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Energy Update: March 11, 2022

In the States
 

NJ: Governor Phil Murphy said that he was considering state action against Lukoil, an oil company with close ties to Russian President Vladimir Putin. Speaking on CNBC’s Squawk Box program, the Governor said that he was “trying to figure out what to do with [Lukoil],” which has 33 gas stations in New Jersey. Lukoil is one of Russia’s largest energy producers and operates over 200 gas stations in the United States. Following Russia’s invasion of Ukraine, Governor Murphy directed state agencies to take steps to review and potentially suspend the licenses of Russian businesses operating in the state. Newark’s city council already voted to suspend the licenses of the two Lukoil stations within city limits. “We have one of the largest Ukrainian populations of any state, and we wear that as a badge of honor,” Governor Murphy said. New Jersey Governor Phil Murphy considers state action against Russia-linked Lukoil gas stations – CNBC

OK: Governor Kevin Stitt is planning to award a state-record $15 million to electric vehicle manufacturer Canoo, as part of the company’s planned investment of more than $560 million in Oklahoma. According to the Tulsa World newspaper, state money from the Governor’s Quick Action Closing Fund will back Canoo’s commitment to 1,500 jobs at a factory in the city of Pryor, coupled with another 700 jobs at two facilities in Oklahoma City and Tulsa. Oklahoma has also finalized an agreement to purchase 1,000 vehicles from the company for state use. The commitment is over five times the previous record for state investment, a $3 million grant in 2013. Oklahoma Governor offers record $15 million to electric car maker– AP

PR: Puerto Rico Governor Pedro Pierluisi announced he was canceling a debt restructuring deal for the island’s troubled electric utility. The publicly owned Puerto Rico Electric Power Authority (PREPA) holds $9 billion in debt, more than any other part of the island’s government. The restructuring plan would have cut the company’s debt by 32%, but likely raised electricity rates dramatically on the commonwealth’s population. PREPA is currently in bankruptcy, and the Governor reiterated his commitment to helping the company emerge from bankruptcy along more “feasible” terms. Energy in Puerto Rico is more costly than almost all U.S. jurisdiction, and

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the island suffers from roving blackouts. The Governor and Puerto Rico’s federally appointed fiscal oversight board will oversee the negotiation of a new debt agreement with PREPA’s creditors. Puerto Rico governor cancels utility’s restructuring deal – NBC

WY: Governor Mark Gordon announced that his office and the Wyoming Legislature would fund a new position in state government focused on working collaboratively with companies to harness the state’s energy resources. “These are multi-billion-dollar investments, and our goal is to leverage those so we can create the most Wyoming jobs and expand sectors of the economy through better coordination,” Gordon said in a news release. The position, known as the “Energy Development Manager,” will seek to work with companies in both the fossil fuel and renewable industries to eliminate red tape and attract investment. Funding for the role will come from one-time federal dollars. Governor, legislators support energy development manager position – Wyoming Tribune Eagle

National

In a letter, 25 of the nation’s 28 Republican Governors called on President Biden to boost domestic energy production and remove restrictions on drilling and pipelines. The list of Governors, which included every Republican except Governors Mike DeWine of Ohio, Phil Scott of Vermont, and Charlie Baker of Massachusetts, asked the President to allow construction of the Keystone XL pipeline and permit drilling on federal lands. The administration had previouslyblocked drilling on federal lands and revoked the Keystone pipeline’s permit. The move comes in response to soaring gas prices, largely driven by Russia’s invasion of Ukraine. "As governors, we call on President Biden to reverse his policies and restore America's energy independence for our citizens as well as our allies abroad," the governors said. 25 GOP Governors call on President Biden to boost domestic energy production– CBS News

President Biden announced a ban on imports of Russian energy products, calling it a “blow to Putin’s war machine.” The President, who later issued an executive order enforcing the ban, warned this action is likely to increase domestic gas prices but is a necessary respond to Russia’s invasion of Ukraine. The executive order also bans Americans from participating in foreign investments that flow into Russia’s energy sector and gives energy companies 45 days to wind down existing operations in Russia. Biden announces a ban on Russian oil imports, calling it “Putin’s price hike”— NBC News

 

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