Energy Update: Week of September 13

Friends,               

That was some great tennis at the US Open over the weekend, maybe except for the Men’s Final which I thought might be a bit closer.  Daniil Medvedev denied Novak Djokovic the first Grand Slam since 1969 while British teenager Emma Raducanu won the women's final on Saturday. Raducanu is the first qualifier to ever win a Grand Slam event. 

Budget Reconciliation takes center stage starting today in the House.  Energy and Commerce will go to work today starting with health provisions, but the clean energy provisions will be on the agenda soon, while the tax writers have released a hugely complicated tax plan and will discuss it starting tomorrow.  All this and more in our Bracewell PRG expert analysis Reconciliation Report Section below. 

Despite the House moves, it seems WV Sen. Joe Manchin continues to be a problem at the center of all the action.  On CNN Sunday, he said has no interest in a reconciliation package that exceeds $1.5 trillion.  Rolling Stone ran a story on progressive claims that he only takes this position because of lobbyists, which of course is a pretty dumb approach if you know Manchin.  Finally, the UMW sent a strong letter to Manchin last week outlining their strong opposition to the clean energy provisions in the budget recon.  (Can send a copy if you want to see it)

As for events, tomorrow, the Atlantic Council Global Energy Center and the Energy Innovation Reform Project hold a discussion on New York State’s ambitious renewable energy goals and the land use considerations in achieving them. During the meeting, EIRP will release its new report by our friend Paul Sanders.  On Wednesday, ConservAmerica holds a timely conversation on federal land protection policy and the importance of striking a balance between protecting special places for future generations and respecting states' rights, private property, and individual freedom. Finally, the Business Council for Sustainable Energy holds a forum on Friday that will explore strategies to strengthen diversity and inclusivity in the clean energy economy. 

Congrats to former Bracewell staffer and AGA Comms manager Adam Cloch who joins Rep. John Curtis (R-Utah) today as communications director.  Curtis, of course, is a leader on the Republican Climate Caucus.

The California Recall election is tomorrow…Something to keep an eye one.  Yom Kippur, the highest of holy days, starts Wednesday at Sundown.  I hope everyone has an easy fast.  Let’s try to get those vaccine shots if you can.  Stay Safe and healthy.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

 

FRANKLY SPOKEN

“Chairman Phillips’ deep legal understanding of the issues at stake and clear recognition of the benefits that renewable energy provides our nation’s communities are encouraging. A full complement of five FERC commissioners is critical for advancing the clean energy transition. We call on the Senate to swiftly confirm this highly qualified nominee, so FERC can effectively address the transmission and power market reforms necessary to unlock America’s growing renewable energy economy.”

ACORE CEO Gregory Wetstone on the nomination of Willie Phillips, Chairman of the District of Columbia Public Service Commission, to the Federal Energy Regulatory Commission (FERC).

ON THE PODCAST

Cap Crude Looks at Oil Demand Outlook – Our friends at Capitol Crude visit with Chris Midgley, global director of analytics at S&P Global Platts, who shares his latest outlook for global oil demand heading into the third year of the pandemic and takes stock of the tension between climate ambitions and economic growth.  Midgley explains why US shale drillers continue to hold back despite relatively higher oil prices, whether the US and Iran will likely reach a nuclear deal to remove oil sanctions, and how US Gulf Coast producers and refiners are recovering after Hurricane Ida. Then, after the interview, Chris van Moessner takes a Market Minute to look at near-term oil market drivers.

FUN OPINIONS

The Hill: A Game-Changing Clean Energy Market Signal – In an op-ed in The Hill, ClearPath Action’s Jeremy Harrell and the American Conservation Coalition’s Quill Robinson write that a bipartisan energy tax proposal to encourage innovation in the clean energy sector called the Energy Sector Innovation Credit (ESIC) is well-positioned to become law. ESIC creates incentives for breakthrough innovation for power generation and storage technologies across the clean energy spectrum. It helps overcome initial financing hurdles associated with developing “first-of-a-kind” and nascent power generation technologies.

FROG BLOG

Gas Plant Was Huge Plus to Getting Power Back on in NOLA – It turns out the natgas plant in New Orleans DID have a real impact on getting power back going despite a story in the New York Times that tried to show it didn’t. The New Orleans Power Station (NOPS) was an important resource in Hurricane Ida restoration process. Working as designed, NOPS is helping to restore customers in small increments because of its very flexible operating profile. That ability is critical when post storm restoration conditions change by the hour.  On Sept. 1, Entergy crews turned power on for some customers in Eastern New Orleans with generation supplied by both NOPS and a restored transmission line coming into the area over Lake Pontchartrain. This was the first step in bringing power back to the metro region, after Hurricane Ida left devastating destruction in its path.  While the NYT lamented that is took 50 hours for that “Black Start” to occur, much of that was due to safety concerns as the stormed cleared and major transmission damage that needed to be addressed immediately (and was).  While no response can be perfect, EEI reminded about the army the industry mounted to respond.

FUN FACTS

Wind Facts on Turbines, Output: The state of wind energy from a recent Berkeley Labs report:

• Wind energy output accounts for 8% of US electricity supply; it provides more than 20% in 10 states.
• Turbines continue to get larger; in 2010, no turbines had blades larger than 115 meters in diameter; now 91% of all newly installed blades are larger.
• The average installed cost of wind projects is $1,460/kW (about the same cost for the last three years). Wind energy prices are ~$20/MWh in the interior "wind belt" of the US; it is about $33/MWh for the US.
• Only about 80 Mw of a total 32 Gw (0.25%) of installed offshore wind capacity is floating.

RECONCILIATION REPORT

Our team at Bracewell PRG is starting FY2022 Budget Reconciliation Alert. A weekly newsletter designed to help clients navigate the arcane process and politics of the most significant bill in 2021, it will combine links to authoritative documents and brief opinion pieces aimed at highlighting what we think you need to know. None of the information or analysis in these reports is intended, or should be interpreted, as statements from Bracewell LLP or advice on any specific tax or legal issues. However, we have a deep bench of legislative, regulatory, and legal experts available to answer any questions you may have. Please enjoy and feel free to let us know your reaction to this new product.  You can get future versions on line here.

Included in this newsletter are sections on:

• Setting the Stage
• Liam Donovan’s Bottom Line
• An Interview with PRG Senior Principal Yasmin Nelson, Former Senior Policy Advisor to Then-Senator Kamala Harris 
• Key Policies Being Considered in the Reconciliation Process
• Energy/Environment Tax with Timothy Urban
• Wyden Partnership and Stock Buyback Tax Proposals
• Summary of House Ways and Means Committee Markup
• Document Library

Setting the Stage

Timing

Congress faces a series of tight deadlines over the next month as Democratic leadership works to navigate negotiations within the party and between the chambers to pass both bipartisan infrastructure legislation and partisan budget reconciliation legislation. The relevant House and Senate committees aim to put together the full draft of the $3.5 trillion budget resolution by September 15. The House plans to vote on the bipartisan infrastructure bill, the American Infrastructure Investment and Jobs Act, on September 27; progressives want the House to vote on the final budget reconciliation package on September 27 as well. These timelines have been further complicated by Senator Joe Manchin’s (D-WV) and Senator Kyrsten Sinema’s (D-AZ) reiteration that they will not support a $3.5 trillion spending plan, for fear of the economic consequences of an increasing national debt and inflation. Over the next weeks, Democratic leadership in both chambers will need to pursue an agreement that will win the support of both progressives and moderates, with all sides needing to make compromises.

Tracking Progress

As negotiations move ahead, Members of Congress work to pressure leadership to adopt their preferred policy options both through backroom negotiations and public signaling. One of the preferred methods to publicly outline one’s policy priorities and generate awareness are letters to leadership. The following letters offer glimpses into the objectives of some key figures and coalitions. This list is non-exhaustive and does not include every letter issued to leadership. Links to each letter are included in the document library.

• On September 1, a coalition of 10 Democratic governors led by Governor Gavin Newsom (D-CA) wrote a letter to Democratic leadership supporting broad swaths of the Build Back Better Agenda.
• On September 2, Senator Joe Manchin (D-WV) rocked negotiations after publishing an opinion piece in the Wall Street Journal expressing his opposition to a $3.5 trillion budget framework for fear of the economic consequences of inflation.
• On September 2, Sen. Amy Klobuchar (D-MN) led a group of nine Democrats to send a letter to leadership urging them to include support for biofuels in the reconciliation package.
• On September 3, two moderate House Democratic leaders, Rep. Stephanie Murphy (D-FL) and Rep. Henry Cuellar (D-TX), sent a letter, supposedly on behalf of a broader caucus, rejecting deficit spending in the budget reconciliation package except on climate policy. They also requested that the bill be “pre-conferenced” with the Senate and that members be given at least 72 hours to review the legislation before it comes to the House floor.
• On September 3, a coalition of 42 Democrats led by Rep. Jamaal Bowman (D-NY) called for the Polluter Pays Climate Fund Act to be included in the final budget reconciliation bill.
• On September 7, more than 40 House Democrats led by Rep. Lloyd Doggett (D-TX) urged House Ways & Means Committee Chair Richard Neal (D-MA) to pass an array of international tax provisions, including boosting the minimum tax rate on corporate foreign earnings to 21%.

Liam Donovan’s Bottom Line

Committee action on the reconciliation package heated up this week, as eight House committees held markups on their respective components, joining a ninth (Oversight and Government Reform) that approved its contribution last week. Perhaps most importantly, the Ways and Means Committee began piecemeal consideration of the elements under its jurisdiction, which encompass half of the Build Back Better plan's $3.5 trillion proposed cost, in addition to all of its financing. While these committee products should not be seen as in any way final, they likely represent the outer limits of what the ultimate package could look like once negotiated with the upper chamber. And with no such markups planned in the evenly divided Senate, the process also marks the last best chance for rank and file members to have their input considered before deals are hatched in the back rooms of the Capitol.

As both chambers race to meet the soft September 15 deadline for legislative recommendations, the endgame remains opaque. Fundamental questions of substance and procedure remain unanswered, the deciding vote in the Senate has publicly called for a "strategic pause," and Congress is hurtling toward an end-of-the-month policy cliff related to everything from government funding to surface transportation to the federal debt limit.

Over the course of the next week we will get our first look at the potential components of the reconciliation package, all of which are likely to be written to max out their respective allocations under the instructions. Without a good sense of the demands from influential members like Senators Manchin (D-WV) and Sinema (D-AZ), it is difficult to discern which parts are built to last. We also await key rulings from the Senate parliamentarian whose decisions could reign in the policy scope of the package in any number of ways. Until we begin to solve for these variables, the ultimate size, shape, and speed of this package remains very much in flux.

Follow Liam on Twitter: @LPDonovan

An Interview with PRG Senior Principal Yasmin Nelson, Former Senior Policy Advisor to Then-Senator Kamala Harris

Q: Yasmin, what is your perspective on this year’s budget reconciliation exercise?

A: The FY2022 budget reconciliation process is absolutely central to the Biden-Harris and congressional Democratic agenda. It’s true that there are very significant political and procedural challenges ahead. But, now that they have started this process, it is imperative that Democrats walk away with a legislative win to demonstrate that they can effectively handle power and manage multiple factions within their party.

Q: Can you comment on the political challenges the President is encountering?

A: Well, on the one hand, House and Senate moderates are making sure that leadership knows that their votes are essential. Some of their demands strike at the heart of the policy prescriptions in the bill, others hamstring the party’s ability to raise revenue to offset the bill. On the other hand, progressives, who see themselves as the guardians of the party’s principles, are anxious that their votes not be taken for granted. Their goal is to resist the moderates and push the needle on policy, especially as it pertains to tax fairness and environmental issues. As the leaders work to delicately balance these two forces, it is unclear yet just how far the pendulum will swing.

Q: How do you think the President sees the role of the administration in this process?

A: As you know, the President has already enunciated a bold path forward on tax issues, especially climate and energy tax policy in his budget’s Treasury Green book. Now, with so much at stake, and the legislation not being fully written, the President must ensure that everyone in the party works well together towards the common goal. He is having difficult conversations with moderates and congressional leadership, leveraging his decades of personal experience on the Hill, and his well-known ability as a dealmaker.

Q: Given all this - what does this mean for the eventual content of the reconciliation package?

A: While the Biden-Harris administration has postured itself on a big, bold legislative agenda, they may have to compromise to get the votes. Once we have seen the outcome of the House debate on their reconciliation package we will have a better idea of what the parameters of a final bill are. At this point, we just don’t know how far folks will go to dig their heels in - or if in the end any of these players would really contemplate withholding their vote for the budget reconciliation bill with so much at stake.

Q: There has been a lot of discussion among congressional leaders about an expedited process for reconciliation, what do you think?

A: With so much of the process still ahead, and the inevitably intense subsequent negotiations between House and Senate, I am anticipating we may be wearing our winter coats as the process concludes.

Follow Yasmin on Twitter: @YasminRNelson

Key Policies Being Considered in the Reconciliation Process

Major Issues

Outside of general tax policy are a host of significant energy/environment and health care provisions in the hopper that will require significant involvement from the House Energy and Commerce, Senate Energy and Natural Resources, Senate Environment and Public Works, and Senate Health, Education, Labor and Pensions Committees. After Senator Manchin’s Wall Street Journal Op-Ed last week, it is clear Democratic leaders in both the House and Senate will need to negotiate from $3.5 trillion downward, with the idea of shoring up moderate support. The question remains of what will be on the chopping block to bring down the top-line.

Much of this debate on Capitol Hill is currently surrounding health care programs. House and Senate Democrats do not currently have agreement on whether the focus should be to permanently authorize funding for the Affordable Care Act, or instead expand Medicare and Medicaid programs to include dental, vision, and hearing. Senate Democrats – with the backing of Majority Leader Schumer – are pushing for these Medicare improvements, which could cost upwards of $400 billion. House Democrats, meanwhile, are more wary of the price tag and instead see expansions to Medicaid and permanent reauthorization of Obamacare funding as a way to cross the finish line without a $400 billion hit.

Energy and Environment

Overview:

On the energy/environment side of the ledger, Senate Majority Leader Schumer (D-NY) has suggested in a dear colleague letter that climate provisions in the infrastructure bill and reconciliation package would put the US on track to reduce emissions 45% by 2030 compared to 2005 – nearly all of President Biden’s 50% by 2030 target.

• The climate investments in the Build Back Better Act were endorsed in an open letter from 20 environmental groups including the Sierra Club and Natural Resources Defense Council that asks for programs totaling $746 billion that would cut US emissions in half by 2030 relative to 2005 items.
• Key to these reductions would be the clean electricity payment program led by Senator Tina Smith (D-MN), that would push utilities to speed up clean power deployment. This would essentially operate as a carrot to those who operate over “Business As Usual” combined with a stick for those utilities that do not meet the clean energy requirements and would face alternative compliance payments, as well as a methane fee that would serve to both reduce emissions and raise revenue.
  • These measures are further bolstered by the upcoming House Energy and Commerce markup, led by Committee Chair Frank Pallone (D-NJ). The $456 billion slice will contain the most consequential provisions for climate and greenhouse gas emissions, including leaving out natural gas from a clean electricity payment program, funding zero-emissions vehicles, and imposing a methane fee on oil and natural gas systems.
• The path forward is still murky politically and procedurally, with committees of jurisdiction continuing to work with the Senate parliamentarian to get initial forecasts into how provisions might fare during the upcoming scrutiny by the Senate Parliamentarian under the Byrd Rule.

Details on the Clean Energy Payment Program

Regarding the CEPP, the House Energy and Commerce Committee released:

The Build Back Better Act invests $150 billion in a Clean Electricity Performance Program (CEPP) at the Department of Energy (DOE). The CEPP, which complements tax incentives for clean energy, will issue grants to and collect payments from electricity suppliers from 2023 through 2030 based on how much qualified clean electricity each supplier provides to customers.

• An electricity supplier will be eligible for a grant if it increases the amount of clean electricity it supplies to customers by 4 percent compared to the previous year. The grant will be $150 for each megawatt-hour of clean electricity above 1.5 percent the previous year’s clean electricity.
• Electricity suppliers must use the grants exclusively for the benefit of their customers, including direct bill assistance, investments in qualified clean electricity and energy efficiency, and worker retention.
• An electricity supplier that does not increase its clean electricity percentage by at least 4 percent compared to the previous year will owe a payment to DOE based on the shortfall. If, for example, the electricity supplier only increases its clean electricity percentage by 2 percent, the supplier will owe $40 for each megawatt-hour that represents the 2 percent shortfall.
• The CEPP gives electricity suppliers the option to defer a grant or a payment for up to two consecutive years.
• Eligible clean electricity is electricity generation with a carbon intensity of not more than 0.10 metric tons of carbon dioxide equivalent per megawatt-hour.

PRG Analysis:

1. With respect to the 4% clean-energy increase rate, supporters argue that the bill has a large carrot ($150/mwh) versus a small stick for the alternative compliance payment (ACP) ($40/mwh).  The differential should buy a larger rate of incline, they reason. But given unknown factors like the rate of transmission uptake, reliability needs, and the lumpiness of renewable investment, 4% still seems to be a reach goal. However, the best of years to date do not typically reach 2% even with a range of available credits.
2. CEPP mechanism appears to work this way:  If you make the 4% increase, you are paid the CEPP few for every mwh above the first 1.5% of your clean energy growth.  The first 1.5% is considered business as usual (frankly, just inertia), and the drafters feel they shouldn’t pay for that. 
3. The 0.10 metric tons figure for eligible clean energy was arguably designed to allow natural gas with CCS to qualify. However, there is much additional analysis and assessment to be understood to determine the net effect on gas.
4. The proposal is not supposed to confer special reliability authority on DOE.  Nor does it require DOE to set up a trading program, but it is anticipated that DOE will do so anyway as a matter of administrative convenience and implementation. All of this seems at least in part to help clear the Byrd Rule.

Details on the Methane Fee

Regarding the Methane Fee, the House Energy and Commerce Committee released:

The Build Back Better Act establishes a methane fee on pollution from the oil and gas industry above specific intensity thresholds. The methane fee builds on EPA’s existing Greenhouse Gas Reporting Program, recognizes the cleanest performers, holds individual companies responsible for their own leaks and excess methane pollution, drives innovation in the sector, and supports the creation of good-paying jobs.

PRG Analysis:

• The provision is no longer based on the architecture of the Whitehouse March bill or subsequent draft.  The Treasury Department is NOT charged with determining a basin-by-basin structure.  Rather, EPA is authorized to build off of its existing GHG reporting.
• The sources covered will be those identified in Subpart W, including upstream, midstream and downstream components.
• The methane fee WILL NOT be applied to imports of oil and gas.  The only trade implication is that it will likely apply to EXPORT facilities, but not to imports of either oil or gas.
• Many have suggested that the provision could be criticized as double taxation (or double regulation) in light of the pending EPA upstream methane regulation.  They argue that the fee kicks in TWO YEARS, allowing for implementation of the regulation before imposition of the fee.  Given the potential for litigation and delay, we are dubious as to this effect.

House Progressives

The House Progressive Caucus of course sees the list of desirables as much larger than E&E and health care upgrades – but with a race against the clock, pressure from the White House and Democratic leaders to bring Manchin and Sinema on board, and ongoing Byrd Rule issues, the wish list will need to narrow over time.

Energy/Environment Tax with Timothy Urban

On the cusp of one of the more significant tax bills affecting the energy and environment sectors in many years, the outlook is anything but clear. While many years have been characterized by divided government and modest extensions (sometimes retroactive) of existing credits, taxpayers are much more excited over the possibilities represented by the FY2022 reconciliation bill. Presuming that the President and the House and Senate majorities can find their way to consensus, this bill could send hundreds of billions of dollars of tax incentives to the Rose Garden for a signing ceremony before the end of the year. Eight big questions that we will look to answer over the next few months:

1. Will lawmakers raise revenue to offset the clean energy tax incentives by repealing conventional energy tax provisions (e.g. Obama budget revenue raisers) or by instituting new taxes on fossil fuels?
2. Which provisions will be stripped out of the bill, or caused to be significantly rewritten, by threat of the Byrd Rule, that ever-present sword of Damocles in the Senate during reconciliation, and how will that affect the content of the final bill?
3. In the end, how will the House and Senate negotiators overcome the seemingly insurmountable conflict between the Senate’s “tech neutral” approach versus the House’s more conventional “GREEN Act” approach? Will the administration officials have to serve as the tie-breaker in these discussions?
4. After so much talk about the need for tax credit refundability to help startups with no current year tax liability, will the fiscal constraints allow tax writers to provide a Direct Pay option to developers? If they do, will the payment represent a dollar-for-dollar alternative to the tax credits, or will there be some discount applied?
5. Carbon sequestration tax credits may become a center for heated debate - advocates see this technology as a key ingredient to the President’s plans for national decarbonization and are pushing for enhancements to existing law, but a spirited assembly of environmental groups are mounting a determined counter-attack in an effort to defund the fossil fuel industry.
6. Hydrogen energy has sat in the shadows for over twenty years; will 2021 be the year that Congress approves a seminal clean hydrogen PTC/ITC package and jumpstarts the sector?
7. Few proposals have greater potential impact on the grid, but a less lucky history on Capitol Hill, than energy storage. Can legislators overcome their remaining differences and approve an important energy storage enhancement to the investment tax credit?
8. For those of you who relish issues with more than their share of drama, there is always the new Sustainable Aviation Fuel tax incentive proposal. With multiple House and Senate bills characterized by different mechanisms and different environmental standards, it’s anybody’s guess which approach lawmakers will elect…

Wyden Partnership and Stock Buyback Tax Proposals

Analyses from the New York Times and Wall Street Journal were utilized in this report.

Finance Committee Chairman Ron Wyden (D-OR) and Sen. Sherrod Brown (D-OH) offered proposals for tighter tax rules on partnerships and an excise tax on stock buybacks.

The proposal would make it harder for partnerships to divide up income and deductions to their partners in the ways that do the most to minimize taxes. Under the new rules, if two partners who were members of a single corporate group sold a shared asset, the profit would have to be divided equally, not parceled out disproportionately to maximize tax advantages. Similarly, partnership debt, which allows partners to take deductions and claim cash distributions, could not be shuffled from partner to partner to reduce their tax liabilities. Those changes, without any increase in tax rates, would raise $172 billion over 10 years, according to the Joint Committee on Taxation, Congress’s official scorekeeper on tax matters.

The bill would impose a 2% excise tax on publicly traded companies’ stock buybacks, a move that is typically seen as helping shareholders. There is no independent score yet, but the plan could raise about $100 billion over a decade, an aide to Mr. Brown said. Some Democrats have favored making buybacks illegal, or setting the tax so high that buybacks would make no economic sense. But Democratic tax aides said that they were trying to balance the desire to curtail stock buybacks with the need to raise revenue for the social policy bill. At the very least, a 2 percent tax on buybacks could encourage companies to use excess cash to pay higher dividends, which shareholders already pay taxes on.

Summary of House Ways and Means Committee Markup

The House Ways and Means Committee led by Chairman Richard E. Neal (D-MA) met on September 9 and 10 to markup measures spanning from universal paid family and medical leave, to expanding child care access, to strengthening retirement savings, to modernizing trade programs that prioritize American workers. The slate of announced measures demonstrates that Democratic leadership at the committee level intends to march forward with relevant markups; however, the markup omits many of the most important and politically fraught battles over energy and environment issues.

Included in this week’s markup are investments that will:

Expand workplace support by:

• Providing up to 12 weeks of universal paid family and medical leave for all U.S. workers;
• Reauthorizing the Health Profession Opportunity Grant (HPOG) program to strengthen this effective health care job training program and making it available nationwide; and
• Investing in child care access and equity by:
  • Ensuring that parents and caregivers have the most useful and up-to-date information on available child care options and helping them easily apply for slots;
  • Funding the construction and remodeling of child care facilities to make them safer and more aligned with public health guidelines; and
  • Raising the wages of child care workers, who currently earn a median wage of $12.24 per hour and often live in poverty.

Strengthen retirement security by:

• Requiring employers without employer-sponsored retirement plans to automatically enroll their employees in IRAs or 401(k)-type plans; and
• Making the Saver’s Credit refundable so that those without any income tax liability are eligible to receive the benefit in the form of a contribution to their retirement account.

Improve elder health by:

• Expanding Medicare coverage to include dental, vision, and hearing benefits, quickly getting new vision and hearing services to beneficiaries in 2022 and 2023, respectively, to eliminate cost and coverage barriers to this care.

Protect the elderly and people with disabilities in nursing homes by:

• Funding elder justice programs that increase support for state and local Adult Protective Services offices and long-term care ombudsman programs to better prevent elder abuse, neglect, and exploitation;
• Addressing the staffing shortages in long-term care facilities by providing funds for recruitment and retention, including wage subsidies, access to child care, tuition reimbursement, and student loan repayment; and
• Improving the accuracy and reliability of the data collected in these facilities to increase transparency for patients and their families, and strengthen the federal understanding of care quality and reimbursement, and study and update staffing – a key predictor of quality and safety.

Modernize and reform the Trade Adjustment Assistance (TAA) programs by:

• Increasing benefits and expanding eligibility to meet the needs of today’s workers under TAA for Workers program;
• Re-establishing the TAA for Communities program to target support and initiate proactive outreach in trade-affected communities;
• Delivering additional funding to the TAA for Community Colleges and Career Training program to better support students served by community colleges;
• Expanding eligibility, improving outreach, and increasing funding for TAA for Firms to assist firms facing competition from abroad; and
• Improving outreach and increasing benefits for TAA for Farmers, which hasn’t received new funding in a decade.
• Other Markups Week of September 7, 2021

Other Committee markups on the House budget resolution include:

• House Natural Resources Committee
• House Science, Space, and Technology Committee
• House Small Business Committee
• House Financial Services Committee
• House Education and Labor Committee
• House Agriculture Committee

Relevant committee documents are linked in the Document Library below.

Document Library

Useful Background Material

For the Congressional Research Service report on “The Senate’s ‘Byrd Rule’” click HERE.

Provisional Text

For the summary of the Senate budget resolution click HERE.

• For the text of the Senate budget resolution click HERE.
• For the committee print to accompany the FY22 budget resolution click HERE.
• For Senate Majority Leader Chuck Schumer’s (D-NY) dear colleague letter regarding the climate impacts of the budget resolution click HERE.

For the summary of the House budget resolution click HERE.

• For the text of House Resolution advancing the bipartisan infrastructure agreement, the Senate budget resolution, and H.R. 4 the John R. Lewis Voting Rights Advancement Act of 2021 click HERE.

For Sen. Ron Wyden’s (D-OR) proposals for tighter tax rules on partnerships and an excise tax on stock buybacks click HERE.

• For the text of Sen. Wyden’s proposals click HERE.

Markups

For the summary of the House Ways and Means Committee markup of the Build Back Better Act click HERE.

• For a memorandum on the markup click HERE.
• For legislative recommendations on Universal Paid Family and Medical Leave click HERE.
• For legislative recommendations on Retirement click HERE.
• For legislative recommendations on Child Care Access and Equity click HERE.
• For legislative recommendations on Trade Adjustment Assistance click HERE.
• For legislative recommendations on Health Careers click HERE. On Elder Justice click HERE. On Skilled Nursing Facilities click HERE. On Medicare Dental, Hearing, and Vision Coverage click HERE.

For a summary of the House Committee on Energy & Commerce markup of the Build Back Better Act click HERE.

• For a memorandum on the markup click HERE.
• For legislative recommendations on Air Pollution click HERE.
• For legislative recommendations on Hazardous Materials click HERE.
• For legislative recommendations on Drinking Water click HERE.
• For legislative recommendations on Energy click HERE.
• For legislative recommendations on Drug Pricing click HERE.
• For legislative recommendations on the Affordable Care Act click HERE.
• For legislative recommendations on Medicaid click HERE.
• For legislative recommendations on CHIP click HERE.
• For legislative recommendations on Medicare click HERE.
• For legislative recommendations on Public Health click HERE.
• For legislative recommendations on Next Generation 9-1-1 click HERE.
• For legislative recommendations on Wireless Connectivity click HERE.
• For legislative recommendations on Distance Learning click HERE.
• For legislative recommendations on the Manufacturing Supply Chain click HERE.
• For legislative recommendations on FTC Privacy Enforcement click HERE.
• For legislative recommendations on the Department of Commerce Inspector General click HERE.

For the text of the House Science, Space, and Technology Committee print containing legislative proposals click HERE.

• For an amendment in the nature of a substitute offered by Chairwoman Eddie Bernice Johnson (D-TX) click HERE.

For the text of the House Natural Resources Committee print containing legislative proposals click HERE.

• For the notice of the markup to be held on September 9 click HERE.

For the text of the House Committee on Small Business print containing legislative proposals click HERE.

• For the notice of the markup to be held on September 9 click HERE.
• For an amendment in the nature of a substitute offered by Chairwoman Nydia Velázquez (D-NY) click HERE.

For the text of the House Committee on Education & Labor print containing legislative proposals click HERE.

• For an amendment in the nature of a substitute offered by Chairman Bobby Scott (D-VA) click HERE.

For the text of the House Agriculture Committee print containing legislative proposals click HERE.

• For a summary of the proposals click HERE.

Letters

For a letter from Democratic governors supporting the budget reconciliation bill click HERE.

For Senator Joe Manchin’s Opinion piece calling for a strategic pause on spending click HERE.

For a letter from Democrats calling for increased support for biofuels click HERE.

For a letter from House Democrats supporting the Polluter Pays Climate Fund Act click HERE.

For a letter from Rep. Stephanie Murphy (D-FL) and Rep. Henry Cuellar (D-TX) rejecting deficit spending except on climate policy click HERE.

For a letter from House Democrats supporting an array of international tax provisions see HERE.

For a letter for Senate Majority Leader Chuck Schumer on the environmental benefits of the infrastructure bill and reconciliation bill see HERE.

For an endorsement of the environmental provisions from a coalition of environmental groups see HERE.

 

IN THE NEWS

Report: Oil, Gas Companies Reducing Flaring – API's Environmental Partnership said Thursday that member oil and natural gas companies managed to halve flaring intensity to 0.66% of oil and gas production in 2020, down from 1.31% of 2019 total production. "Collectively, the companies diverted 171 Bcf of gas from being flared, effectively mitigating 9.4 million metric tons of emissions on the carbon dioxide equivalent basis.  In 2020, The Environmental Partnership launched its latest environmental performance program, which is focused on reducing flaring of associated gas in oilfield operations. As part of the flare management program, companies are advancing best practices to avoid flaring and minimize emissions. To gauge progress, participants in the program have committed to report data to calculate flare intensity, a measurement of flare volumes relative to production. Participants reported a 50 percent reduction in flare volumes from 2019 to 2020, even as oil and natural gas production remained consistent among participating companies. This progress underscores the industry’s commitment to advancing best practices to reduce flare volumes, promoting the beneficial use of associated gas and improving flare reliability and efficiency.

What is it Showing – Here a few more detailed highlights from the annual report:

• Reducing Flaring: Flare volumes reduced more than 50 percent from 2019 to 2020, even as oil and natural gas production remained consistent among participating companies. Participating companies reduced the gas flare intensity of their operations 3.04 percent in 2019 to 1.49 percent in 2020. More than 171,000,000 MCF of flare gas was avoided or diverted from flaring for beneficial uses. 
   
• Implementing Leak Detection and Repair Program: More than 430,000 surveys were conducted across more than 85,000 production sites. The surveys found that of the more than 235 million component inspections performed, only 0.04 percent needed repair.
   
• Replacing Pneumatic Controller Program: More than 970 high-bleed pneumatic controllers have been replaced, retrofitted or removed from service by the companies participating in the program – a significant step to reducing GHG emissions. Notably, 54 participating companies in the program reported they suspended use of high-bleed pneumatic controllers in their operations. The partnership expanded this program to address emissions from all gas-driven controllers, not just high-bleeds, leading to the removal of more than 9,200 additional gas-driven controllers and installation of more than 2,700 zero-emission controllers.

Methane Fee Gets Cold Shoulder from Business, Industry, Labor Groups – A new letter from more than 130 oil and gas trade, manufacturing, business and labor groups pushes back on the proposed Methane Fee in the recent Budget Reconciliation legislation.  The groups warned of adverse economic impacts from the plan and argue methane emissions are already being mitigated through regulatory programs and industry efforts, which EPA is about to roll out.  The letter also adds that the measure has never been debated on in a congressional committee and unintended and adverse environmental and economic consequences have never been assessed or considered.  See the Letter HERE.

Metals Company Steps up to Address Critical Mineral Challenge –DeepGreen Metals, Inc., an explorer of lower-impact battery metals from seafloor polymetallic nodules, and Sustainable Opportunities Acquisition Corporation (SOAC), a SPAC with a dedicated ESG focus, have completed their business combination to create TMC the metals company Inc. (“The Metals Company” or “TMC”).  The transaction was completed on Thursday.  The combined company will operate as The Metals Company and started trading on the Nasdaq Global Select Market under the new ticker symbols “TMC” Friday.

TX Port will Be CCS Hub – The Port of Corpus Christi, one of the nation's top energy exporting facilities, is working on a project led by Talos Energy to capture emissions in the Port area and sequester offshore in the Gulf of Mexico. Offshore carbon dioxide sequestration is gaining traction following a recent announcement for a new project site off the shore of Beaumont and Port Arthur, Texas which says it will be able to sequester 225-275 million metric tons of carbon dioxide.

ON THE SCHEDULE THIS WEEK

MOST EVENTS SCHEDULED ARE NOW ONLINE WEBINARS

Forum to Discuss Methane Regs – As the EPA prepares to regulate methane emissions, the AAAS Center for Scientific Evidence in Public Issues hosts a forum today at 2:00 p.m., to learn more about policy approaches from researchers, practitioners and engineers. Improved methane monitoring and assessment will speed strategic decision making and innovation to reduce methane emissions. Noted experts and practitioners will discuss the scientific evidence that can inform federal, state, regional, and local efforts to mitigate methane emissions and their contributions to changing climatic conditions and to identify the most pressing issues related to potential changes in the regulation of methane emissions from the oil and gas industry. This is an interactive event designed to share existing information, surface knowledge gaps, and discuss constraints to the implementation of evidence-informed solutions.

Economist Climate Risk Forum Set – Tomorrow morning 12:30 Europe time 7:30 a.m. ET, The Economist holds its virtual third annual Climate Risk Europe conference. Speakers include SEC Commissioner Allison Herren Lee; Bob Litterman, chairman of the Commodity Futures Trading Commission's Climate-related Market Risk Subcommittee; and Chris Faint, head of climate change at the Bank of England, who will participate in a discussion on regulatory policy.  See the full three-day agenda here.

Forum to Look at Birds in China – The Woodrow Wilson Center's China Environment Forum holds a virtual discussion tomorrow at 9:00 a.m. on birds and biodiversity in China. Speakers at this panel will share stories of bird conservation successes and outline the challenges and opportunities to secure the long-term future of China’s birds.

USEA Looks at Cyber – The US Energy Assn will hold a forum tomorrow at 10:00 a.m. with USAID to share some key tools and resources to improve cybersecurity in the energy sector. This effort culminated in a series of cybersecurity webinars, launched in June 2020, aimed at the utility sector of USAID partner countries working on this issue, or looking at how to get started. Following this 15 webinar series, we added 2 industry panels, and most recently, a handbook, based on the webinars, that identifies an overview of what is available, what is necessary, identifying free resources, potential solutions, and ideas on how to get started. This webinar aims to give an overview of what the handbook offers and how to use it, as well as share some of the specific parts of the handbook that might be a good starting point for cybersecurity efforts.

Forum to Look at Transmission Needs for Clean Energy –The Progressive Policy Institute holds a discussion tomorrow at 10:00 a.m. on improving electricity transmission siting to meet America's clean energy climate goals.  Speakers will include Sen. John Hickenlooper, IBEW’s Donnie Colston, Avangrid’s Bob Kump and ACORE’s Greg Wetstone.

Forum to Look at Food Insecurity, Climate – The Stimson Center holds a discussion tomorrow at 11:00 a.m. on COVID, conflict and climate with a focus on food insecurity.  The forum will focus on an Institute for the Study of Diplomacy at Georgetown University report on the topic in advance of UN meeting next week.

Forum/Report to Look at NY Renewable Targets – The Atlantic Council Global Energy Center and the Energy Innovation Reform Project hold a discussion tomorrow at Noon looking at New York State’s ambitious renewable energy goals and the land use considerations in achieving them. During the meeting, EIRP will release its new report, Ambitious Mandates, Ambivalent Communities: Land Use Challenges to New York’s Renewable Power Goals. Speakers will include our friend Paul Saunders of EIRP, who will be joined by NYSERDA Chair Richard Kauffan and Independent Power Producers of New York head Gavin Donohue.

Forum to Look at Electrification – Penn’s Kleinman Center for Energy Policy holds a forum tomorrow at Noon on the potential and challenges of electrification. Visiting Scholar Lucas Davis will lead a discussion that explores the potential economic cost of an electrification mandate for new homes.

Columbia Starts New Africa Webinar Series – Tomorrow at noon, the Center on Global Energy Policy launches a webinar series focused on climate issues and Africa. The first session of the series will bring together prominent voices from different parts of the continent to explore African priorities in global and regional climate diplomacy; to analyze the historical role played by African states in global discussions, from the Kyoto Protocol to the Paris Agreement; and to identify ways in which African bureaucratic, economic and political realities will intersect with international negotiations in the future.

Forum Looks at EVs – Tomorrow at 1:00 p.m., ICF hosts an engaging conversation on the electrification of vehicles in underserved communities through the lens of utilities, partnering with state and local governments, electrifying public transit, the public health benefits of EVs, and incentives targeted at diverse drivers.  The webinar will explore some best practices for making EV adoption a more attainable reality for greater numbers of people. Representatives from Exelon and Highland Electric will share their experiences in expanding the use of EVs in underserved communities and the Smart Electric Power Alliance (SEPA) will discuss their research into ways utilities across the country can ensure increased EV adoption benefits these communities.  Finally, the Greenlining Institute will provide an overview of the mobility needs within underserved communities and the benefits of EVs, including financial and public health.

AU Forum Looks at Extraction Issues – Tomorrow at 1:00 p.m., the American University School of International Studies Professors hosts a discussion on the origins of this new volume “Our Extractive Age – Expressions of Violence and Resistance” and how the spectrum of violence associated with natural resource extraction permeates contemporary life.

WCEE to Chat with Paula Glover – Tomorrow at 2:00 p.m., WCEE Past President Barbara Tyran will be joined by Alliance to Save Energy President Paula Glover for a fascinating discussion with a national energy leader.

Forum Looks at Older Renewable Projects – Tomorrow at 2:30 p.m., WRISE holds a forum on aging renewables.  The panel will cover how to add value to aging solar and wind projects and how to evaluate end of life and decommissioning issues. Speakers will drill down on repowering, recycling, and life extension opportunities. As the clean energy industry continues to mature and evolve, this topic is increasingly crucial to the growth and success of the industry.

Forum to Look at Congressional Carbon Management Priorities – The Great Plains Institute holds a CO2NNECT event tomorrow at 3:30 p.m. on critical Bipartisan Carbon Management Priorities in Congress. This event will showcase the importance of the economy-wide deployment of carbon management—carbon capture, removal, transport, utilization, and geologic storage—to achieve net-zero emissions by 2050, preserve and sustain high-wage jobs, spur investment, and sustain American technology leadership. There is a huge roster of speakers that includes LA Gov. John Bel Edwards, NM Sen. Ben Ray Lujan, OK Energy/Environment Secretary Ken Wagner, Boilermakers Cecile Conroy and Lee Beck of the Clean Air Task Force.

Senate Enviro to Move EPA Nominees – On Wednesday at 9:30 a.m., the Senate Environment Committee will hold a business meeting and hearing on EPA nominees.

New Report Looks at Transmission Challenges – In a webinar on Wednesday at 10:00 a.m., the Clean Air Task Force and the Niskanen Center have a new report finds that the current piecemeal, project-by-project approach to expanding U.S. electricity transmission won’t get clean energy infrastructure built fast enough to decarbonize in the years to come. Instead, it calls for a new system to rapidly scale capacity, potentially establishing a National Transmission Organization that would plan, site, and fund a national grid to ensure that burdens and benefits are fairly shared. During the webinar, CATF’s Armond Cohen and Niskanen’s Liza Reed will summarize the report. There will also be a conversation with FERC Chairman Rich Glick and former FERC Chair Neil Chatterjee. 

Climate Event Honors Halstead – On Wednesday at 11:00 a.m., the Climate Leadership Council hosts the inaugural event in honor of the late policy entrepreneur and founder of New America and CLC Ted Halstead. This new event series will bring together business, environmental, and political leaders to discuss the most relevant climate policy topics of the day and explore opportunities for lasting solutions. This fall could be the most consequential period for major climate action, ever. The tribute to Ted Halstead will feature a discussion with distinguished former officials from three administrations on how Congress and the Biden administration might meet this moment to achieve lasting climate progress.

Forum to Look at Federal Land Policy – On Wednesday at 1:00 p.m., ConservAmerica holds a timely conversation on federal land protection policy and the importance of striking a balance between protecting special places for future generations and respecting states' rights, private property, and individual freedom. Speakers include our friends Nick Loris of C3 and former Senate Energy CoS McKie Campbell, as well as King Cove, AK City Administrator Gary Hennigh, Washington State DNR official Todd Myers and PERC Policy Director Hannah Downey.

Hill Forum Continues Truck Emissions Discussion – In the final installment of its three-part electric truck series, The Hill will bring together lawmakers and business leaders on Wednesday at 1:00 p.m. to discuss the future of zero-emissions trucks for shippers and fleets. Speakers will include Sen. Ron Wyden, Rep. Garret Graves, IKEA’s Steven Moelk, FedEx Express’ Russell Musgrove, CALSTART’s Jimmy O'Dea and several others.

Forum Focuses on Green Hydrogen – American Clean Power hosts a forum on Wednesday at 1:30 p.m. on Green Hydrogen.  This session will bring together representatives from across the renewables sector and policy environment to discuss what it takes to boost the U.S. green hydrogen indust