Morning Consult Energy: Energy Dept. to Grant $450 Million for Renewable Energy Projects on Mine Sites




 


Energy

Essential energy industry news & intel to start your day.
April 4, 2023
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Today’s Top News

  • The Biden administration announced $450 million in funding from the bipartisan infrastructure law for turning current and former mine sites into renewable energy developments, which could include advanced nuclear projects and power plants with carbon capture capabilities, Energy Secretary Jennifer Granholm said. (The Hill) Additionally, the administration is set to release final tax credit guidance for clean energy companies’ investments in communities economically tied to coal and oil production, which are eligible under the Inflation Reduction Act for an extra 10% tax credit on top of a 30% tax credit for renewable energy projects. (Reuters)
  • Oil and gas operations in the Gulf of Mexico are releasing more methane emissions than previously estimated, as a study published in the Proceedings of the National Academy of Sciences shows that the climate impacts of the operations are twice that of official estimates. Methane emissions in the region totaled 600,000 metric tons per year, with average methane levels in federal waters three times higher than official estimates while emissions were 13 times higher in state waters. (CNN
  • ConocoPhillips may proceed with the construction of roads and a gravel mine at its controversial Willow oil development in Alaska’s North Slope after a federal judge rejected a request from environmentalists to halt the federal government’s approval of the $7 billion project. U.S. District Judge Sharon Gleason in Anchorage said halting the construction was inappropriate, as the groups would not be irreparably harmed by the construction. (Reuters)
 

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What Else You Need to Know

Politics and Policy
 

Climate law could help EPA justify stronger power plant rules

Jean Chemnick, E&E News

EPA may find it easier to impose tough carbon regulations because of what last year’s sweeping climate law will already cost coal and gas power plants.

 

Groups petition US EPA to force reporting of waste incinerator emissions

Valerie Volcovici, Reuters

Environmental groups on Monday petitioned the U.S. Environmental Protection Agency to require companies to disclose the chemicals discharged from waste incinerators and plants that claim to recycle plastic waste into fuel.

 

Biden trumpets his economic plans in Minnesota after Cummins announces $1 billion investment

Emma Kinery, CNBC

Cummins intends to invest the money in Indiana, North Carolina and New York, focusing on creating low-to-zero-carbon engines.

 
Climate and Enviroment
 

Amazon, despite climate pledge, fought to kill emissions bill in Oregon

Caroline O’Donovan, The Washington Post

Struggling to access enough renewable energy to keep up with its cloud-computing growth in Oregon, Amazon is fighting emissions regulation while turning temporarily to fossil fuels.

 

$9 Trillion Energy King’s Climate Fix Is a Hand-Picked Oil Exec

Akshat Rathi, Bloomberg

Sultan Al Jaber was selected to lead COP28 — the most important climate summit. He also runs the oil and gas behemoth Adnoc.

 

The Endangered Species Act at 50: From popular to polarizing

Michael Doyle, E&E News

The Endangered Species Act came together almost 50 years ago during a bipartisan moment that now seems impossibly remote and almost poignant.

 

What Higher Oil Prices Mean for the Fight Against Climate Change

Will Mathis, Bloomberg

The surge in crude prices after a surprise production cut by OPEC+ countries underscores the danger of relying on unpredictable fossil-fuel producers.

 

Majority-Black town fights to stop land being seized for gravel quarry rail link

Nina Lakhani, The Guardian

Residents of Sparta, Georgia, are trying to stop the Sandersville railroad and its influential owners from building a spur to a quarry.

 

U.S. government rejects coyote protection in Arizona and New Mexico

Jessica Boehm, Axios

The U.S. Fish and Wildlife Service (USFWS) said it won’t prohibit coyote hunting in parts of Arizona and New Mexico where the animals are sometimes mistaken for endangered Mexican wolves.

 

NOAA: Ian was Cat 5 before weakening at Florida landfall

Curt Anderson, The Associated Press

Hurricane Ian briefly reached maximum Category 5 status before weakening to a Category 4 storm as it blasted ashore last September in southwest Florida, eventually causing over $112 billion in damage in the U.S. and more than 150 deaths directly or indirectly, the National Oceanic and Atmospheric Administration reported Monday.

 
Renewables and Nuclear
 

Texas leaders threaten wind and solar boom with legislative push

Justin Jacobs, Financial Times

A renewable energy boom in Texas is under threat at the state legislature, as lawmakers take up new bills that would hobble wind and solar projects.

 

California Grid Needs $9.3 Billion Upgrade in Renewables Shift

David R. Baker and Naureen S. Malik, Bloomberg

California’s power grid operator says $9.3 billion in new projects is needed over the next decade to support the state’s shift to renewable energy and plug-in cars.

 

Vogtle Unit 3 Generates Electricity, Connects to Power Grid

Darrell Proctor, Power Magazine

Georgia Power has announced another milestone for the two-unit reactor expansion at the Plant Vogtle nuclear power site, as Unit 3 on April 1 successfully generated electricity for the first time.

 

Brookfield Is Said to Kick Off Sale of Stake in US Wind Farm

Layan Odeh, Bloomberg

Brookfield Asset Management Ltd. has begun efforts to sell a 50% stake in one of the world’s largest wind farms, according to people familiar with the matter.

 

A green transition will require trillions of dollars. It’ll be a ‘tall order’ to find the cash, but there’s hope

Anmar Frangoul, CNBC

According to the International Energy Agency, clean energy investment will need to hit over $4 trillion a year by 2030 in its Net Zero Emissions by 2050 Scenario.

 

 
Fossil Fuels
 

Controversial pipeline blocked — again — over impact on water quality

Rachel Weiner, The Washington Post

A federal court said the Mountain Valley Pipeline could not move forward in West Virginia.

 

Saudi Arabia’s Oil Production Cuts Reflect Cost of Reshaping Economy

Summer Said and Stephen Kalin, The Wall Street Journal

Riyadh needs to keep prices high enough to fund grandiose gigaprojects.

 

An OPEC-driven U.S. drilling boom? Not so fast.

Shelby Webb, E&E News

The price of U.S. oil climbed more than 5 percent Monday in the wake of plans by Saudi Arabia and other OPEC countries to cut production, raising new questions for the Biden administration and motorists who rely on gasoline.

 

Yellen Says OPEC+ Cut ‘Unconstructive’ as World Fights Inflation

Christopher Condon, Bloomberg

US Treasury Secretary Janet Yellen criticized the decision by OPEC+ oil producers over the weekend to cut output, saying it was “unconstructive” and would add to the uncertainty overhanging global growth.

 

Texas Governor Sees Opening for Shale in OPEC’s Surprise Oil Cut

Mitchell Ferman, Bloomberg

Texas Governor Greg Abbott sees an opportunity for Lone Star State shale drillers to massively boost crude production in light of OPEC’s surprise decision to crimp output.

 

From peak to plummet in 15 years: Coal continues its precipitous decline

Max Graham, Grist

“This is not an economic cycle that is simply going to go away. It is a real phaseout across the industry of the use of coal.”

 

Oil cuts expected to raise gasoline prices, creating headache for Biden

Rachel Frazin, The Hill

The surprise oil production cuts announced by a group of oil producers known as OPEC+ is expected to drive up gasoline prices in the coming weeks, which could create practical headaches for consumers and political headaches for President Biden. 

 
Transportation and Alternative Fuels
 

Lithium Prices Are Down, Cheaper Batteries and EVs Could Follow

Scott Patterson and Amrith Ramkumar, The Wall Street Journal

Key ingredient in batteries has fallen more than 30% after big rally.

 

Biden’s EV Tax Credit Rules Leave Carmakers in the Dark — Again

Keith Laing and Gabrielle Coppola, Bloomberg

Automakers have been waiting for the US Treasury Department to help them figure out which of their cars are eligible for lucrative electric-vehicle tax credits. The Treasury’s response: Keep waiting.

 

Rivian says it remains on track to build 50,000 EVs in 2023

John Rosevear, CNBC

Electric vehicle maker Rivian Automotive said Monday that its first-quarter deliveries were in line with expectations and that it remains on track to produce 50,000 EVs in 2023.

 

EV sector welcomes Treasury’s tax credit guidance as Manchin fumes over sourcing flexibility

Robert Walton, Utility Dive

The Biden administration on Friday issued proposed electric vehicle tax credit rules laying out how EVs will be able to qualify for up to $7,500 in credits for the consumer based critical mineral and battery component sourcing requirements.

 

Tesla ordered to pay $3.2 million to Black ex-worker in US race bias case

Daniel Wiessner, Reuters

A federal jury in San Francisco on Monday ordered Tesla Inc. to pay about $3.2 million to a Black former employee after he won a racial harassment lawsuit against the electric-vehicle maker, far less than the $15 million he rejected last year in opting for a new trial.

 
Electricity/Utilities/Infrastructure
 

Lincoln Power files for bankruptcy after $38.9M PJM charge for failing to run during Winter Storm Elliott

Ethan Howland, Utility Dive

Nautilus Power, another generator Cogentrix Energy manages, on Friday sought Federal Energy Regulatory Commission protection from nonperformance penalties.

 
Land and Resources
 

Companies Can Vie to Mine the Deep Sea Starting in July

Todd Woody, Bloomberg

The International Seabed Authority will accept mining applications as of July 9, despite failing to enact industry-wide regulations.

 

A wet winter won’t stave off the Colorado River’s water cuts

Joshua Partlow, The Washington Post

Interior officials and Senators from river states begin trip to work toward agreement on water cuts.

 
General
 

What Happens to Climate Migrants After the Dust Settles

Linda Poon, Bloomberg

Case studies from Houston, Orlando and Southern Louisiana show how climate migrants struggle after short-term help fades. 

 

The perfect storm: the US city where rising sea levels and racism collide

Susan Crawford, The Guardian

Cross-currents of denialism, boosterism, broken governance systems and deep-seated racism will meet with rapidly accelerating sea level rise

 

Radical eco-activists have made it into mainstream fiction. Is reality next?

Kate Yoder, Grist

History suggests novels about monkeywrenching could inspire real-world copycats.

 







Morning Consult