National

The Department of Energy's 2020 budget request reveals new initiatives for advanced energy storage technologies, which are critical to integrating more clean energy into every portion of the power grid.

Why it matters: In the DOE's assessment, deployment of these technologies has been slowed by a "scarcity of technical information on [their] economic performance." The proposed efforts are meant to lower technical barriers to their adoption, helping to meet high electric grid demand by saving energy during off-peak periods from intermittent renewable sources like wind and solar.

Details: According to the budget justification documents provided to Congress by the DOE, this budget would support the following efforts:

Creation of an “Advanced Energy Storage Initiative” that would facilitate collaboration across the DOE’s offices to rapidly increase storage capabilities and integrations

Continued research on new storage devices and materials, including the “development of open source models and software tools for system level energy storage planning and evaluation"

Design and construction of a grid storage “launchpad” at the Pacific Northwest National Lab that would allow teams to test and evaluate new advanced storage technologies

Yes, but: The DOE’s energy storage initiatives do not address other challenges to implementation, including obstructive or unclear state policies.

The outcomes of evolving proceedings in the wake of FERC Order 841 — which requires wholesale power markets to develop rules that allow energy storage resources to participate — could affect the program's success. Some regional transmission organizations are already asking for extensions to FERC compliance deadlines for crafting storage policies.

Watch to watch: The DOE is requesting $5 million to build the launchpad, an expenditure it will partially offset with a $2.5 million reduction in research spending elsewhere.

While these numbers are rounding errors in the context of DOE’s $2.3 billion request for energy innovation and independence programs, the case for this swap will still need to be made to Congress.

Sarah E. Hunt is the co-founder and CEO of Joseph Rainey Center for Public Policy.

Department of Energy seeks to kickstart storage under new budget

Limited research on the benefits of advanced storage systems may be slowing investment.

Secretary of Energy Rick Perry. Photo: Dursun Aydemir/Anadolu Agency/Getty Images

Energy

Department of Energy (DOE)

Expert Voices

Climate change

The Department of Energy&#x27;s <a class="gtmContentClick" data-vars-link-text="2020 budget request" data-vars-click-url="https://www.energy.gov/cfo/downloads/fy-2020-budget-justification" data-vars-content-id="65bf8760-08ac-49b3-b788-b9847ca0ca7d" data-vars-headline="Department of Energy seeks to kickstart storage under new budget" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.energy.gov/cfo/downloads/fy-2020-budget-justification" target="_blank">2020 budget request</a> reveals new initiatives for advanced energy storage technologies, which are critical to integrating more clean energy into <a class="gtmContentClick" data-vars-link-text="every portion of the power grid" data-vars-click-url="https://clearpath.org/energy-101/intro-to-energy-storage/" data-vars-content-id="65bf8760-08ac-49b3-b788-b9847ca0ca7d" data-vars-headline="Department of Energy seeks to kickstart storage under new budget" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://clearpath.org/energy-101/intro-to-energy-storage/" target="_blank">every portion of the power grid</a>.Why it matters: In the DOE&#x27;s assessment, deployment of these technologies has been slowed by a &quot;scarcity of technical information on [their] economic performance.&quot; The proposed efforts are meant to lower technical barriers to their adoption, helping to meet high electric grid demand by saving energy during off-peak periods from intermittent renewable sources like wind and solar.

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

As an alternative approach to securing the border, a group of scientists and engineers have proposed the U.S. and Mexico build a sprawling "energy park" of wind turbines, water desalination plants, solar panels and natural gas pipelines.

The big picture: An energy corridor could offer the benefits of a secured physical barrier, since the infrastructure would be well-protected, while also creating job opportunities for both migrants and U.S. workers. It has some potential for bipartisan appeal, and President Trump even suggested a similar idea in 2017.

Where it stands: The group's plan was delivered to Congress last month, though it remains to be seen whether it will be incorporated into any legislation.

How it works: The proposal — from 29 academics at universities across the U.S. — calls for $1.1 billion in taxpayer funding to start, but total costs have not been defined.

The goal would be to create private-public partnerships to attract private investment from energy companies and manufacturers during the construction phase and later for operation.

Supporters argue that the economic and environmental benefits the project promises could far outweigh the costs, providing stable and well-paying job opportunities for migrants and clean energy for generations to come.

Yes, but: There are still many challenges that would need to be addressed, including the total public cost, security standards and potential risks like bribes offered to employees by drug traffickers.

The bottom line: An energy corridor could simultaneously strengthen U.S.-Latin America ties while improving border and energy security.

Scientists pitch a new border security idea: an energy corridor

They envision economic and environmental benefits — and possible bipartisan support.

Animated illustration of wind turbines and solar panels popping up in a diagonal pattern across the screen. 

low-carbon energy

Latin America and Latinos

As an alternative approach to securing the border, a group of scientists and engineers have <a class="gtmContentClick" data-vars-link-text="proposed" data-vars-click-url="https://blogs.scientificamerican.com/observations/bold-plan-replace-the-border-wall-with-an-energy-water-corridor/?utm_medium=social&amp;utm_content=organic&amp;utm_source=facebook&amp;utm_campaign=SciAm_&amp;sf209218747=1&amp;fbclid=IwAR2K4jgsFcpqxyZOeWMgNPBiCqwtrQi9uxNZuzLd8CGWO4pEx8-jmCnKfnI" data-vars-content-id="7bedf5a1-ee57-4bf6-adf2-de55450348b0" data-vars-headline="Scientists pitch a new border security idea: an energy corridor" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://blogs.scientificamerican.com/observations/bold-plan-replace-the-border-wall-with-an-energy-water-corridor/?utm_medium=social&amp;utm_content=organic&amp;utm_source=facebook&amp;utm_campaign=SciAm_&amp;sf209218747=1&amp;fbclid=IwAR2K4jgsFcpqxyZOeWMgNPBiCqwtrQi9uxNZuzLd8CGWO4pEx8-jmCnKfnI" target="_blank">proposed</a> the U.S. and Mexico build a sprawling &quot;energy park&quot; of wind turbines, water desalination plants, solar panels and natural gas pipelines.The big picture: An energy corridor could offer the benefits of a secured physical barrier, since the infrastructure would be well-protected, while also creating job opportunities for both migrants and U.S. workers. It has some potential for bipartisan appeal, and President Trump even suggested a <a class="gtmContentClick" data-vars-link-text="similar idea in 2017" data-vars-click-url="https://www.axios.com/trump-pitched-republican-leaders-on-a-solar-paneled-border-wall-1513302804-07c642d7-5a34-4eda-8ef6-5ce53df17e4d.html" data-vars-content-id="7bedf5a1-ee57-4bf6-adf2-de55450348b0" data-vars-headline="Scientists pitch a new border security idea: an energy corridor" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/trump-pitched-republican-leaders-on-a-solar-paneled-border-wall-1513302804-07c642d7-5a34-4eda-8ef6-5ce53df17e4d.html" target="_self">similar idea in 2017</a>.

The Department of Justice recently indicted Chinese engineer and battery storage expert Hongjin Tan — a Chinese citizen and U.S. legal permanent resident — for stealing over $1 billion worth of trade secrets from his employer, the U.S. petroleum company Phillips 66.

The big picture: The U.S. energy industry is the latest victim of corporate espionage and intellectual property (IP) theft by China — a growing threat to American energy innovation. Then-President Obama signed a deal with President Xi Jinping in 2015 to combat IP theft, but Chinese cyber espionage picked back up because of trade tensions after President Trump took office.

Details: Tan allegedly downloaded hundreds of confidential files, including information related to manufacturing a downstream energy market product, and planned to provide the information to his new Chinese employer.

Why it matters: Corporate espionage and IP theft is an expensive problem, costing the U.S. up to $600 billion annually. If the Chinese government succeeds in stealing energy manufacturing and research secrets from the U.S., American energy companies may end up competing against their own technological innovations and ideas. This would severely stunt U.S. innovation and global energy leadership. 

Yes, but: The burden of current U.S. regulatory structures also encourages American energy companies to take advanced energy research to China, further putting them at risk for stolen IP. 

In response, the Department of Energy recently implemented a policy restricting the ability of U.S. companies to develop new nuclear energy technology in China — a move that may protect national security and intellectual property, but at the expense of energy innovation.

The bottom line: Tan’s case is a fresh reminder of China's willingness to engage in corporate espionage in the fight for global energy dominance — and the country shows no signs of slowing down. While the Department of Energy has taken reasonable steps to prevent IP theft, including banning recruitment programs suspected of foreign spying, a more effective response would also require Congress and the energy industry to join forces and explore regulatory reforms.

DOJ indictment reveals threat of Chinese IP theft to U.S. energy innovation

U.S. companies could end up competing against their own technology.

The Phillips 66 Company logo seen displayed on smart phone.

The Phillips 66 Company logo on a smart phone. Photo: Igor Golovniov/SOPA Images/LightRocket via Getty Images

World

Intellectual property

Business

The <a class="gtmContentClick" data-vars-link-text="Department of Justice recently indicted" data-vars-click-url="https://www.reuters.com/article/us-usa-china-theft/china-national-charged-with-stealing-trade-secrets-u-s-justice-department-idUSKCN1OK2DO" data-vars-content-id="b2ca3e28-bf2f-484e-b3e7-a874b1652f33" data-vars-headline="DOJ indictment reveals threat of Chinese IP theft to U.S. energy innovation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.reuters.com/article/us-usa-china-theft/china-national-charged-with-stealing-trade-secrets-u-s-justice-department-idUSKCN1OK2DO" target="_blank">Department of Justice recently indicted</a> Chinese engineer and battery storage expert Hongjin Tan — a Chinese citizen and U.S. legal permanent resident — for stealing over <a class="gtmContentClick" data-vars-link-text="$1 billion" data-vars-click-url="https://news.clearancejobs.com/2019/02/06/insider-walks-trade-secrets-worth-1-billion-out-the-door-on-his-way-to-china/?fbclid=IwAR0Rj-9pdFzsq_kl5gr9qmUUYssdg5oRNOJqfldqvOdY009vKTWVSuxosds" data-vars-content-id="b2ca3e28-bf2f-484e-b3e7-a874b1652f33" data-vars-headline="DOJ indictment reveals threat of Chinese IP theft to U.S. energy innovation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://news.clearancejobs.com/2019/02/06/insider-walks-trade-secrets-worth-1-billion-out-the-door-on-his-way-to-china/?fbclid=IwAR0Rj-9pdFzsq_kl5gr9qmUUYssdg5oRNOJqfldqvOdY009vKTWVSuxosds" target="_blank">$1 billion</a> worth of trade secrets from his employer, the U.S. petroleum company Phillips 66.The big picture: The U.S. energy industry is the latest victim of corporate espionage and intellectual property (IP) theft by China — a growing threat to American energy innovation. Then-President Obama signed a deal with President Xi Jinping in 2015 to combat IP theft, but Chinese cyber espionage picked back up because of trade tensions <a class="gtmContentClick" data-vars-link-text="after President Trump took office" data-vars-click-url="https://www.nytimes.com/2018/11/29/us/politics/china-trump-cyberespionage.html" data-vars-content-id="b2ca3e28-bf2f-484e-b3e7-a874b1652f33" data-vars-headline="DOJ indictment reveals threat of Chinese IP theft to U.S. energy innovation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nytimes.com/2018/11/29/us/politics/china-trump-cyberespionage.html" target="_blank">after President Trump took office</a>.

Top stories & latest news on the Federal Reserve, real-time data, plus the biggest shifts happening in the U.S. and global economy.

Economy

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

California Assemblyman Chad Mayes (R-Yucca Valley) is proposing a new Enhanced Clean Energy Standard (CES) as the next step in curbing carbon emissions in California. 

The big picture: Mayes' bill would create an enforceable 80% CES that's "technology neutral," meaning that utility companies would be required to limit greenhouse gas emissions, but would be free to choose the technology with which to do so. This approach has been popular among conservatives recently, and may please progressive climate activists, too.

How it works: The legislation sets a zero-emissions standard, but doesn't specify any preferred energy technology. This tech-neutral approach would help control costs of de-carbonization by allowing businesses to choose any qualifying zero-emissions energy source based on affordability and business needs. That leaves the door open for non-renewable, zero-emissions sources to qualify for compliance plans, including nuclear, hydro, carbon capture and market entry for yet-to-be-discovered energy technology.

Conservatives have been advocating for this tech-neutral concept in a number of ways: 

Sen. John Barrasso (R-Wyo.) proposed legislation to support “carbon utilization and direct air-capture research.”

Rep. Tom Reed (R-N.Y.) proposed a tech-neutral tax credit that would strengthen “market-driven innovation across electricity-generating technologies.”

The staunchly conservative American Legislative Exchange Council passed two clean coal carbon-capture resolutions in December.

Even President Trump signed legislation that incentivizes clean coal and could advance carbon capture use and storage technologies.

Between the lines: Republicans are generally more comfortable with climate action when policies go beyond wind and solar solutions to include all energy and technology options for minimizing greenhouse gas emissions. Tech-neutral advocates hope that preserving as much freedom of choice as possible will make climate change legislation both economically practical and environmentally effective.

This approach can also accelerate affordable decarbonization because it allows all existing zero-emissions energy technology to compete.

The bottom line: Mayes’ bill may be the best chance for electric utility companies and climate change advocates to cooperate on meeting California’s climate goals: Currently, there is a binding requirement for 60% of electricity to come from renewable sources by 2030 and a non-enforceable goal of 100% of electricity from zero-emissions sources by 2045. Mayes' bill would increase the enforceable zero-emissions target to 80% by 2038.

Tech-neutral energy standards emerge as bipartisan climate policy

Companies would need to limit emissions, but would be free to choose how.

Sen. John Barrasso, R-Wyo., arrives in the Capitol for the Senate policy luncheons on Tuesday, Feb. 26, 2019.

Sen. John Barrasso. Photo: Bill Clark/CQ Roll Call

Climate change policy

Politics

California Assemblyman Chad Mayes (R-Yucca Valley) is proposing a new Enhanced Clean Energy Standard (CES) as the next step in curbing carbon emissions in California. The big picture: <a class="gtmContentClick" data-vars-link-text="Mayes&#x27; bill" data-vars-click-url="https://legiscan.com/CA/text/AB915/2019" data-vars-content-id="dd0db157-8465-4e26-9858-a3621dcdb874" data-vars-headline="Tech-neutral energy standards emerge as bipartisan climate policy" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://legiscan.com/CA/text/AB915/2019" target="_blank">Mayes&#x27; bill</a> would create an enforceable 80% CES that&#x27;s &quot;<a class="gtmContentClick" data-vars-link-text="technology neutral" data-vars-click-url="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2529680" data-vars-content-id="dd0db157-8465-4e26-9858-a3621dcdb874" data-vars-headline="Tech-neutral energy standards emerge as bipartisan climate policy" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2529680" target="_blank">technology neutral</a>,&quot; meaning that utility companies would be required to limit greenhouse gas emissions, but would be free to choose the technology with which to do so. This approach has been popular among conservatives recently, and may please progressive climate activists, too.

The FCC recently proposed a new rule that will allow unlicensed users to access the 6 GHz band — a frequency on the radio spectrum — for Wi-Fi connectivity, causing a disagreement between broadband companies that would benefit from the rule and utility companies that currently rely on the frequency to communicate.

The big picture: The FCC and utility companies are on two different pages. Utility leaders say the FCC focuses more on the needs of the telecommunications sector and does not understand the negative effects their decisions might have on critical infrastructure operations. Since the FCC controls the radio frequency that grid operators rely on to communicate, utilities are frustrated their needs are being overlooked.

Background: The FCC reserves portions of the 6 GHz band for communications between licensed electric, water and natural gas utilities companies. The FCC says the proposed change to open the band to unlicensed users will solve the country's airwave shortage problem and improve Wi-Fi capabilities for mobile devices and wireless routers.

Tech companies — including Apple, Google, Cisco, Facebook and HP — support the FCC plan, arguing that wireless broadband services will need it to meet growing demand. 

Groups representing utility companies warn against the rule, saying that an influx of users might clog mobile communications for licensed energy companies, potentially compromising safety during electric grid blackouts or natural disasters.

 FCC Chairman Ajit Pai claims the proposed rule will not interfere with those who already rely on it, promising to open up 1,200 MHz of spectrum in the 6 GHz band for different types of unlicensed uses in a way that will protect incumbent licensed ones.

The bottom line: Though the FCC's intention is to improve Wi-Fi connectivity for everyone, the rule highlights an important clash within FCC's jurisdiction that needs to be resolved. The debate presents an opportunity for the FCC to come together with the tech industry, utility companies and Congress to discuss solutions that will protect grid safety and reliability for all Americans.

Tech and utilities clash over proposed FCC broadband rule

Ajit Pai claims opening the 6 GHz band won't disrupt utilities relying on it.

FCC Chairman Ajit Pai testifies before the Senate Appropriations Committee on May 17, 2018. 

FCC Chairman Ajit Pai testifies before the Senate Appropriations Committee on May 17, 2018. Photo: Win McNamee via Getty Images

Federal Communications Commission (FCC)

The FCC recently<a class="gtmContentClick" data-vars-link-text=" proposed a new rule" data-vars-click-url="https://www.federalregister.gov/documents/2018/12/17/2018-26013/unlicensed-use-of-the-6-ghz-band" data-vars-content-id="ee084a82-ae12-4a7b-bf66-ce7277863873" data-vars-headline="Tech and utilities clash over proposed FCC broadband rule" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.federalregister.gov/documents/2018/12/17/2018-26013/unlicensed-use-of-the-6-ghz-band" target="_blank"> proposed a new rule</a> that will allow unlicensed users to access the 6 GHz band — a frequency on the radio spectrum — for Wi-Fi connectivity, causing a disagreement between broadband companies that would benefit from the rule and utility companies that currently rely on the frequency to communicate.The big picture: The FCC and utility companies are on two different pages. Utility leaders say the FCC focuses more on the needs of the telecommunications sector and does not understand the negative effects their decisions might have on critical infrastructure operations. Since the FCC controls the radio frequency that grid operators rely on to communicate, utilities are frustrated their needs are being overlooked.

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Sarah E. Hunt

Stories

Department of Energy seeks to kickstart storage under new budget

Scientists pitch a new border security idea: an energy corridor

Tech-neutral energy standards emerge as bipartisan climate policy

DOJ indictment reveals threat of Chinese IP theft to U.S. energy innovation

Tech and utilities clash over proposed FCC broadband rule