Welcome to your Friday Rundown, for the week ending Feb. 8. I’m your driver, ClearPath Communications Director Darren Goode. Anything we missed? Let me know at goode@clearpathaction.org. Thanks for reading. Special thanks and credit to the Council on Competitiveness for the great Senate panel photo!
CLEARPATH TESTIFIES ON PRAGMATIC CLIMATE PLAN
ClearPath Founder Jay Faison and Executive Director Rich Powell, testifying respectively before two key congressional panels this week, stressed bipartisan and sensible solutions to climate change through the expansion of U.S. clean energy technologies and innovation.
“Climate change is an urgent challenge that merits action at every level of government and the private sector [and] deserves a pragmatic and technology-inclusive agenda to make the global clean energy transition cheaper and faster,” Rich told the House Energy and Commerce Committee Wednesday. “Let’s not rush toward any impractically hasty, exclusively renewable strategy in the U.S. that will be both costly and unlikely to reduce global emissions.”
He added that if supporters of the Green New Deal “truly believe climate change is an existential threat, they should focus on policies that reduce global emissions as quickly and cheaply as possible.”
Former Energy Secretary Ernest Moniz echoed the same sentiment at the Senate hearing, which is also detailed in a new report he and IHS Markit Vice Chairman Dan Yergin co-authored.
Rich talked to Rep. Buddy Carter (R-Ga.) about how the future of nuclear power will be reactors that are “much smaller, less capital intensive and more flexible.” That includes small modular reactors being developed by NuScale Power and microreactors from Oklo and others.
Rich said last Congress didn’t get the credit it deserves for boosting clean energy technologies, while noting that “moonshot” clean energy innovation goals, stronger financing and other incentives and removing regulatory barriers are among what’s needed to increase the pace and ambition of our climate efforts.
Early on in the hearing, Walden summed up the position of many of his fellow panel Republicans heading into the climate and clean energy debate this Congress. “Climate change is real. The need to protect the environment is real. The need to foster a strong U.S. economy and grow American jobs is also real,” he said. “The Republicans on this committee are ready and willing to have serious, solutions-oriented discussions about how to address and balance these considerations.”
Rich and Rep. Cathy McMorris Rodgers (R-Wash.) talked about how hydropower is one of the most valuable forms of renewable power thanks to its high capacity, flexibility in scaling up and down and as a major energy storage solution and must be a central part of a climate agenda.
Rich and McMorris Rodgers also discussed how grid-scale energy storage is “far more than just batteries,” and includes pumped hydro, heat and other technologies that should be given a chance to be targeted by “very aggressive goals” and performance milestones. “I share ClearPath’s goals to expand energy storage,” McMorris Rodgers said.
In an exchange with Sen. Cindy Hyde-Smith (R-Miss.), Jay noted that China doesn’t make distinctions between basic and applied energy research. “They’re focused on outcomes,” he said. “We need to look for outcomes and then plug the holes we have in technology development so that we can compete with the Chinese.”
A prime example of this Chinese commercialization and development advantage is the case of the lithium ion battery company A123 Systems, which was bought by the Wanxiang Group after declaring bankruptcy despite spending $129 million of a $249 million Department of Energy grant. “We do a great job in the basic research” but companies eventually go to market without incentives or financial support, Jay said. “They’re kind of out on their own, they declare bankruptcy and the Chinese buy them for cheap and scale them up,” he added. “That’s been a pretty consistent happening and I think that’s something we need to fix.”
Jay and Rich stressed the global nature of the problem. “The expected emissions growth from developing Asian countries alone would offset a complete decarbonization of the U.S. economy by mid-century,” Rich noted. “We have a choice – bet that the Chinese and Indians will close recently-built plants at the expense of economic growth OR develop, demonstrate and export U.S.-based emission control technology,” Jay added.
“Technology is the genie you can’t put back in the bottle,” Rich told Rep. David McKinley (R-W.Va.). “Political will for climate solutions will come and go … but technology will last.”
Senators Thursday introduced two bipartisan plans to bolster carbon capture technologies.
Senate Environment and Public Works Chairman John Barrasso (R-Wyo.) and Sen. Sheldon Whitehouse (D-R.I.) led the reintroduction of the USE IT Act, which aims to make carbon dioxide pipelines and other infrastructure projects eligible for streamlined permitting.
Other cosponsors are Republicans Shelley Moore Capito (W.Va.), Kevin Cramer (N.D.) and Mike Enzi (Wyo.), EPW Ranking Member Tom Carper (D-Del.), Energy and Natural Resources ranking member Joe Manchin (D-W.Va.) and fellow Democrats Tina Smith (Minn.) and Tammy Duckworth (Ill.).
RICH POWELL’S TAKE
“The bipartisan USE IT Act is a common-sense approach to supporting carbon capture technologies, including necessary pipelines and other infrastructure, enhanced public-private partnerships, innovative R&D and permitting improvements. It is a strong and necessary step in enabling market-driven carbon capture and realizing its benefits for American consumers.”
Sens. John Hoeven (R-N.D.) and Smith Thursday also led the introduction of the Carbon Capture Modernization Act, which would modify the 48A tax credit to encourage more carbon capture at coal facilities.
The bill is also cosponsored by Cramer, Manchin, Barrasso and Sens. Jon Tester (D-Mont.), Lindsey Graham (R-S.C.) and Steve Daines (R-Mont.).
RICH’S TAKE
“The bipartisan Carbon Capture Modernization Act is an important tweak to the tax code that will propel critical investments into carbon capture infrastructure and projects. It is another example of where both parties can come together this Congress on sensible solutions that safeguard domestic energy while reducing emissions.”
DOMESTIC ADVANCED NUCLEAR FUEL PRODUCTION PLANNED
Urenco USA, the only uranium enricher currently operating in the U.S., announced they will begin planning for high assay low enriched uranium (HA-LEU) production. There is no commercial supply of HA-LEU in the U.S. right now, but it is essential for most advanced reactor companies.
This follows on the heels of a new interim HA-LEU supply from DOE and a new contract between DOE and Centrus for pilot-scale HA-LEU production in Ohio. More competition in HA-LEU development will lead to lower costs and a better marketplace for advanced reactors.
BUSINESSES ARE STEPPING UP TO THE CLIMATE CHALLENGE
Jay and Rich at their respective hearings also highlighted how heavy industries are beginning to step up to the climate challenge.
That includes Xcel Energy’s recently announced plan to reduce its carbon emissions 80 percent by 2030 and be carbon-free by 2050, the most ambitious plan yet from a major U.S. investor-owned utility.
They are blazing a path for other utilities, but importantly, they are acknowledging that the end-goal will require new ideas and innovation that likely impact and involve all energy sources. They will need a blend of resources to ensure flexibility, dispatchability and affordability for their customers.
They also noted that Southern Company, Shell, BP (and now Chevron) are among major utilities and oil and gas companies are responding to the challenge, including linking bonuses and other pay for senior executives to the success of their respective carbon-reduction goals.
THE PATH AHEAD
WEDNESDAY ClearPath and the Department of Energy co-sponsor an Atomic Wings Lunch & Learn on “The Value Proposition for Advanced Nuclear: Clean Energy, Economics and Safety.” Speakers include those from the U.S. Nuclear Industry Council, GE Hitachi, Terrestrial Energy, Kairos Power and Third Way. RSVP
