Energy Update: Week of September 7th

Friends,

Wow… We are back from August and traffic was not messing around today. It took me two hours to get to the office and with school back in session, football/fall sports underway and voters starting to focus, mid-term elections are on the mind… More voters start to pay attention after Labor Day, early voting gets started, political TV ads become inescapable, volunteers knock on doors and pollsters adjust their samples from “registered voters” to “likely voters.” Just 62 Days to go (that is 9 weeks). 

While we have seen a significant drop in the gas price since July 4^th, expect more with the summer driving season tailing off. The price drop may also be why OPEC+ (which includes Russia) announced on Friday an oil output cut of 100,000 barrels per day for October. The cut will undermine the summer discussions between Saudi Arabi and President Biden and likely encourage a bipartisan group of Congressional members pushing legislation to take action on OPEC anti-trade moves.

And while we are in the rain here on the East Coast, California is facing final blast from the summer heat before fall. Sacramento may reach 115° today, stressing the state’s grid with the electrical load in California reaching as high as 51,000 MW.  That is the highest demand ever seen in the state according to energy officials, as residents face the highest chance of blackouts so far this year. Of course, natgas and nuclear are playing a very important role in keeping the lights on. Now, if we could build some more new transmission in Cali.

We will start in Congress though as it returns from its recess this week with the Senate in tomorrow and the House returning next week. That leaves 18 days for Congress to move a government funding bill by Sept 30^th. Most expect a deal on a stop-gap funding bill to kick this to a lame duck session in late November/early December. The other major news will focus on major questions over a promised vote on permitting reform, part of the deal struck between Senate Majority Leader Schumer and Senate Energy Chair Joe Manchin that was crucial to winning Manchin’s vote for the Inflation Reduction Act. The politics is crazy on this – especially BEFORE the November election – with progressives and their activist allies grumbling for weeks and Republicans blasting it as a political payback scheme. Watch for lots of handwringing and positioning this month, but probably not much action…

In GREAT NEWS for us, Joe Brazauskas is joining Bracewell’s Policy Resolution Group (PRG) as a principal. Joe most recently served as a Senior Counsel on the House Oversight Committee. Previously, he was EPA’s AA for Congressional and Intergovernmental Relations and an Associate Deputy General Counsel at EPA. Prior to that, he was a Subcommittee Staff Director and Senior Counsel on the House Science Committee, where his focus was energy, environment and natural resources. More on this below with quotes…

Finally today, I leave you with another White House Friday 4pm Holiday special release from Friday: Gina McCarthy will depart her White House climate czar post and John Podesta is joining Biden’s team as a senior adviser to oversee the spending from the major climate and clean energy bill that was just enacted.  White House climate aide Ali Zaidi will take McCarthy place. Why can’t they announce that before the holiday weekend!!!

Remember to mark your calendar for November 6^th, two days before Election Day, when COP 27 starts in Egypt.  Call with questions.

Best,

Frank Maisano

(202) 828-5864

C. (202) 997-5932

FRANKLY SPOKEN

“It truly is astounding to realize that a deposit of $3.64 billion will be made in both the Economic Stabilization Fund and State Highway Fund. It is good to know that oil and natural gas companies are using their recent success to fund more research and development, lower emissions technology, and add jobs for more Texans.”

Texas Comptroller Glen Hegar reported Friday that oil production taxes and natural gas production taxes collected by the state during its fiscal year 2022 – which ended Aug. 31 – surpassed $10 billion for the first time in history.

ON THE PODCAST

Looking For the Next Gen Solar Project – In Episode 14 of the Factor This!™ podcast, Terabase co-founder and CEO Matt Campbell shares how his company is using software and automation to redefine how gigantic solar farms get built and are managed. Now in Episode 15 of the Factor This!™, (OUT TODAY) flips the script on recent Factor This! takes on the IRA.  Here, Leyline Renewable Capital's CEO Erik Lensch shares how the legislation will impact the availability and deployment of capital for clean energy projects and raises some concerns about over-promising.

Mason Mornings Talks IRA, Cali Cars, Deep Sea Minerals – On another visit to Sirius XM’s P.O.T.U.S. 124 Mason Mornings, host Julie Mason and I discussed the impacts of the Inflation Reduction Act and my skepticism over California's new proposed ban of gas car sales in 2035.  We also discuss deep sea minerals for EVs being front-page New York Times above-fold news.

FUN OPINIONS

Air Liquide: Hydrogen Future is Bright – In an opinion piece in the Delaware Business Times, Air Liquide North American CEO Adam Peters highlighted DOE Sect Granholm and Labor Sect Walsh recent visit to Air Liquide’s Delaware Innovation Center.  Peters said the signing of the Inflation Reduction Act (IRA) into law by President Biden, the United States is in a stronger position than ever to strengthen its domestic hydrogen market to the benefit of our environment and economy. The energy tax provisions included in the new law send a strong market signal that the United States is serious about hydrogen’s role in driving a clean energy transition, incentivizing continued private sector investment and increased hydrogen production.

NYT Op-Ed: Focus On EVs that Addresses How we Drive – A New York Times’ op-ed by Edward Niedermeyer, an electric car expert and the author of a 2019 book about Tesla, argues that so much emphasis on powerful batteries is misplaced. "Rather than unleashing a mass market of affordable E.V.s, more than a decade of subsidies favoring large batteries has created an overheated market for premium E.V.s," he writes. “A serious electrification policy will have to be tailored to the way we actually drive, not the way we think we do.” He notes the average American motorist drives 40 miles daily and 95% of trips are 30 miles or less saying in an era of battery scarcity, we could have two 150-mile EVs for the battery capacity in every 300-mile EV.

FROG BLOG

RFF Says IRA Can Help Hydrogen Hubs – In a recent blog post, Resources for the Future (RFF) researchers Aaron Bergman and Alan Krupnick write DOE’s recent request for information on how to fund the H2Hubs, policy/policies must bridge the gap between the price of carbon-intensive hydrogen and the presumably higher price of low-carbon hydrogen.  They write the Inflation Reduction Act (IRA) may be the missing ingredient that the H2Hubs need. The IRA creates a tax credit for hydrogen production and a provision that increases the value of the tax credit for carbon capture and sequestration. 

Columbia Blog Focuses on US EV Potential Under USMCA – A new commentary from Columbia University´s Center for Global Energy Policy experts Leonardo Beltran, Diego Rivota and Ivy Kuang looks at the state of EV demand, including overall costs, and surveys the diverse policy routes taken across North America to boost uptake in support of decarbonization targets. It also considers potential opportunities and challenges of greater integration among the three countries through the USMCA (United States–Mexico–Canada Agreement) framework.

FUN FACTS

• Top Countries for EV Sales:

IN THE NEWS

Former Hill/EPA Official Joins Bracewell PRG Team – Joe Brazauskas joined Bracewell’s Policy Resolution Group (PRG) as a principal today. Joe most recently served as a Senior Counsel on the House Committee on Oversight and Reform. Previously, he was the Associate Administrator for Congressional and Intergovernmental Relations at the US EPA. He also was Associate Deputy General Counsel at EPA. Prior to that, Joe was a Subcommittee Staff Director and Senior Counsel on the House Committee on Science, Space and Technology, where his focus was energy, environment and natural resources. Joe says “What attracted me to Bracewell and the PRG team was its reputation in government relations field for innovative and substantive public policy work. I’m really looking forward to getting started on this exciting next phase of my career.”  PRG co-head and Bracewell partner Scott Segal noted that, “Joe’s combination of strong environmental and energy credentials coupled with his substantial knowledge of Congress and administrative law makes him an ideal fit for our group.”  PRG co-head and Bracewell partner Dee Martin observed that, “Joe’s clear understanding of the oversight function of Congress corresponds to significant and growing client needs. As participation in government energy programs gets underway, the need to handle oversight activities will clearly expand. We are thrilled to have Joe on the team.”

MOTORTREND Tests F-150 Electric Pick Up – MOTORTREND, the gold standard for rating vehicles, ran recent tow tests on the Ford 150 Lightning electric pickup, and the results are troublesome.  MT towed 3100-, 5300-, and 7200-pound travel trailers with Ford’s electric truck and didn’t get very far from home. With the largest available battery pack, a fully charged 2022 Ford F-150 Lightning electric truck has less energy onboard than a regular F-150 with four gallons of gas in its tank. Consider how far a combustion-powered F-150 would tow at max capacity on four gallons of regular unleaded. 35 miles? Maybe 40 if you drive slowly? Now that you understand where we're starting from, you won't be as surprised to learn that the towing range of the electric F-150 is dismal. In MotorTrend testing, an F-150 Lightning Platinum saddled with a camper that nearly maxed out its 8,500-pound towing capacity couldn't even cover 100 miles. Range improved when we hooked up a significantly lighter trailer, but not by as much as you might expect.

DOE Urges Refiners to Scale Back Exports – In a recent letter, Energy Secretary Jennifer Granholm urged refiners to limit fuel exports and replenish inventories as East Coast gasoline and diesel supplies hold near historic lows and warned that the administration may step in unless refiners address the issue. "History has shown that federal market intervention has long-term negative consequences for secure, reliable and affordable energy for Americans," said American Petroleum Institute President and CEO Mike Sommers, adding, "The best path to build redundancies for unprecedented events, including hurricanes or global turmoil, is to increase access to American energy." Refineries are operating flat out, as limited by safety and operational constraints. The export talk is at best a distraction; at worst, counterproductive to price and supply. The problem with export restrictions is that the ability to trade in motor fuels actually makes inventory available in the northeast. Northeastern refiners are optimized to take a range of international crudes and distributors take motor fuels from abroad as well. So, interrupting the ability to trade gasoline and diesel into and out of the northeast could be counterproductive for consumers and supplies. Further, the US has recognized the geopolitical significance of energy exports particularly to Europe at a time when Putin is using energy as a weapon. Fostering interdependence with our allies is undermined by discussion of export bans.

US LNG Facilities Running at Full Tilt to Supply Europe – Feed gas deliveries to US liquefied natural gas export facilities topped 11.5 billion cubic feet per day last week, the highest since July 1, and have averaged nearly 11.2 Bcf/d in the past week, according to Platts Analytics, as US exporters race to meet Europe's gas needs amid declining flows from Russia and growing supply uncertainty. Northwest Europe spot LNG import prices broke records for a third consecutive day on Friday, reaching $74.49 per million British thermal units.

Revesz Nominated to OMB Reg Office – President Joe Biden has selected environmental law expert Richard Revesz to lead his regulatory office. Revesz, who founded the think tank Institute for Policy Integrity, has deep experience in environmental law and policy. He has spent years on EPA advisory panels and was in the running to lead the agency before the job went to Michael Regan. Crazily, Revesz has been perceived as the More moderate candidate. How is that Possible?

ON THE SCHEDULE THIS WEEK

Forum Looks at Net Zero – Today at 1:00 p.m., GreenBiz holds the second installment of its four-part webcast series on Accelerating to Net Zero. Companies are looking to translate climate commitments and net zero targets into actionable transition plans, but the state of these plans varies widely. Many organizations are lacking critical information while simultaneously navigating a wide range of evolving standards. This one-hour webcast will explore guidance for net zero transition plans. You’ll discover how companies can pivot their business, strategy and operations to align with a net zero future. Expert speakers will also describe how transition plans communicate your company’s mitigation strategy and can help align internal expectations while driving emissions reductions.

Forum Looks at Ag Innovation – Today at 2:30 p.m., the Atlantic Council’s Global Energy Center, in partnership with the Agriculture Innovation Mission for Climate (AIM for Climate), will host Deane Falcone, chief scientific officer at Crop One, to discuss the company’s approach to sustainable vertical farming. Crop One is a vertical sustainable farming company committed to cleaning up and localizing agriculture. Using groundbreaking technology and high proportions of renewable energy to power operations, Crop One aims to significantly lower its environmental impact. Its model is less resource-intensive, less land-intensive, and less emissions-intensive.

Forum Tackles Federal Procurement, Clean Energy – The Information Technology & Innovation Foundation holds a forum tomorrow at Noon to look at the use of federal procurement to advance national clean energy goals and accelerate innovation. ITIF will release a new report by ITIF board member and former DOD and GSA sustainability leader Dorothy Robyn and hear from leaders inside and outside the federal government on this vital issue. Our friend James Connaughton will speak.

RFF Forum to Look at Fuels Management – Resources for the Future (RFF) holds an RFF Live event on Wednesday at Noon for the first in the Sparking Solutions webinar series, convening a panel of experts from state, federal, and tribal governments to discuss the benefits and challenge of deploying forest fuels reduction strategies at scale.  They will also examine fuels management’s effectiveness and costs, new programs, treatment options, and the relationship to energy and construction product markets.

Forum to Look at German Energy Security – GW’s Security and Sustainability Forum holds an event on Wednesday at Noon to discuss Germany’s hard choice balancing short-term energy needs and long-term security.  The event will feature András Simonyi, former Hungarian Minister to the United States and NATO, who sits down with Christian Democratic Union (CDU)’s shadow minister for energy, Jens Spahn to discuss Germany’s future in the face of war, the Russian energy crisis, climate change, and the implications for the European Union and the Western Alliance.

Forum to Address Energy Storage – The Energy Storage Technology Advancement Partnership and Clean Energy States Alliance holds a forum on Wednesday at 2:00 p.m. energy storage systems.  This webinar features speakers who have developed energy storage projects and can share how they approached the commissioning process, what they learned, and what they would recommend project teams do to help make commissioning run as smoothly as possible.

Senate Environment to Host TVA Noms – The Senate Environment Committee holds a hearing Wednesday at 2:30 p.m. on the nominations of William Renick, Adam White and Joe Ritch to be members of the Board of Directors of the Tennessee Valley Authority.

Forum to Look at 5G Climate Impacts – PunchBowl News holds a virtual discussion Thursday at 9:00 a.m. on 5G's Climate Impact. Punchbowl News founder Anna Palmer will interview Rep. Buddy Carter (R-Ga.) about the impact of 5G on transportation. The conversation is the second in a three-part series sponsored by CTIA exploring the wide-ranging use of 5G technology, especially when it comes to climate change. Joe Moye, CEO of Beep, and Nick Ludlum, SVP & chief communications officer at CTIA, will join Anna afterward for a fireside chat.

Forum Looks at Fair Trade in Global South – KAS and E3G hold a forum on Thursday at 10:00 a.m. on trade issues in the Global South. The event features a discussion on trade and will focus not only trade in goods and services, but also capital flows, i.e., foreign direct investments, but also consider supply chains and threats to the trade system. Experts will discuss how to rethink the understanding of the interdependency of development with trade and climate among other issues.

Forum to Look at Offshore Wind in Latin America – On Thursday at 11:00 a.m., the Inter-American Dialogue looks at offshore wind potential in many areas of Latin America.  This event will explore the potential of offshore wind in the region, the regulatory, technical, and financial conditions needed to capitalize on it, and the government and private sector plans that are already starting to do so.

Web Event to Look at DERs – ICF International holds a forum on Thursday at 1:00 p.m. on distributed energy resources. As more jurisdictions see an increasing uptake of DERs, leveraging these resources and properly analyzing their benefit is becoming a central part of utility planning.

House Resources to Look at Offshore Wind in West – The House Resources Committee holds a field hearing in Morrow Bay, CA on Thursday at 1:00 p.m. to look at offshore wind potential in the West.

DOE Efficiency Forums Set – DOE’s Better Buildings Residential Network hosts a forum on Thursday at 1:00 p.m. looking at advances in insulation for energy efficiency, its implications for human health and the potential of hemp.

Forum to Look at Nigeria, Post Oil – The Carnegie Endowment for International Peace holds a virtual book discussion Thursday at 2:30 p.m. on economic diversification in Nigeria and the politics of building a post-oil economy. The event features Carnegie Africa Program director Zainab Usman and her latest book, Economic Diversification in Nigeria: The Politics of Building a Post-Oil Economy. Usman will give remarks on the challenge of economic diversification in resource-rich Nigeria, followed by an in-depth panel discussion.

WRI Looks at Financing Sustainable Development – On Friday at 8:00 a.m., the WRI Business Center, The Global Impact Investing Network (GIIN) and P4G (Partnerships for Growth) launch their highly anticipated report "Unlocking Early-Stage Financing for SDG Partnerships".  The Global Environment Facility (GEF) CEO Carlos Manuel Rodriguez is among the speakers.

Brookings Looks at Russian Oil Cap – On Friday at 2:30 p.m., the Hutchins Center at Brookings will host Deputy U.S. Treasury Secretary Wally Adeyemo on Friday, Sept. 9 at 2:30 p.m. to look at the latest on the Russian oil price cap proposal and how the US plans to implement it.  Adeyemo’s remarks will be followed by a panel. 

IN THE FUTURE

RFF to look at Power Sector – On Tuesday September 13^th at 2:00 p.m., Resources for the Future (RFF) holds an RFF Live webinar exploring a new RFF and the Clean Electricity Buyers Institute report that examines five pathways toward decarbonization of the power sector. A panel of experts—including lead author Daniel Shawhan and other major contributors to the report—will discuss the emissions reductions and health benefits from each pathway, the monetary benefits and costs for the power sector and energy consumers and the effects on company purchases of green power. NREL’s James Elsworth is among the other panelists.

New Report Looks at Batteries, Clean Energy Supply Chains – The Atlantic Council’s Global Energy Center holds the virtual launch of their new report, Alternative battery chemistries and clean energy supply chains, on Tuesday September 13^th at 4:00 p.m. This public virtual panel discussion, moderated by lead report author and acting director of the Global Energy Center, Reed Blakemore, will discuss the report’s findings, explore the supply chain security implications, and use cases for alternative battery chemistries that can complement the dominant lithium-ion format.

Summit Focuses on Hydrogen Hubs – Infocast hosts a Hydrogen Hubs Summit on September 13^th and 14^th at the Sheraton Pentagon City in Arlington, VA. The Hydrogen Hub: Building a Value Chain will be the first major event where all the communities in the hydrogen hub value chains will come together in one spot to discuss how to launch a new national hydrogen economy. The goals of the Summit are to provide an opportunity to initiate profound conversations between various communities in the value chain and to provide a powerful venue where these communities can fully understand how to build links within the value chain that are necessary to make hydrogen hubs a reality.

CSIS to Discuss G7 Climate Issues – On Wednesday September 14^th at 9:00 a.m., the CSIS Economics Program holds an expert panel discussion on the merits and challenges of a G7 Climate Club. Dr. Steffen Meyer, Director General for Economic, Financial and Climate Policy at the German Federal Chancellery, will kick off the discussion with a brief description of the Climate Club proposal.

USEA Looks at Energy Management Landscape – The US Energy Assn holds a forum on Wednesday September 14^th at 10:00 a.m. to provide an overview of the challenges and opportunities across the energy management landscape. Speakers will present trends and best practices on energy management and provide an overview of the different levels of energy management systems.

Forum to Look at Electric Buses – The World Resources Institute and the Electrification Coalition hold a forum on Wednesday September 14^th at 10:30 a.m. to look at the opportunity for electric buses in Illinois. The event will feature public-sector leaders, industry experts, electric vehicle advocates, and school district representatives. This executive-appropriate online discussion is your chance to engage directly with experts on the latest policy, funding, and technology developments and to help chart Illinois' electric school bus future. Deputy Governor Christian Mitchell and Senator Dick Durbin will share their views on the importance of transitioning Illinois' school bus fleets to electric vehicles and discuss how state and federal programs are paving the road ahead.           

Forum to Look at Reactors – The Center on Global Energy Policy will host a panel of experts on Wednesday September 14^th at Noon to discuss the current international landscape for reactor supply, past financing measures by national governments in support of their reactor exports, and current policy-related issues for US decision makers to consider. DOE Nuclear Asst Sect Katie Huff will speak.

Granholm Headlines Third Way Clean Energy Forum – Third Way is holding an in-person event on Thursday September 15^th at 10:00 a.m. featuring Secretary of Energy Jennifer Granholm on the significant and lasting economic benefits from clean energy innovation driven by American researchers and scientists, manufactured by American businesses and workers, and deployed at home and around the globe.  The investments in the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act will cultivate domestic industries and help America compete within booming global markets for clean technologies. Sec. Granholm will be joined by leaders from the private sector and policy experts to discuss groundbreaking new research by Boston Consulting Group, commissioned by Third Way and Breakthrough Energy, which shows that the industries supporting six clean energy technologies alone could grow by over $60 trillion globally between now and 2050, roughly three times the size of today's US GDP.

Forum to Look at Energy Modeling – The Wanger Institute for Sustainable Energy Research holds a forum on Thursday, September 15^th at 11:30 a.m. looking at new developments in energy modeling, urban transitions, and energy poverty. This symposium consists of three panels: New Developments in Energy Modeling and Data; Urban Energy Transitions; and Energy Poverty - Concepts and Practice.

Forum to Look at Innovation, Infrastructure – On Thursday September 15^th at 56:30 p.m. The Women’s Council on Energy and the Environment (WCEE) and FTI Consulting hold a discussion and an opportunity for in-person networking with some of the key “movers and shakers” in the energy transition space in Washington, DC. The discussion will focus on the innovations needed to make the transition a success, the infrastructure required to underpin these efforts and the impact of all these dynamic changes on our energy system, economy as well as communities. Topics will include efforts to address climate change, energy security, rising energy prices, infrastructure build-out, and new technologies - the energy world is changing before our eyes.

Climate Week NYC –Climate Week NYC will be on September 19-25^th. Climate Week NYC will bring together hundreds of leaders from business, government and civil society to showcase the best climate action and discuss how to do more. But just as importantly, it will explore and confront where the world is still falling short. Climate Group runs a series of events which form the main program of the week. The Climate Week NYC Opening Ceremony and The Hub Live bring together a global audience of senior leaders from business, government and the climate community.

Axios to Look at Houston’s Environment – Axios Local holds a forum on Tuesday September 20^th at 8:00 a.m. at The Astorian to kick off the launch of the Axios Local Houston newsletter, focusing on sustainability efforts and eco-friendly initiatives in the city, from reducing pollution to developing green infrastructure. Houston Chief Resilience and Sustainability Officer Priya Zachariah and enviro justice expert and TX Southern prof Robert Bullard will speak. ACC’s Chris Jahn will also interview Huntsman Corporation CEO Peter Huntsman

FERC’s Phillips Headlines Enviro Conference – NYU Law School’s Institute for Policy Integrity is holding a forum on Tuesday September 20^th starting at 10:00 a.m.  The event discusses the climate and energy landscape with the passage of the Inflation Reduction Act, the West Virginia v. EPA ruling and other recent developments. Speakers will discuss the state of energy policy and environmental justice in the wake of these shifts at a day-long conference during NYC Climate Week. Keynote Speaker is FERC’s Willie Phillips.

Granholm Headlines USEA Forum – The US Energy Assn hold its 4^th annual Advanced Energy Technology Forum on Thursday September 22^nd starting at 9:00 a.m.  DOE Secretary Granholm will offer opening remarks for the conference which will include three panels on national lab issues, infrastructure and academic innovations. Panel one includes expert from NETL, Idaho NL, NREL and Brookhaven, while panel two includes our friend grid infrastructure expert Rob Gramlich. The academic Panel Includes our former Bracewell partner, now that the University of Houston Tracy Hester and MIT’s Robert Armstrong.

National Clean Energy Week Set – Citizens for Responsible Energy Solutions holds the 6^th annual National Clean Energy Week 2022 (NCEW22) on September 26^th to 30^th. NCEW22 is a bipartisan opportunity to celebrate American clean energy innovation. As chair of NCEW, one of my favorite aspects of this week-long celebration has always been hearing from the experts during the NCEW Policy Makers Symposium, which will be held this year from September 27-29^th.