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MOST VOTERS DON’T LIKE ELECTRIC CARS, POLL FINDS: “Voters want to make their own decisions about what kind of cars and trucks to buy. And they definitely don’t want to pay for the toys of the rich.” That’s the takeaway from a poll being released Tuesday by the conservative free-market group American Energy Alliance. • Positive, but …: It’s not because they don’t like the technology. In fact, they have a “generally positive attitude” toward electric cars. But 67 percent of voters “are resistant to the idea that they should pay for people to buy electric vehicles,” according to the polling results reviewed by John ahead of the release. That response refers to the tax subsidies and credits given to electric-car purchasers by state and federal governments. • What are the issues? But the problems with electric cars goes beyond subsidies. Nearly in 7 in 10 respondents, or 69 percent, indicated that electricity customers should not be forced to pay for the cars’ recharging stations. Another 72 percent said they “did not trust the federal government to make decisions about what kinds of cars or transportation technologies should be subsidized or mandated.” About 80 percent of the respondents indicated that they prefer to make their own decisions about what types of cars or fuels they should buy and use. • EPA to roll back auto rules: The poll comes as the Environmental Protection Agency is finalizing its proposal to lower fuel economy requirements for vehicles through 2025, which would favor sport utility vehicles and light trucks over fuel-saving cars. With respect to the fuel economy rule, 51 percent of poll respondents “think that it is unfair that those who purchase larger vehicles subsidize those who purchase smaller cars, and less than half (just 45 percent) favor the program.” • Mandate is ‘weak’: “The survey results indicate that support for the CAFE mandate is weak,” said Tom Pyle, president and CEO of the group that did the poll and Trump’s former energy transition chief. “The survey results confirm that, with respect to electric vehicles, most people are unwilling to subsidize the lifestyles of the rich and famous,” he said. Welcome to Daily on Energy, compiled by Washington Examiner Energy and Environment Writers John Siciliano (@JohnDSiciliano) and Josh Siegel (@SiegelScribe). Email [email protected] for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list. COAL ‘BIGGEST LOSER’ IN FUTURE POWER GRID, STUDY FINDS: Coal is projected to be the “biggest loser” of the world’s future power grid, according to a study released Tuesday morning. Coal will represent just 11 percent of global electricity generation by 2050, down from about 38 percent now, Bloomberg New Energy Finance said in its “New Energy Outlook.” At the same time, wind and solar power will produce half of the world’s electricity by midcentury because of rapidly falling costs in producing those sources of energy. “Coal emerges as the biggest loser in the long run,” said Elena Giannakopoulou, head of energy economics at Bloomberg New Energy Finance. “The future electricity system will reorganize around cheap renewables — coal gets squeezed out.” • Bright spot: Solar capacity worldwide will increase by 17 times what it is now, and wind power will experience a sixfold increase. • Power up: The use of renewables will increase, the report says, because of the development of cheaper battery storage technology that can capture and hold wind and solar energy for use during times of the day when the sun isn’t shining and the wind isn’t blowing. Prices of lithium-ion batteries, already down by nearly 80 percent per megawatt-hour since 2010, will continue to tumble, Bloomberg New Energy Finance predicted. • Backed up: The role of natural gas also will evolve by midcentury. Natural gas increasingly will be used to provide backup for renewables rather than to produce around-the-clock electricity. Its share of global electricity is projected to fall from 21 percent to 15 percent by 2050. BIG COAL UTILITIES ON DIFFERENT COURSE THAN TRUMP: Some of the largest coal utilities in the country have different ideas than President Trump about saving money-losing coal and nuclear power plants. • Natural gas switch: Many of them are switching from coal to cleaner-burning natural gas power plants and renewable energy, and they are more concerned about the cost of making the electric grid more resilient than saving ailing power plants. • Decade of change: “At Duke Energy, we’ve been working to lower carbon emissions cost-effectively for more than a decade and we don’t see our overall strategy changing,” said Neil Nissan, spokesman for the North Carolina company, which is the nation’s largest utility and user of coal. • Show us the billions: The company plans to invest $25 billion to modernize its power grid and $11 billion on clean energy, Nissan told the Washington Examiner. • Duke vs. Trump: When Trump ordered Energy Secretary Rick Perry on June 1 to take steps to save coal and nuclear plants, Duke Energy was celebrating the opening of a new 750-megawatt, state-of-the-art combined cycle natural gas power plant. The plant was built on the site of a closed coal plant in Anderson County, S.C. • Trump’s order: The June 1 order by Trump followed a leaked White House memo that spelled out potential actions by the administration to save financially struggling coal and nuclear power plants. The memo argued that the power plants need to be saved as a matter of national security. • Are power plants necessary? Ohio-based utility company American Electric Power said it supports protecting the reliability and resilience of the grid “during the nation’s ongoing transition to a cleaner energy mix,” and supports a process that embraces a “region-specific” planning analysis to determine the “specific resilience challenges that exist and to identify region-specific solutions,” Tammy Ridout, the company’s communications director for policy, told the Washington Examiner. • All of the above: “These solutions may ultimately require generation support, but should not be limited to just generation,” she said. “All options should be considered, including transmission and distribution solutions, which may provide more cost-effective ways to ensure grid reliability and resilience.” PERRY FUNDS CLIMATE MODELING EFFORT: The Department of Energy on Tuesday announced $15 million in funding for 27 projects in atmospheric and ecological sciences in an effort to improve the power of Earth system models to predict weather and climate. “Improving Earth system modeling and prediction capabilities is a critical step in mitigating future risks to the nation’s energy supplies,” said Energy Secretary Rick Perry. “By helping us to better understand our environment, these investments in science will help us maintain a strong energy infrastructure and reliable energy supplies while also ensuring that America remains at the forefront of energy sciences and technology.” CLIMATE CHANGE FIGHTERS TURN TO REPUBLICANS: Groups pushing for legislation to fight climate change are turning to Republicans and conservatives for their support during an election year. • With or without? Their strategy is quite simple. Without Republican support and leadership, there can be no climate policy. • Bipartisan: “We have bet the ranch for years that the only lasting solution is bipartisan, and that therefore you had to have Republican leadership,” said Mark Reynolds, executive director of the nonpartisan Citizens’ Climate Lobby, a 100,000-member grassroots organization whose sole focus is to support a free-market climate policy that the GOP and conservatives can rally around. • Carbon and dividend: The group has been promoting a carbon fee-and-dividend, which some call a carbon tax. The difference is that the climate lobby’s conservative plan is revenue neutral. That means carbon dioxide emitters pay a fee that is collected by the government, but the money — the dividend — goes to the consumer instead of staying in the Treasury. Read the rest of the story in the Washington Examiner magazine here. STATES CREATE ‘GREEN BANKS’ TO PUSH RENEWABLE ENERGY: A group of 16 states and Puerto Rico have started an effort to create “green” banks to finance, underwrite, and develop clean energy technologies. • State alliance: The U.S. Climate Alliance is an initiative led by the governors of California, Washington and New York to counter President Trump’s decision to leave the Paris climate deal. But it’s not a coalition that’s exclusively Democratic. The alliance also includes the governors of Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, Minnesota, New Jersey, North Carolina, Oregon, Puerto Rico, Rhode Island, Vermont, Virginia, and Washington. • Republican states: Govs. Larry Hogan of Maryland, Charlie Baker of Massachusetts, and Phil Scott of Vermont are all Republicans. Only a handful of states in the country have green banks, but most of those that do are represented by the alliance. The group’s green bank initiative, started June 1, is aimed at creating the institutions first in member states, and then moving on to include non-members. • Empire state: New York Democratic Gov. Andrew Cuomo is leading the initiative through the state’s own New York Green Bank, which is seeking to raise $1 billion of private capital to mobilize investment beginning in the Empire State. But that’s only the opening act. Read the article in this week’s Washington Examiner magazine. BUSINESS GROUP TARGETS $1 TRILLION INVESTMENT IN RENEWABLE ENERGY: The American Council on Renewable Energy started a campaign Tuesday morning to attract $1 trillion by 2030 in new private investment in renewable energy and grid technologies. CEO Greg Wetstone announced the initiative at the Renewable Energy Finance Forum-Wall Street, where investors and industry meet to discuss financing for renewables. • Spread the love: The $1 trillion in investment sought by the group would be split between direct private investment in renewable energy and spending on grid technologies, such as energy storage, to help wind and solar be used throughout the day. • Fears of decline: Renewables advocates worry that investment may drop in the early 2020s, when tax credits for the industry phase out. NEARLY $800 BILLION NEEDED IN NEW PIPELINE INFRASTRUCTURE BY 2035: North America will need $791 billion in new pipeline infrastructure by 2035 to meet growing demand for natural gas, according to a report released by the Interstate Natural Gas Association of America Monday. The study, conducted by consulting firm ICF on behalf of the pipeline group, anticipates the need for 180,000 miles of pipeline, including 26,000 miles of new natural gas pipelines. • Big cost: But the study predicts the capital cost of developing the pipelines will increase 75 percent compared to 2016 because of increases in labor and material costs, as well as delayed project approvals. TRUMP’S STEEL TARIFFS THREATEN EXPANSION OF PIPELINES: Don Santa, CEO of the pipeline group, warned Trump’s steel tariffs could threaten the needed expansion. “There is the potential steel tariffs could have a negative impact on the industry and the ability to expand,” Santa told reporters during a press conference in Washington. “It has introduced a significant element of uncertainty.” He said 75 percent of the steel used in pipelines is imported. The study did not address the impact of the 25 percent steel tariffs on imports, because it was conducted before Trump imposed them. MOODY’S ISSUES TRUMP TAX WARNING FOR ELECTRICITY INDUSTRY: Credit rating giant Moody’s is lowering its financial outlook from “stable” to “negative” for utilities not overseen by the federal government, which includes companies in the Southeast and a big part of the West. “This marks the first time the regulated utilities sector has carried a negative outlook since Moody’s began conducting sector outlooks,” a statement from the firm’s analysts said Monday. • Trump’s tax reform is part of the problem: “With federal tax reform and the reduction of the corporate tax rate to 21 percent from 35p percent, utilities will collect less revenue from customers and thus retain less cash,” Moody’s said. Also, the utilities can no longer deduct bonus depreciation, which means that most will start paying cash tax earlier than under the previous law. • More losses coming: “Lowering the tax rate also means that utilities will have over-collected for tax expenses in the past because they charged for future tax expense assuming a 35 percent rate. As utilities refund excess collection to customers, cash flow will be further reduced.” CONSERVATIVE ENERGY GROUP SPENDS $500,000 TO HELP RE-ELECT HELLER: A conservative clean energy group is throwing its support behind Sen. Dean Heller, R- Nev. • ‘No doubt’: “We’re investing heavily in Dean because there’s no doubt he has long been a leader among Republicans in expanding clean energy deployment and innovation,” said Jay Faison, the founder of the ClearPath Action Fund. “He knows it’s good for his constituents and that energy innovation is helping Nevada set the pace for the country and the world.” • Digital ad campaign: “Senator Dean Heller has worked across the aisle in Washington, taking bipartisan action for clean energy technologies that create good jobs in Nevada,” according to the 30-second ad. That action includes leading efforts to streamline clean energy project permitting on public lands. NEW CARBON CAPTURE LEADERSHIP EFFORT CREATED: Carbon Capture Coalition announced a new leadership council to push policy on technologies that reduce carbon dioxide emissions from fossil power plants. • New effort: “The National Carbon Capture Leadership Council becomes the newest national effort to catalyze support for carbon capture and elevate it as a priority on our nation’s political and policy agenda,” the group announced Monday. • First conference: The announcement was made on Monday at the first national leadership conference on carbon capture in Wyoming. Members include some familiar faces on the Washington policy circuit, including: Jason Grumet, president of the Bipartisan Policy Center; Don Gaston, president and CEO of the Prairie State Generating Co.; Vicki Hollub, president and CEO of Occidental Petroleum Corp.; Mike Langford, president of the Utility Workers Union of America; Colin Marshall, president and CEO of the large mining firm Cloud Peak Energy; Bob Perciasepe, president of the Center for Climate and Energy Solutions; and Jonathan Pershing, environment program director for William and Flora Hewlett Foundation. COMPANIES TO STUDY CARBON CAPTURE FOR ETHANOL: At the conference, two companies announced plans to evaluate construction of two carbon capture and storage plants. Occidental Petroleum, and White Energy, a Texa biofuels company, will partner to study capturing carbon dioxide at ethanol facilities in Texas and transport it to the Permian Basin via pipeline. • Use for carbon: Occidental would then use the carbon to increase oil production, a process known as enhanced oil recovery. In the process, most OF the carbon stays buried in the ground. • Extra credit: The companies are crediting their planned joint venture to the recent “45Q” tax credits passed by bipartisan margins in Congress, which give incentives to carbon capture projects. It offers investors, for a period of 12 years, a tax credit of up to $35 per ton of carbon dioxide used in enhanced oil recovery. The study will last six months, and if the project is viable, the carbon capture operations could begin as soon as 2021. HOUSE SCIENCE COMMITTEE LOSES COMMS DIRECTOR: Thea McDonald announced in an email to reporters Monday that she will be stepping down as director of communications for the House Science, Space, and Technology Committee after three and a half years. • Drawing to a close: “My time with Chairman [Lamar] Smith [R-Texas] and the Science Committee has come to a close,” she wrote. “It has been an honor to serve Chairman Smith and to work with all of my excellent colleagues.” • New opportunity: She will be “taking on a new opportunity” this month, to be announced later. “To my reporter friends and press, thank you for working with me in this role, and I look forward to staying in touch,” McDonald wrote. • Bittersweet: “While my departure is bittersweet for me, I know I’m leaving the committee in very capable hands with Bridget Dunn, who will handle all media inquiries until a new communications director is announced,” she added. BRITISH EMBASSY SPOKESMAN HELPING TO PROTECT THE CHESAPEAKE: The press secretary for the United Kingdom will be leading the communications strategy of an effort to protect the Chesapeake Bay. • Britain or bust: Andrew Overton, the British Embassy’s press secretary and deputy head of communications, announced in an email to reporters that he is “very excited” to join the nonprofit Chesapeake Bay Foundation as senior director of communications. • Protecting the environment: The group has a strong track record of protecting and restoring the Chesapeake Bay through national, state, and local education and advocacy, he wrote. • Clean water passion: “I’ve always been passionate about clean water issues — it was the focus of both my bachelor’s and master’s theses,” he said in the email. “And I know that the skills and experience I’ve gained working at the British Embassy will make me a more effective advocate and spokesperson for the environmental protection and restoration when we need it most.” (An office on the beach doesn’t hurt, either.) Overton also oversaw the embassy’s communications on climate change, he told John. • Leaving in the wake of Trump visit: Overton will be starting July 16, “just days after President Trump’s visit to the UK,” he said. ENVIRONMENTALISTS PLAN TO SUE TRUMP HOTEL IN CHICAGO OVER WATER VIOLATIONS: Environmental groups plan to sue the Trump International Hotel and Tower in Chicago for violations of EPA clean water rules. • Intent to sue: The Sierra Club’s Chicago chapter and the Friends of the Chicago River made their intentions clear on Monday in filing their intent to sue. • Hotel’s intake: The court brief says that the hotel’s intake of water from the Chicago River violates the Clean Water Act. • Fish kill: The hotel failed to undertake the necessary testing used to minimize trapping and killing fish in its water intake structures, which is required under the water law. • Repeat offender: “Donald Trump has repeatedly said ‘we want crystal-clean water, and we want clean air — the cleanest ever’ but his hotel has been negatively impacting the Chicago River for years,” said Jack Darin, director of the Sierra Club’s Chicago chapter. GANGING UP ON ZINKE’S GOLD MINE APPROVALS: National conservation groups are helping out local organizations in opposing Interior Secretary Ryan Zinke’s recent approval of gold mining operations near sensitive lands in the California desert. • ‘Short sighted’: “It’s short-sighted, sets a dangerous precedent and we fully support the appeal by Friends of the Inyo to prevent the exploration,” said Brian Sybert, executive director of the Conservation Lands Foundation. The group said Monday that it is supporting the local group’s fight against the Department of Interior’s and Bureau of Land Management’s recent approval of industrial-scale gold mining and exploration on “unique and sensitive public lands” between the Sierra Nevada Range and Death Valley National Park called Conglomerate Mesa. “The California Desert National Conservation Lands represent more than 40 years of management by the BLM, which promised to manage Conglomerate Mesa for conservation and recreation,” Sybert added. “This decision is another example of the administration prioritizing development over conservation of our public lands.” SUPREME COURT TO REHEAR MOOSE-HUNTING HOVERCRAFT CASE: The Supreme Court said Monday that it would rehear a case by an Alaskan hunter who used a hovercraft to hunt moose. • River Sturgeon: John Sturgeon had sued the National Park Service in 2011 who removed him and his hovercraft from Alaska’s Nation River in the Yukon-Charley preserve. The case is coming back to the Supreme Court for a second time after rejecting a lower court’s finding against him. • Lower court’s say: The 9th Circuit Court of Appeals ruled against Sturgeon after rehearing his case, arguing that the park service has the right to determine how to preserve the river, including barring him and his hovercraft. • Fed’s jurisdiction: The case will decide if the federal government has the right to exclude hovercrafts. In the case of Sturgeon, he was in an area of the preserve where state law does not ban the use of such a craft. • Alaskan rights: “Alaskans needed the Supreme Court to take this case in order to secure our right to reasonable access to Alaska’s lands and waters and undo the damage threatened by the 9th Circuit,” Sen. Lisa Murkowski, R-Alaska, chairwoman of the Senate Energy and Natural Resources Committee said Monday. RUNDOWN Bloomberg OPEC faces a bigger problem in Washington than Trump’s tweets Wall Street Journal How a Florida utility became the global king of green power Politico Zinke linked to real estate deal with Halliburton chairman Associated Press Warned 30 years ago, global warming is ‘in our living room’ Reuters EU looks into extending import controls on Chinese solar panels |
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CalendarWEDNESDAY, JUNE 20 10 a.m., 2123 Rayburn House Office Building. House Energy and Commerce Committee Energy Subcommittee hearing on “The Benefits of Tax Reform on the Energy Sector and Consumers.” 10 a.m., 406 Dirksen. Senate Environment and Public Works Committee hearing on William Charles McIntosh to be assistant EPA administrator for international and tribal affairs; and Peter C. Wright to be assistant EPA administrator for the Office of Land and Emergency Management. 10:15 a.m., 1324 Longworth. The Natural Resources Committee will hold a markup on to speed up permits and recover the cost of drilling on federal lands. naturalresources.house.gov/calendar/eventsingle.aspx?EventID=404981 Noon, University Club, 1135 16th St. NW. The American Gas Association holds a discussion with Federal Energy Regulation Commission Chairman Kevin McIntyre. aga.org/events-community/events/natural-gas-roundtable-luncheon-june-2018/ THURSDAY, JUNE 21 10 a.m., 2167 Rayburn. House Transportation and Infrastructure Committee Railroads, Pipelines and Hazardous Materials Subcommittee hearing on “PIPES (Protecting our Infrastructure of Pipelines and Enhancing Safety) Act of 2016 Implementation: Oversight of Pipeline Safety Programs.” |