Sep 17: Special Energy Update

Friends,

Hey, just a quick few items today starting with an important charity event tonight at 8:30 p.m. when the National Brain Tumor Society (NBTS) hosts their first ever virtual benefit concert as part of Childhood Cancer Awareness Month. They are teaming up with Denver-based, nationally acclaimed artist Mike Massé who will perform some of the best classic rock songs of all time.  The event will be fun and an easy way to support children and families fighting cancer.  Click here to learn more about the event and how you can tune in.

Call will questions…Frank Maisano 202-997-5932

1) DOE to Host Natural Gas Summit – Today starting at Noon, DOE will host the 2020 Natural Gas Summit at DOE Headquarters and virtually. The Summit will be comprised of two panels and feature Director of the White House National Economic Council Larry Kudlow, Secretary Brouillette, other DOE officials, U.S. gas industry leaders, and global LNG market representatives.  Our friend and AGA CEO Karen Harbert will join the first panel that will focus on the importance of domestic natural gas production to U.S. energy jobs, affordability, and reliability. The second panel will focus on the growing opportunity for U.S. LNG in global markets, enhancing international energy security to American allies around the world.

2) AL Power, Partners at Southern Company Restoring Power After Hurricane Sally – Southern Company system resources were safely responding yesterday after Hurricane Sally made landfall as a Category 2 storm before daybreak near Gulf Shores, Ala., delivering significant damage that left hundreds of thousands without power along the Gulf Coast. Alabama Power and Mississippi Power customers were among those whose power was impacted by the eighth named storm to make landfall so far during this year’s Atlantic hurricane season. As of 11 a.m. CDT, Alabama Power was reporting some 160,000 outages. Mississippi Power reported about 1,600 outages by 8 a.m. local time, down from around 2,500 an hour earlier as restoration work continued.

Mississippi Power crews were responding to outages, primarily in Jackson County. On Tuesday, Mississippi Power crews had safely restored power to around a thousand customers who experienced sporadic outages as the storm approached the coastline. Once its restorations were complete, Mississippi Power was prepared to assist Alabama Power in restoring power to its customers. Likewise, Georgia Power is also providing resources as needed as part of the system’s collaboration to quickly restore power to all customers who can safely receive it.

Sally made landfall with sustained winds of 105 miles per hour, bringing torrential rain and the threat of catastrophic flooding. The storm's slow churn forward is expected to continue through the day and could dump as much as 35 inches of rain across parts of Alabama and the Florida Panhandle. The central regions of Alabama and Georgia could eventually see rain totals of 4 to 12 inches. Resources across the system had prepared ahead of the storm to begin restoring power as soon as it was safe to do so.

Sally’s hydro impact

Among expected impacts to system hydro assets from Sally’s heavy rains are Alabama Power lakes from Lay Dam to Jordan Dam on the Coosa River and from Harris Dam to Thurlow Dam on the Tallapoosa River. Spillway gate operations can be expected at these dams, as well as Jordan Dam on the Coosa and Martin and Yates dams on the Tallapoosa. Because of uncertainty about the precise inland path of the storm and local precipitation amounts, other Alabama Power lakes and hydro facilities in Georgia also could be affected. Currently, Georgia Power Hydro is monitoring weather conditions related to Sally and will open spillway gates as necessary. Even with Georgia Power currently releasing water from lakes where possible, it’s likely that the runoff created by this storm may last for days and will require spillway gate operations. During rain events, engineers evaluate conditions to project peak lake levels and spill conditions and share that information with the public. Individuals with boats and other water-related equipment and facilities should pay close attention to the storm, stay alert to changing conditions and be prepared to take the necessary steps to protect their property.

Those responding to Hurricane Sally continue to follow measures aimed at keeping workers safe from the coronavirus. The protocols enable the system and industry to respond safely during the pandemic to keep the lights on and gas flowing.  You can see regular updates HERE.

3) McKinley-Schrader Release Language to Bipartisan Climate Change Legislative – Today, Reps. David McKinley (R-WV) and Kurt Schrader (D-OR) are releasing the legislative language for their long-term climate legislative proposal.  They expect to introduce the legislation sometime later this year.  This is a groundbreaking, bipartisan approach that allows both parties to stay true to their principles and core values while delivering superior environmental and energy policy outcomes.  They outlined this in an opinion piece in the USA Today’s Hidden Common Ground Section by Reps. McKinley and Schrader that urges a new, more politically-reasonable legislative approach.  I can provide you the draft legislative language if you want to see it.

You can discuss this with McKinley and Schrader, they are willing to give you the details:

McKinley:            Allie Hildebrand                 Allie.Hildebrand@mail.house.gov

Schrader:              Parker, Larkin                      Larkin.Parker@mail.house.gov

Also, feel free to reach out to Chairman Pallone who I’m told by E&C staff will offer his perspective on the McKinley-Schrader effort. To reach Pallone, you should call Andrew Souvall, the E&C majority press person.

What They’re Saying about the McKinley-Schrader Discussion Draft

NRDC: https://www.nrdc.org/experts/ben-longstreth/promising-bipartisan-movement

“The McKinley-Schrader proposal marks an important milestone along the road to developing climate legislation.  It is a bipartisan effort that wisely addresses roles for both forward-looking energy innovation policy and for regulatory authority as needed.  EnergyForward is committed to clean-energy transition and the technological breakthroughs needed to make it a reality.  We look forward to working with Mr. McKinley and Mr. Schrader as they refine and advance the bill.”

—Scott Segal, director, EnergyForward and partner at Bracewell LLP.  EnergyForward is a coalition of utilities that includes Ameren, Duke, DTE Energy, Southern, Salt River Project and Vistra.

“Representatives McKinley and Shrader have developed a thoughtful and bipartisan approach to tackling a key element of our climate challenge. Investments focused on innovative technologies for in clean energy coupled with the certainty of a clean energy standard, stand to move the power sector toward net zero emissions. Significant investments in technology and infrastructure would help rebuild and grow the U.S. economy, while its clean energy standard would help put us on pathway to carbon neutrality. Representatives McKinley and Shrader are to be commended for building a bipartisan bridge that is essential for the creation of durable climate policies.”

               —Bob Perciasepe, President, Center for Climate and Energy Solutions

“American Electric Power (AEP) commends Representatives David McKinley and Kurt Schrader for proposing legislation that focuses on technological and regulatory innovation to address climate change. The draft legislation supports clean energy technology development, including an all-encompassing program for the demonstration and deployment of carbon capture, utilization and storage (CCUS), combined with a new federal regulatory framework that requires low- and zero-emitting generation. The transformation of the electric power sector is important for our nation as part of an effort to achieve economy-wide clean energy objectives by 2050.”

               — American Electric Power

 “The scientific evidence is overwhelming that we must rapidly reduce our greenhouse gas emissions to net-zero. Effectively combatting the climate crisis will require significant deployment of both clean energy technologies and natural climate solutions, as well as a solid regulatory structure to provide a predictable framework for power producers to achieve emission reductions. We appreciate the leadership of Reps. McKinley and Schrader to develop this bipartisan, innovative approach to cutting energy sector climate pollution, and we look forward to working with them and other climate and energy leaders to create durable, equitable policy solutions that meet the urgency of the climate crisis.”

               —Collin O’Mara, president and CEO of the National Wildlife Federation

“As one of our nation’s largest energy providers, Duke Energy is committed to taking a leadership role in addressing the serious issue of climate change. Building on our significant progress of reducing CO2 emissions by 39% below 2005, we continue to work toward our ambitious goal of net zero carbon emissions by 2050. Doing so while maintaining affordability and reliability for our customers is critical, particularly as we work with our customers and communities through this challenging time. 

“Bipartisan efforts like this are critical in helping our industry deliver a clean energy future for all Americans. While Duke Energy understands and respects that there are different perspectives on how to achieve this future, we applaud Rep. McKinley and Rep. Schrader for their leadership on such a critical issue, and we remain committed to engaging in efforts that help develop a path forward.”

—Tom Craig, Vice President of Federal Government Affairs, Duke Energy

“ACEEE is supportive of the McKinley-Schrader effort as it seeks to advance innovation while providing a backstop that ensures that substantial greenhouse gas emissions reductions take place. We appreciate how this bill includes a number of energy efficiency provisions and look forward to working with the sponsors to build upon these provisions going forward.”

—Steve Nadel, Executive Director, American Council for an Energy Efficient Economy (ACEEE)

“The fastest path to an affordable, reliable, decarbonized electricity system will include nuclear energy alongside wind, solar, and energy storage. Therefore, any policy focused on reducing emissions must support the long-term operation of our nation’s 94 nuclear power reactors by appropriately valuing the emissions-free attributes of nuclear energy.

“Establishing technology-neutral policies and investing in low-carbon technology innovation would foster a level playing field for all clean energy generators, including nuclear energy. We are therefore grateful that Representatives McKinley and Schrader have developed draft legislation that would both support the nuclear reactors we operate today and accelerate the deployment of potentially game-changing new nuclear technologies to power a cleaner energy future.”

—Maria Korsnick, president and CEO, Nuclear Energy Institute

“Reps. McKinley (R-WV) and Schrader (D-OR)’s proposal is an encouraging step forward for federal energy and climate policy. Notably, the proposal combines immediate clean energy innovation programs with long-term national decarbonization targets for the power sector. We look forward to working with Congress to advance this important bipartisan effort.” 

—Sasha Mackler, Bipartisan Policy Center Energy Project 

“For more than a century, Southern Company has been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. We continue our industry-leading research and development, focusing on technologies that benefit customers and lower greenhouse gas emissions.  Representatives McKinley and Schrader have come together with a pragmatic approach for investment in clean energy innovation and infrastructure development.  We appreciate the opportunity to engage in stakeholder outreach and agree technology innovation is the solution to continued decarbonization for the economy.”

—Melissa H. Horton, Southern Company

 

McKinley-Schrader Discussion Draft Key Points - Innovate and Regulate: A Bipartisan Solution

The McKinley-Schrader proposal is the most significant bipartisan legislative partnership for clean energy & climate policy in Congress today. This proposal is a politically pragmatic approach to decarbonizing the power sector while addressing the issues that have prevented progress to date.

Rep. David McKinley (R-WV) and Kurt Schrader (D-OR) are respected senior members of the House Energy & Commerce Committee, and their sponsorship of this proposal means it should receive serious consideration by both parties.

McKinley-Schrader would establish a durable framework for the modernization of the power sector over the next 30 years, eliminating air pollution while increasing American economic competitiveness. Their proposal invests heavily in innovation and clean energy infrastructure while establishing a long-term regulatory framework for utilities, investors, and entrepreneurs.

It would virtually eliminate all air pollution from the power sector by midcentury while positioning America to be a global leader in clean energy technology markets and solutions to global emissions.

McKinley-Schrader recognizes that decarbonization requires both innovation policy and regulatory measures, and that these tools must be synergistically sequenced so utilities can retire inefficient, polluting generating stations and replace them with proven, cost-competitive alternatives from the full range of fuel sources.

McKinley-Schrader proposes a transition from a Clean Air Act-based approach to power sector CO2 emissions—one that has been highly contested (legally and politically) and ineffective—to an energy policy-driven approach that integrates emissions reductions with the broad range of energy policy goals (affordability, reliability, resilience, economic competitiveness and national security), bringing to bear a range of energy policy tools such as resource planning that are not available under the Clean Air Act. At the same time, McKinley-Schrader preserves the Clean Air Act as a fallback mechanism if needed; the Act’s authorities over power sector CO2 emissions are not eliminated, merely held in abeyance as long as McKinley-Schrader is effective.

Key features of McKinley-Schrader include:

Innovation:

1. Invests in innovation and technology infrastructure to make clean energy affordable, reliable, resilient and secure;
2. Positions the U.S. as a global leader and net exporter of clean energy technologies
3. Facilitates the demonstration of advanced CCUS technologies;
4. Accelerates the transition to advanced nuclear technologies;
5. Provides tax incentives and enhanced R&D for advanced renewables and energy storage and transmission technologies;
6. Promotes energy efficiency; and
7. Protects America’s national security.

Regulation:

1. Established a Clean Energy Standard for the electric power sector that would reduce sectoral CO2 emissions by 80% by 2050, creating a sector that is 95% clean generation by 2050. The first compliance period would begin 10 years after enactment, providing a period of time for innovation and infrastructure investment to reduce the cost of compliance.
2. This would modernizes the energy grid and lower costs for consumers and businesses over time; the cost of compliance is expected to be negative and falling over time.
3. Virtually eliminates all air pollution from the sector; and
4. Prevents the regulation of power sector CO2 emissions under the Clean Air Act as long as the innovation and CES measures are implemented faithfully.
5. Produces much deeper and cheaper decarbonization, more reliably, than is likely under existing law.