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week of Oct. 22, 2023

The EnerKnol Week Ahead is back to give you the key energy policy events happening next week, all powered by the EnerKnol Platform. Coming up, the U.S. Energy Department plans a $1 billion demand-side initiative to advance clean hydrogen hubs; the Maryland Public Service Commission considers priority actions and long-term planning for the state's gas utilities; and California reviews the role of long-duration energy storage in achieving carbon neutrality by 2045.

Featured Entities


BLM

BOEM

California EC

District of Columbia PSC

DOE

EIA

Maryland PSC

Minnesota PUC

Federal Agencies

Tuesday,
October 24
BOEM Maryland Offshore Wind Project

The Bureau of Ocean Energy Management will hold a public hearing on a draft environmental impact statement for US Wind Inc.’s proposed Maryland Offshore Wind Project, which could generate up to 2.2 gigawatts of renewable energy. The project includes MarWin and Momentum Wind for which Maryland awarded offshore renewable energy credits in 2017 and 2021, respectively. Marwin is a proposed 300-megawatt wind farm and Momentum Wind consists of about 808 megawatts. In April, Maryland enacted legislation raising the state’s offshore wind generation target to 8.5 gigawatts by 2031. Additional hearings will be held on Oct. 26 and 30. READ MORE

Thursday,
October 26
DOE Clean Hydrogen Hubs Demand-Side Initiative

The U.S. Energy Department is due to receive applications in response to its request for proposals from independent, not-for-profit U.S. entities to support and execute clean hydrogen demand-side support mechanisms. The department is planning a $1 billion demand-side initiative to connect clean hydrogen hubs to prospective purchasers, thereby providing durable demand and sufficient customers. To this end, the department is exploring entering into one or multiple agreements with selected entities to assist in the de-risking of clean hydrogen through demand certainty or other means. These measures are expected to accelerate commercialization of clean hydrogen by providing medium-term revenue certainty to projects affiliated with selected regional clean hydrogen hubs. READ MORE

Thursday,
October 26
EIA Monthly Energy Review

The U.S. Energy Information Administration will issue its Monthly Energy Review, providing data on energy production, consumption, prices, and trade. The share of electricity generated from natural gas is forecast to increase from 39 percent in 2022 to 42 percent in 2023 due to the relatively low prices of natural gas, the retirement of 10 gigawatts of coal-fired generation, and the addition of 5 gigawatts of highly efficient natural gas-turbine capacity, according to the agency’s latest short-term outlook. The agency forecasts that natural gas will supply 41 percent of total U.S. generation in 2024, down from an average of 42 percent this year. This decline is offset by a forecast increase in the share of renewable generation from 22 percent this year to 25 percent in 2024.

Friday,
October 27
BLM Snowy River Carbon Sequestration Project

The Bureau of Land Management is due to receive comments on Denbury Carbon Solutions LLC’s proposal to construct and operate the Snowy River CO2 Sequestration project, a sub-surface pore space in Carter county, Montana. The company has applied for a right-of-way grant to provide land and access for the project to permanently store carbon in up to 100,600 acres. The company also proposes to use 15 well pads to operate underground injection control Class VI wells that would inject carbon dioxide from an existing pipeline to an enhanced oil recovery unit development in Fallon County, Montana. The project follows a BLM policy update issued in June 2022 authorizing rights-of-way for the geologic sequestration of carbon dioxide on public lands.

Eastern Region

Tuesday,
October 24
MD PSC Gas Utility Planning

The Maryland Public Service Commission is due to receive comments on the Maryland Office of People’s Counsel’s petition seeking near term priority actions and comprehensive long-term planning for the state’s gas companies. The petition seeks a two-track proceeding to address the planning, practices, and future operations of gas utilities. The first track, called Transition Track, would establish an investigation to make findings on gas usage reductions, potential rate impacts, and related operational and financial matters caused by the transition to electrification, and issue guidance on regulatory strategies to reduce the costs and risks for gas customers. This would lead to the adoption of regulations governing gas utility transition plans and the commission’s oversight of those plans. The other track, called “Priority Track,” would address priority near-term actions based on the widely accepted fact that gas sales will decline because of electrification technologies that are more cost-effective than continued gas use, and the need to meet the state’s emissions reduction goals. READ MORE

Friday,
October 27
DC PSC Gas Pipeline Replacement Program

The District of Columbia Public Service Commission is due to receive briefs regarding Washington Gas Light Company’s application for approval of the third phase of its PROJECTpipes Plan. The project is a pipeline replacement program to modernize the 1,200-mile natural gas distribution system in the state, in order to enhance system reliability, resiliency, and safety. The first phase of the program ran from June 2014 through December 2020 with a total budget of $141.25 million, and the second phase started in January 2021 and will run until the end of 2023 with a budget of $150 million.

Western Region

Monday,
October 23
CA EC Long-Duration Energy Storage

The California Energy Commission will discuss capacity expansion modeling results from a long-duration energy storage, or LDES, project awarded to the Regents of the University of California, Merced under the Electric Program Investment Charge program. The project team will present their analysis including a summary of recent advancements in available LDES technologies, a presentation of how cost targets for LDES depend on efficiency, and storage durations that would be most beneficial for the state. Previous studies have indicated that greenhouse gas reductions of 90 percent or more in the electricity sector are achievable with current technology, which includes a mix of solar photovoltaics, wind resources – both in-state and out-of-state – and existing energy storage technologies such as lithium-ion batteries and pumped hydro or compressed air. However, reaching a 100 percent emissions reduction goal may require newer technologies, including different types of long-duration energy storage. Legislation enacted in 2018 requires all retail electricity in the state to be supplied by zero-carbon resources by 2045.

Tuesday,
October 24
CA EC Power Source Disclosure Procedures

The California Energy Commission is due to receive comments on proposed amendments to regulations governing its Power Source Disclosure Program. The program was initially authorized by Senate Bill 1305 in 1997. Pursuant to subsequent legislation, the commission adopted modifications in 2019, including a requirement that retail suppliers disclose greenhouse gas emissions intensity for the electricity portfolios they offer. In 2021, the commission initiated pre-rulemaking activities pursuant to legislation that established deadlines for power content label distribution and other regulatory clarifications. Legislation enacted in 2022 requires retail suppliers to report hourly loss-adjusted load and emissions data from 2028 onwards, and the commission must adopt requisite rules by July 2024. The proposed draft regulations aim to implement an hourly accounting methodology and update the annual accounting methodology to calculate emissions of a supplier’s total load, including losses and end uses other than retail sales and display the data on power content labels. 21-OIR-01

Thursday,
October 26
MN PUC Minnesota Energy Gas Rate Plan

The Minnesota Public Utilities Commission will consider Minnesota Energy Resources Corporation’s application for adjustments of retail rates and charges applicable to natural gas services. The WEC Energy Group subsidiary filed a settlement this April, proposing a net incremental revenue increase of $21.242 million, a substantially smaller general revenue increase than the $40.322 million requested in the initial application. The proposed settlement would also reduce the requested return on equity from the original 10.30 percent to 9.65 percent. GR-22-504