Energy Update: Week of October 23rd

Friends,

The college and NHL hockey season is underway (last week I was at the Caps game and UNH-Boston U game), but I hope you are watching the MLB baseball playoff action. I am getting a full report from my Texas colleagues who are enjoying a Dallas v. Houston AL Championship Series. All the games have been won by the road team with Game 7 tonight in Houston. On the NL side, my daughter Hannah seems to have good luck traveling with her. She was in Boston all those years and attended FIVE Championship parades (including a Bosox World Series). Now, she has moved to Philly to go to Grad School at Drexel and the Phillies are one game away from the World Series. And the Eagles look good too!!

There continues to be a lot going on despite the chaos with the House of Representatives Speaker situation. Republicans look to take action this week after tossing McCarthy, rejecting Scalise and then rejecting Jim Jordan.  Now, nine candidates will make pitches today, so who knows where this goes and how soon.  It is getting to more Code Yellow on both the November 17^th funding deadline and emergency funding for Ukraine and Israel conflicts.

The House Energy and Commerce Energy, Climate and Grid Security Subcommittee holds a markup of 17 pieces of legislation tomorrow while the House Resources Committee holds a markup of eight pieces of legislation and Senate Energy’s Public Lands, Forests and Mining panel holds a hearing on 19 pieces of legislation. Other hearings this week include tomorrow’s House Transpo hearing on water resources, a Wednesday Senate Budget hearing on Climate Change and supply chains and Thursday hearings in Senate Energy on offshore energy strategy featuring BOEM’s Liz Klein and Senate Environment on evaluating alternative materials for single-use plastics.

Additional good events include POLITICO’s Wednesday evening discussion on The Future of Grid Reliability with keynote interviews with Rep. Scott Peters (D-Calif) and Rep. Bob Latta (R-Ohio). On Wednesday, Axios holds a discussion on clean energy with Tom Steyer and WH official Justina Gallegos and the US Energy Ass hosts a forum on rural mini-grids.  Finally, ELI hosts its big, annual dinner and Policy Forum tomorrow.

Things for the radar screen: 1) China has said they will now limit how much battery metal it exports.  This makes deep-sea minerals a much more important piece of the EV puzzle. 2) NAAQS PM standards are at OMB and expected soon. The likely outcome will not be good for communities if the standards is too low, especially with the haze data from this summer’s Canadian wildfires skewing the baseline. 3) Finally, less than 50 days to COP28 in Dubai. I am going for early part when they have energy-theme days.  I also am tracking events so let me know your plans if you are going.

                                                                                                                                              

FRANKLY SPOKEN  

“This may hamper the development of a robust clean hydrogen market, undermine volumetric production and price-parity goals, reduce the positive effects of scaling up electrolyzer investment, and prevent clean hydrogen from fulfilling vital roles in hard-to-decarbonize sectors in line with the Administration’s broader decarbonization efforts.”

A draft letter from Ten Senate Democrats led by Maria Cantwell that urged Biden officials not to include strict rules guiding use of clean hydrogen tax credits.

 

ON THE PODCAST

Book Outlines Global Market Challenge for Biden on CapCrude – In latest CapCrude Podcast, our friend and ClearView Energy Partners managing director Kevin Book joined the podcast to discuss the possible impacts to global oil supplies from the Israeli-Hamas fight and how its links to Iran could play out with regards to sanctions and a change in Washington’s posture toward Tehran. He also touched on potential difficult decisions ahead for President Joe Biden as he enters an election year where voters will be assessing his actions to mitigate climate change and looking for relief at the pump that hinges on keeping more barrels in the global market.

 

FUN OPINIONS

Dueling Banjos on IRA from Senate Energy – Sen. John Barrasso, joined by House Energy & Commerce Chair Cathy McMorris-Rodgers penned an op-ed for Newsweek outlining how the Biden Administration’s energy policies are failing the American people. 

Since Joe Biden was inaugurated, he has undermined our sound energy policy and our national security. Emboldened adversaries are a predictable consequence of American weakness, and President Biden's anti-American energy policy has contributed to this weakness. But it's about to get worse. Last year, Democrats rammed through their so-called "Inflation Reduction Act" (IRA), the stated goal of which is to supercharge the energy "transition" at the core of President Biden's radical climate agenda. This energy transition from affordable, available, and reliable American energy is the wrong policy at the wrong time.

Manchin Counters – Sen. Joe Manchin (D-WV), Chairman of the U.S. Senate Energy and Natural Resources (ENR) Committee, refuted the Barrasso-McMorris Rodgers claims made by Senator John Barrasso (R-WY), Ranking Member of the ENR Committee, and Representative Cathy McMorris Rodgers (R-WA), Chair of the U.S. House Committee on Energy and Commerce, in a report about the Inflation Reduction Act.  

“As a result of the Inflation Reduction Act, we are now producing more energy than ever before in our nation’s history. Our natural gas annual production hit a record 36 trillion cubic feet in 2022 and is expected to exceed 37 trillion in 2023. We’re expected to produce 4.6 billion barrels of oil annually in 2023 which would be the highest annual production ever. We exported nearly zero liquefied natural gas in 2016; today our LNG export capacity is more than 13 billion cubic feet per day and by the end of this decade, we’ll be approaching 25 bcf/d. And, we’re projected to add more than twice as much solar and battery storage capacity this year than last year Manchin said. I will continue to work, as always, in a bipartisan way while I continue to push back on this Administration’s efforts to implement the IRA as a radical climate agenda, but I will also push back on my Republican colleagues who refuse to see the benefits this law is already bringing to each and every state in the United States of America.

 

FROG BLOG

Challenges/Crisis in Middle East Underscore Need for Energy Security – In a blog post, RFF’s Alan Krupnick, Aaron Bergman, Lucie Bioret, Yuqi Zhu and Katarina Nehrkorn offer a first look at hydrogen hubs awards.  They write that the selection of these hydrogen hub winners is an important milestone along the path to net zero. The blog addresses how were these hub projects chosen, and how will they help decarbonize the US economy.

 

FUN FACTS

Hydrogen Hub Winners: The EIA says that U.S. marketed natural gas production in the Lower 48 states will grow by 5% (5.0 billion cubic feet per day [Bcf/d]) in 2023 and 2% (1.8 Bcf/d) in 2024 in our latest Short-Term Energy Outlook. Most of the forecast growth comes from the Permian region, where we expect that improved well-level productivity and higher crude oil prices will spur drilling activity that will increase natural gas production.

 

IN THE NEWS

Cantwell Letter Urges Flexibility on 45V – Ten Senate Democrats urged President Joe Biden's administration not to include strict rules guiding use of clean hydrogen tax credits that the Treasury Department is due to release by the end of the year. The letter, which the senators planned to send to White House adviser John Podesta, Treasury Secretary Janet Yellen and Energy Secretary Jennifer Granholm, will urge the officials to make the Treasury guidance flexible. It seeks to allow projects fueled by existing energy sources including, gas, hydroelectricity and nuclear to be eligible for the tax credits. The letter warns that an approach favored by other Democratic lawmakers and environmental groups creating "overly complex eligibility criteria" would hamper the hubs and the growth of the nascent industry. Other Senators signing included Patty Murray, Kristen Gillibrand, Krysten Sinema, Joe Machin, John Fetterman, Bob Casey, Sherrod Brown and Illinois’ Dick Durbin and Tammy Duckworth.

Air Liquide is in 6 of 7 H2 Hubs – In the context of the U.S. government’s announcement to support seven regional Clean Hydrogen Hubs to accelerate low-carbon hydrogen development, Air Liquide is a partner in a record 6 out of the 7 Hubs. This achievement is a recognition of Air Liquide’s commitment to hydrogen development. Air Liquide’s participation in these regional hubs support its ambition to create a reliable hydrogen network in the industry and bring it to scale. Air Liquide will bring its over 60 years of experience along the entire hydrogen value chain and apply its expertise in production, liquefaction, distribution, storage and end-use technologies to meet the specific needs of each region. In order to support the establishment of a nationwide hydrogen network in the U.S, companies have had the opportunity to participate within the Hydrogen Hubs program either as partners with supporting projects, or as supporters who provide their insight and expertise. As a core industry sponsor with a project in the HyVelocity Hub (Gulf Coast), Air Liquide will work with its partners to optimize the Gulf Coast’s existing energy assets to develop hydrogen projects that benefit Texas, Southwest Louisiana, and the surrounding region. Also a partner with projects in the PNWH2 Hub (Pacific Northwest), ARCH2 Hub (Appalachia) and MACHH2 Hub (Midwest), Air Liquide is committed to advancing the clean energy transition and establishing the necessary transport infrastructure to increase the accessibility of hydrogen through the region. In addition, Air Liquide is also a partner of the Alliance for Renewable Clean Hydrogen Energy Systems in California (ARCHES) network and partner of the Mid-Atlantic Clean Hydrogen Hub (MACH2™). As a partner, Air Liquide has the opportunity to provide its expertise and work alongside the other partners to shape the infrastructure for hydrogen production, transportation, and distribution, which is essential for the growth and sustainability of the market. All the Hubs selected for funding negotiation by the DOE, to receive up to 7 billion USD in Bipartisan Infrastructure Law (BIL) funding, aim to drive the establishment of a nation-wide hydrogen network to accelerate the use of hydrogen in the U.S. energy transition.

NY Gov Keeps Hurting Offshore Wind – A week after rejecting inflation-related cost increases, for offshore wind projects, Gov. Kathy Hochul dealt another blow Friday to the state’s leading offshore wind developer. The Democratic governor vetoed a bill that would allow the city of Long Beach to permit a transmission line for one of its state-contracted offshore wind projects through a park. The veto drew recrimination from clean energy supporters who have long been waiting for New York’s offshore wind projects to get underway. “This decision sends another troubling signal to renewable energy developers following last week’s action by the New York State Public Service Commission,” Equinor Renewables Americas President Molly Morris wrote, referring to a recent failed attempt to renegotiate future power sales contracts. “The veto undermines New York’s commitment to the energy transition and the role offshore wind must play in achieving the state’s renewable energy mandates.”

 

ON THE SCHEDULE THIS WEEK

Forum Focused on CHIPS – POLITICO holds an event tomorrow at 8:30 a.m. on the CHIPS and Science Act, convening key lawmakers, administration officials, and stakeholders managing the windfall of federal dollars, overseeing its progress, and vying to rebuild the U.S. chips industry for the future.

Forum to Look at Decarbonizing Heavy Industries – The Atlantic Council Global Energy Center and Climate Advisers hold a virtual forum tomorrow at 9:30 a.m. for an expert discussion on strengthening international cooperation on trade policies to enable decarbonization of heavy industry. During the discussion, panelists will also address the outcomes of the EU-US Leaders Summit, scheduled for October 20, related to the harmonization of trade of emissions-intensive goods.

Forum Looks at Brazil, Nuclear – The Johns Hopkins SAIS program will host a forum tomorrow at 12:30 p.m. on Brazil, nuclear energy and water. This presentation will introduce Brazilian nuclear energy history from an environmental perspective. Dr. Jennifer Eaglin will interrogate the connections between hydroelectric and nuclear energy development in Brazil.

SEIA Forum Focused on IRA Low-Income Community Credit – The Solar Energy Industry Assn holds a webinar tomorrow at 2:00 p.m. on low-income communities bonus credit.  The event will provide detail on applying for the Inflation Reduction Act’s Equity-Focused Allocated Incentive. The IRA’s low-income communities bonus credit is a unique, allocated credit that will ensure that many of the gigawatts of clean energy capacity projected to come online in the next decade are built in or will serve historically marginalized communities.

ELI Forum, Dinner Set – The Environmental Law Institute holds its annual Firestone Policy Forum and Awards dinner tomorrow starting at 3:00 p.m. The Policy Forum will be looking at preparing for the First Global Climate Stocktake where expert panelists who will discuss how much progress has been made nationally and globally toward greenhouse gas reduction targets.  Of course, Bracewell is a major sponsor of the event. State’s Susan Biniaz is among the panelists. Dr. J. Marshall Shepherd, renowned scientist and weather-climate expert, is ELI's 2023 Environmental Achievement Award honoree.

AEI Hosts Graves on Aviation Policy – The American Enterprise Institute holds a discussion tomorrow at 3:30 p.m. with House Transportation and Infrastructure Aviation Subcommittee Chairman Garret Graves (R-LA) on policy issues surrounding air travel. Along with Capital Access Alliance’s Brian Walsh and US Travel Association’s Geoff Freeman, they will explore the reauthorization of the FAA, the efficacy of the existing air traffic control system, questions about pilot training and hours, the regulatory environment, and perimeter rules around Ronald Reagan Washington National Airport.

Forum to Look at Energy Efficiency – Axios holds an event on Wednesday at 8:00 a.m. at the Long View Gallery in Washington, D.C. exploring how policymakers, companies and consumers can work together to encourage the long-term, safe uptake of more energy efficient products. Speakers Include Tom Steyer and Rep. Richie Torres.

USEA Hosts Mini-Grid Forum – The US Energy Assn continues its three-part webinar series, led by AmpUp consortium member NRECA International, to address challenges faced by mini-grid operators, as well as opportunities to overcome them and strengthen their presence and service to the rural communities they reside in. There also will be an overview of lessons learned, and innovative approaches to improve performance and sustainability. The second event is Wednesday at 9:00 a.m. on operating a successful mini grid involves support and buy-in from the community it serves.

Senate Budget Looks at Supply Chains – The Senate Budget Committee holds a hearing on Wednesday at 10:00 a.m. on how climate change impacts supply chains.

Senate Indian Affairs Looks at Water Issues – The Senate Indian Affairs Committee holds a hearing on Wednesday at 2:00 p.m. examining water access in Native communities.

POLITICO Hosts Grid Reliability Forum – POLITICO holds a deep-dive conversation on what it will take to ensure a reliable electric grid for the future on Wednesday at 5:00 p.m. EPA’s proposed standards for coal and new natural gas-fired power plants have implications for the future of the electric grid. These changes raise questions about how to ensure that America will have the electric power that it needs, where and when we need it.

Latin American Energy Conference Set – The Inter-American Dialogue hosts the 7^th Latin America Energy Conference on Thursday starting at 9:00 a.m. The conference will explore how the region can use tools like energy diplomacy, strategic investments, regulation, and technology and information to reconcile the need to urgently transition to low carbon economies with their use of natural resources to trigger sustainable development. The conference will convene energy company executives, US and Latin American government officials, and international and nongovernmental organizations to discuss the how the region will shape a new era of energy systems.

Chamber Forum Looks at Disclosure, SEC – The U.S. Chamber of Commerce Center for Capital Markets Competitiveness holds a discussion on Thursday 9:00 a.m. on climate disclosure developments, including the SEC, California and EU Extraterritoriality issues. SEC’s Gary Gensler is among the speakers

Senate Energy Looks at Offshore Energy – The Senate Energy Committee holds a hearing on Thursday at 9:30 a.m. on Federal offshore energy strategy and policies. BOEM’s Liz Klein and NOAA’s Janey Coit testify.

Senate Environment Looks at Plastic Alternatives – The Senate Environment Chemical Safety, Waste Management, Environmental Justice and Regulatory Oversight Subcommittee holds a hearing on Thursday at 10:00 a.m. evaluating alternative materials for single-use plastics.

GW Law Event Discusses Climate Litigation – The GW Law School holds a forum in its Jacob Burns Moot Court Room on Thursday at 12:15 p.m. featuring Patricia Galvão Ferreira of Dalhousie University School of Law in Halifax, Nova Scotia. She will present on how National Courts are domesticating an equity principle of international environmental law and why that matters for climate justice.

AU Carbon Forum Looks at Biochar – The AU Institute for Carbon Removal Law and Policy holds a forum Thursday at 1:00 p.m. upscaling biochar as a soil and waste management technology. Agricultural biochar offers an appealing way to sequester carbon dioxide while also improving farm soils. It is possible to lock atmospheric carbon into a stable solid form, which has numerous benefits when ground up and added to farm soils.

Forum to Look at COP28 – The Environmental and Energy Study Institute (EESI) holds a briefing on Thursday at 2:00 p.m. looking at Congress’s role in the global effort to finance climate solutions. While investments in climate action are expensive, the impacts of climate change at home and abroad are even more costly. This briefing will bring together a panel to explore these questions and discuss possible policy solutions.  NY Rep. Adriano Espaillat will provide intro remarks.

Forum to Look at Oil, Gas Production Costs – The Center on Global Energy Policy (CGEP) at Columbia University's School of International and Public Affairs will host Lucija Muehlenbachs, CGEP visiting faculty member, associate professor of economics at the University of Calgary, and a university fellow at Resources for the Future, for a fireside chat on Thursday at 6:00 p.m. focused on some of these burdens, such as methane emissions and well-site cleanup, as well as recent policy developments.

Climate Justice Forum Set For Georgetown – Georgetown University’s POCACITO hosts the 2023 Transatlantic Forum for Environmental and Climate Justice in the Copley Formal Lounge on Friday. The all-day event foregrounds the continuing work of organizers, activists, academics, and policy experts in the U.S. and Germany who are making sure that environmental and climate action is rooted in, and aspirational of, justice.

 

IN THE FUTURE

Energy Economists Talk Carbon Capture – The National Capital Area Chapter of the United States Association for Energy Economics holds a forum next Monday October 30^th at 12:00 p.m. carbon capture use and storage and carbon removal prospects. The speaker – Boston Consulting Group's Alex Dewar – will discuss the evolution of technologies and costs; the role of policy incentives in market adoption; and what sectors are best suited to employ CCUS and develop viable carbon management business models.

ELI Looks at Hydrogen – The Environmental Law Institute holds a webinar next Monday October 30^th at 12:00 p.m. on understanding Hydrogen. Clean hydrogen is expected to play a vital role in decarbonizing the U.S. economy and reducing greenhouse gas emissions. Understanding hydrogen’s potential role in decarbonization means learning about types of hydrogen and their various production processes.

AGA to Release its Winter NatGas Outlook – At a virtual media event on Monday October 30^th at 1:00 p.m., experts from the American Gas Association will provide AGA’s annual media briefing on the upcoming winter outlook. AGA staff will present observations on the natural gas market as the U.S. moves into the 2023-2024 winter heating season and discuss the factors driving natural gas markets as well as market fundamentals, data on planning preparedness, and the winter fuel costs forecast. To RSVP, email Adam Kay at akay@aga.org.

Norway Energy Advisor Addressed Future Action – The CSIS Energy Security and Climate Change Program hosts a forum on Tuesday October 31^st at 10:00 a.m. with Terje Aasland, Minister of Petroleum and Energy of Norway.  The event features a discussion on Norway’s vital role as an energy supplier, and how the U.S. and Norway are working together towards providing a stable energy supply and a sustainable and just transition.

ELI Forum Looks at Farm Bill – The Environmental Law Institute holds a forum next Tuesday October 31^st at 12:00 p.m. unpacking the environmental implications of the 2023 Farm Bill. Speakers will discuss what the Farm Bill is and why it is one of the most important environmental laws Congress will address this year. They will explain the wide and significant impact that agriculture has on all aspects of the environment, including climate change. USDA’s Bidisha Bhattacharyya is among the speakers.

Financing Clean Energy at State Level – The Clean Energy States Alliance holds a forum on Wednesday November 1^st at 1:00 p.m. on financing clean energy at the state level. Speakers from NYSERDA and DOE’s Loan Programs Office (LPO) will explain how New York is taking advantage of LPO’s new expanded Title 17 loan authority and how other states can reach similar agreements with LPO and access federal funding for clean energy projects.

Forum Looks at Climate, Energy, Insecurity – The Henry L. Stimson Center holds a forum on Thursday November 2^nd at 11:00 a.m. looking at how UN Peace operations can help address challenges. Speakers will explore how best to leverage the presence of UN Peace Operations in fragile states to adopt renewable energy technologies that can contribute to building lasting peace. Where does this potential exist and what are examples of how it has been demonstrated.

ACORE to Look at Connecting PJM, MISO Grids – The American Council on Renewable Energy holds an event on Thursday November 2^nd at 1:00 p.m. connecting PJM and MISO grids, looking at the benefits and challenges. Transmission constraints between the PJM Interconnection and Midcontinent Independent System Operator are costing consumers billions of dollars a year, with those costs expected to increase as the regions continue to decarbonize their power generation and electrify vehicle fleets.

Forum Looks at Decarb of Heavy Industries – The NYU Law School’s Institute for Policy Integrity holds a forum on Wednesday November 8^th at 2:00 p.m. on research insights on industrial decarbonization. Panelists will share preliminary findings from their research and policy work focusing on efforts to decarbonize various industrial processes, including steel and chemicals manufacturing. The discussion will address the technological and policy changes needed to achieve these shifts as well as the role of academic research in the policymaking process.

Gas Forum Set for San Antonio – The 7^th Annual US-Mexico Natural Gas Forum is set for San Antonio on November 13^th to 15^th at the Westin Riverwalk. This Forum focuses on exporting gas to Mexico, including the many elements involved in mobilizing U.S. production to satisfy growing Mexico natural gas and power demand.