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week of Aug. 24, 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. Bureau of Ocean Energy Management announces the first wind lease sale in the Gulf of Mexico involving more than 300,000 acres off the coasts of Louisiana and Texas; Washington is set to hold the third auction of greenhouse gas allowances under the state’s cap-and-invest program; and Minnesota regulators consider an application from Summit Carbon Solutions to construct a carbon dioxide pipeline.

Featured Entities


BLM

BOEM

California EC

District of Columbia PSC

DOE

Minnesota PUC

NYSERDA

Washington ECY

Federal Agencies

Monday,
August 28
BLM Oil and Gas Lease Sales

The Bureau of Land Management is due to receive public input on 19 parcels of land for the proposed competitive oil and gas lease sale in North Dakota. The BLM Montana-Dakotas State Office released the assessment consistent with the direction in the 2022 Inflation Reduction Act. The proposed lease sale spans across five counties in North Dakota, totaling approximately 8,061 acres, and includes updated fiscal provisions authorized by the act including a 16.67 percent royalty rate.

Tuesday,
August 29
BOEM Gulf of Mexico Wind Lease Sale

The Bureau of Ocean Energy Management will conduct the first offshore wind energy lease sale in the Gulf of Mexico. The lease area includes a 102,480-acre area offshore Lake Charles, Louisiana, and two areas offshore Galveston, Texas, one comprising 102,480 acres and the other 96,786 acres. The areas have the potential to generate approximately 3.7 gigawatts and power almost 1.3 million homes. The Biden administration has set a goal of deploying 30 gigawatts of offshore wind by 2030 and 15 gigawatts of floating offshore wind energy by 2035. READ MORE

Thursday,
August 31
DOE $25 million Enhancement & Innovation

The U.S. Energy Department is due to receive concept papers on its $25 million Enhancement & Innovation, or E&I, competitive grant, a part of the $3.5 billion allocated to the Weatherization Assistance Program, or WAP, within the framework of the 2021 Infrastructure Investment and Jobs Act. The E&I grant program aims to prioritize environmental and economic benefits for disadvantaged communities. The grant complements WAP, the oldest energy efficiency program in the U.S., to offer competitive funding and greater flexibility, allowing a wider range of novel weatherization activities, which include the installation of renewable energy technologies, electrification, more expansive health and safety measures, and workforce development. READ MORE

Thursday,
August 31
BOEM Central Atlantic Offshore Wind Energy Lease

The Bureau of Ocean Energy Management seeks public input to inform the preparation of an environmental assessment to examine the potential impacts associated with possible offshore wind energy-related leasing in the U.S. Atlantic Outer Continental Shelf. BOEM has announced three final wind energy areas with a total area of around 356,550 acres, situated offshore Delaware, Maryland, and Virginia. The areas are in relatively shallow waters, and the bureau may explore additional areas in deep water terrain along the U.S. Central Atlantic coast after further study. READ MORE

Friday,
September 1
BLM Sweetwater Carbon Dioxide Sequestration Project

The Bureau of Land Management is due to receive comments on Pond Field LLC’s proposal to construct and operate the Sweetwater Carbon Storage Hub CO2 Sequestration project, a sub-surface pore space in Uinta, Sweetwater, and Lincoln counties in Wyoming. 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 44,570 acres. The project follows a BLM policy update in June 2022 that allows rights-of-way for the geologic sequestration of carbon dioxide on public lands. The company also applied for three Class VI Underground Injection Control permits from the Wyoming Department of Environmental Quality for constructing and operating carbon dioxide injection wells.

Eastern Region

Monday,
August 28
DC PSC Energy Efficiency and Demand Response Programs

The District of Columbia Public Service Commission is due to receive comments on the energy efficiency and demand response potential studies of Washington Gas Light Company and Potomac Electric Power Company. A 2020 working group report recommended the study to guide future program design, implementation, and energy savings goals. Pursuant to commission directive and 2018 legislation, the Energy Efficiency and Demand Response working group is required to continue considering unresolved issues such as the governance structure to coordinate the planning, delivery, reporting, evaluation, and design of energy efficiency and demand response programs administered by utilities, as well as performance incentive measures for the programs. READ MORE

Thursday,
August 31
NYSERDA Commercial & Industrial Accelerated Efficiency

The New York Energy Research and Development Authority is due to receive proposals in response to its $10 million funding opportunity for energy reduction and beneficial electrification projects from existing facilities within the industrial and commercial sectors. Individual awards range from $500,000 to $5 million to large commercial and industrial entities for implementing clean energy actions that improve energy efficiency. The initiative targets projects focused on energy efficiency improvements through thermal load reduction, process enhancements, or controls, or achieve electrification through clean heating and cooling and other technologies. The funding aims to achieve large energy and emissions reductions on an accelerated timeline by providing large customers with flexible funding streams. READ MORE

Western Region

Wednesday,
August 30
WA ECY Third Carbon Auction

The Washington Department of Ecology will hold its third greenhouse gas allowance auction under the state’s cap-and-invest program. This auction will offer 8,585,000 allowances from the current year 2023 at a floor price of $22.20. No future vintage allowances will be offered in the auction. Washington joined the Western Climate Initiative in December 2021, which provides an auction platform for linked programs in California and Québec, and a stand-alone program in Nova Scotia. The second auction, held in May, sold all allowances offered and generated more than $557 million. A summary report will be released on Sept. 6. READ MORE

Thursday,
August 31
CA EC Geothermal Energy Projects

The California Energy Commission will hold a hearing to discuss three geothermal projects proposed by BHE Renewable LLC, located in Imperial County within the Salton Sea Known Geothermal Resource Area. Two of the proposals – Morton Bay and Elmore North – have an expected net output of approximately 140 megawatts each. The third one, Black Rock, is a proposed geothermal power plant with an expected net output of approximately 77 megawatts. 23-AFC-03

Thursday,
August 31
MN PUC Summit Midwest Carbon Express Pipeline

The Minnesota Public Utilities Commission will discuss the proposed scope of the environmental impact statement regarding Summit Carbon Solutions LLC’s application for a routing permit to build a carbon dioxide pipeline. Summit proposes to construct about 28.1 miles of pipeline and associated facilities to capture and transport carbon dioxide from the existing Green Plains Ethanol Plant in Otter Tail County to the North Dakota-Minnesota border in Wilkin County. The project is designed to capture and transport carbon for underground sequestration, which is expected to lower the carbon-intensity score of ethanol produced at the plant by an estimated 40 percent and improve its ability to compete in markets with low-carbon fuel standards. Summit ultimately plans to interconnect the pipeline with a broader proposed network – Midwest Carbon Express Project – spanning about 2,000 miles across Minnesota, Iowa, Nebraska, North Dakota, and South Dakota. PPL-22-422

Thursday,
August 31
MN PUC Minnesota Power Rate Case

The Minnesota Public Utilities Commission will decide whether to approve Minnesota Power’s plan to implement final rates and issue interim rate refunds in its electric rate case proceeding. In December 2021, the commission approved an annual interim rate revenue increase of $87.3 million, or 14.23 percent. The commission’s decisions in this proceeding result in an overall Minnesota jurisdictional revenue requirement deficiency of about $59 million for the 2022 test year. The Department of Commerce recommends that the commission approve an interim rate refund of about $23.5 million for 2022 and a refund of $11.1 million for 2023 non-residential class customers, resulting in nearly $7.4 million higher interim rate refund for non-residential class customers than calculated by the company. The ALLETE Inc. subsidiary initially requested a net increase of $108.3 million, or 17.58 percent, for 2022 with a return on equity of 10.25 percent. GR-21-335