ENERGY

CONSTRUCTION Soaring Prices And Delivery Delays

For Lumber, Steel And Other Inputs Squeeze Finances For Construction Firms Already Burdened By Pandemic

By Subcontractors USA News Provider

Price increases—some to record-setting levels— and long delivery delays are causing hardships for construction firms that are also experiencing challenges in completing projects with crews limited by illness or new work site procedures resulting from the pandemic, according to an analysis by the Associated General Contractors of America of government data released today. Association officials urged the Biden administration to review and rescind a range of trade tariffs in place, including for Canadian lumber, that are contributing to the price increases.

“The extreme price increases, as reflected in today’s producer price index report and other sources, are harming contractors on existing projects and making it difficult to bid new work at a profitable level,” said Ken Simonson, the association’s chief economist. “While contractors have kept bids nearly flat until now, project owners and budget officials should anticipate the prospect that contractors will have to pass along their higher costs in upcoming bids.”

Prices for materials and services used in construction and contractors’ bid prices both declined at the beginning of the pandemic but have diverged sharply since last April, Simonson said. A government index that measures the selling price for materials and services used in new nonresidential construction increased 2.5 percent from December to January and 10.7 percent since April. Meanwhile, the producer price index for new nonresidential construction—a measure of what contractors say they would charge to erect five types of nonresidential buildings—increased only 0.2 percent over both the latest month and the nine months since April.

“The government data was collected more than a month ago, and numerous sources indicate price increases have continued or even accelerated since then,” Simonson added. “For instance, the Framing Lumber Composite Price compiled by the publication Random Lengths hit an all-time high last week. Several steel product prices are also reported at record levels, and copper futures are at an eight-year peak. Meanwhile, delivery delays are affecting both imports and domestically sourced construction inputs.”

Association officials said that while there are a range of reasons driving price spikes for key building materials, tariffs on numerous materials, including lumber and steel, are contributing to those cost increases. They urged the Biden administration to rescind these tariffs to provide immediate relief to construction employers caught between stagnant bid prices and rising materials costs. They also urged the administration and Congress to explore new ways to expand capacity for a host of key construction materials by reviewing regulatory impediments to expanding logging and steel production, for example. “Left unchecked, these rising materials prices threaten to undermine the economic recovery by inflating the cost of infrastructure and economic development projects,” said Stephen E. Sandherr, the association’s chief executive officer. “Widespread harm is caused by maintaining tariffs on products that so many Americans need to improve their houses, modernize their infrastructure and revitalize their economy.”

Source: The Associated General Contractors of America

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ENERGY ExxonMobil CPS Energy

Takes Further Steps To Protect Customers From Excessive, Illegitimate and Illegal Prices

Tests Advanced

RECYCLING OF PLASTIC

Waste at Baytown

Facilities ExxonMobil has already obtained certifications through the International Sustainability and Carbon Certification Plus (ISCC+) process. ISCC+ is widely recognized by industry as an effective system to certify ExxonMobil has completed the initial phase of products that result from advanced recycling of plastic a plant trial of a proprietary advanced recycling waste. Pending a successful completion of the next process for converting plastic waste into raw phase of the Baytown plant trial, the company plans materials for production of high-value polymers. to market commercial volumes of certified circular The trial, at the company’s existing facilities in plastics later this year. Baytown, Texas, marks another step in ExxonMo- ExxonMobil has also formed a joint venture with bil’s efforts to help reduce plastic waste in the environment and maximize resource recovery. Agilyx Corporation, Cyclyx International LLC, focused on developing innovative solutions for aggregating and pre-processing large volumes of plastic • Developing capability to convert plastic waste into valuable products at scale • Proprietary process leverages existing integrated facilities • Plans to market ISCC+ certified circular polymers later this year waste that can be converted into feedstocks for valuable products. Cyclyx will help supply ExxonMobil’s advanced recycling projects, and will aim to do the same for other customers. The company supports making the most of resources and minimizing waste, which are the underlying principles of the circular economy concept. Advanced recycling, along with innovation and new processes, By Subcontractors USA will play an important role in reducing plastic waste. News Provider ExxonMobil is founding member of the Alliance to End Plastic Waste, which is focused on accelerating

ExxonMobil intends to use results from the investment in safe, scalable and economically viable Baytown trial to scale-up advanced recycling solutions to help address the challenge of plastic waste capabilities at other global facilities, targeting in the environment. a circular solution for converting difficult-to-recycle plastic waste into feedstock for virgin-quality plastic. Source: ExxonMobil

“ExxonMobil is taking action to help address the issue of plastic waste,” said Karen McKee, president

of ExxonMobil Chemical Company. “This advanced recycling initiative brings together the strength of ExxonMobil’s integrated petrochemical facilities and our deep technology expertise in chemical processing to capture value from plastic waste and meet our customers’ growing demand for high-performance, certified circular polymers.”

By Subcontractors USA News Provider

Eecently, CPS Energy filed suit against the Electric Reliability Council of Texas (ERCOT) in Bexar County District Court to protect its customers from excessive, illegitimate and illegal prices. "CPS Energy is taking this action to defend its customers. Those who suffered the consequences of ERCOT's failure must not be victimized by one of the largest illegal transfers of wealth in the history of Texas, too," said San Antonio Mayor Ron Nirenberg. "Ensuring the fair treatment of customers and preventing them from additional harm by outrageous, excessive charges is essential, and we are fighting to achieve that goal." "We are fighting to protect our customers from the financial impacts of the systemic failure of the ERCOT market and the outrageous and unlawful costs associated with that failure," said Paula Gold-Williams, President & CEO of CPS Energy. "During a state declared disaster, ERCOT ran up $20 billion in charges for 5 days of energy supply due to its lack of oversight, preparedness, and failure to follow its own protocols. That is a huge amount of money and it's incredibly important we continue to fight for our customers to bring those bills down."

As part of its investigation into the February Storm, the Public Utility Commission (PUC) of Texas' Independent Market Monitor concluded that ERCOT made critical mistakes that resulted in erroneous electricity overcharges, and recommended the charges be reversed. The Independent Market Monitor also said ERCOT exceeded the mandate of the PUC by continuing to set high prices long after the load shed.

As always, CPS Energy has and will continue to pay all lawful, legitimate charges for electricity. However, CPS Energy is also an energy supplier to ERCOT, which has failed to pay the community utility what it is owed under its market agreement. In today's petition, the utility is asking the Court to take action to prevent harm to CPS Energy and its customers. CPS Energy has brought action against ERCOT, for among other things, breach of contract, negligence, and violation of the Texas Constitution, and has petitioned the Court to prevent ERCOT from:

1. Charging excessive prices to CPS Energy and its customers in violation of the Texas Constitution; 2. Overcharging market participants like CPS Energy and its customers for the failures of others; and 3. Any effort to wrongfully declare CPS Energy in default.

When available, a copy of the filing can be found on the company's website at www.cpsenergy.com. CPS Energy will also provide relevant updates, as major developments occur.

ENERGY ExxonMobil Outlines Plans

To Grow Long-Term Shareholder Value in Lower Carbon Future

ExxonMobil recently outlined its plans through 2025 to increase earnings and cash flow to sustain and grow its dividend, reduce debt and fund advantaged projects, while working to commercialize lower emission technologies in support of the goals of the Paris Agreement.

• Industry-leading investment portfolio profitable at low prices and flexible to market conditions • Plans through 2025 increase earnings, cash flow to sustain and grow dividend, reduce debt and advance advantaged projects • Technology leadership to develop lower carbon solutions and create future value “We are fully committed to growing shareholder value by meeting the world’s energy demands today and pursuing a technology-driven strategy to succeed through the energy transition,” Darren Woods, chairman and chief executive officer, said at the company’s annual investor day.

By Subcontractors USA News Provider

bon. The company has an equity share in about one-fifth of global CO2 capture capacity and has captured approximately 40 percent of all the captured anthropogenic CO2 in the world. ExxonMobil also produces about 1.3 million tonnes of hydrogen per year and is developing technology that could significantly lower the cost of both CCS and low-carbon hydrogen. The International Energy Agency projects that CCS could mitigate up to 15 percent of global emissions by 2040 and the authoritative U.N. Intergovernmental Panel on Climate Change (IPCC) estimates that global de-carbonization efforts could be twice as costly without CCS. Using estimates and demand projections, includemissions -- commercial transportation, power genera- ing from IPCC Lower 2 degree Celsius scenarios, the tion and heavy industry. market for CCS and other low-emission technologies The company’s newly created business, ExxonMobil and products is expected to grow significantly by 2040.Low Carbon Solutions, was established to commercial- “Our development of next-generation technologies

ExxonMobil plans capital spending of $16-$19 ize low-emission technologies, and will initially focus and existing businesses positions us well to capitalize on billion in 2021 and $20-$25 billion per year on carbon capture and storage (CCS), the process of the growing demand for de-carbonization and market through 2025 on high-return, cash-accretive capturing CO2 that would otherwise be released into opportunities that are increasingly coming together to projects. Spending plans can be modified to reflect the atmosphere from industrial activity, and injecting support lower-carbon energy solutions,” said Woods. market conditions, as illustrated by successful efforts it into deep geologic formations for safe, secure and ExxonMobil met its 2020 emission reduction goals to preserve the value of investment opportunities while permanent storage. that included 15 percent reduction in methane emissions reducing capital spending by more than 30 percent in ExxonMobil is the industry leader in CCS technology versus 2016 levels, and a 25 percent reduction in flaring 2020 as a result of the pandemic. The company and has more than 30 years of experience capturing car- versus 2016 levels. also reduced cash operating expenses by 15 per- The company’s 2025 emission reduction plans cent in 2020 and expects permanent structural include a 15 to 20 percent reduction in upstream savings of $6 billion a year by the end of 2023 versus 2019. “Our investment portfolio is the best greenhouse gas intensity versus 2016 levels, supported by a 40 to 50 percent reduction in methFuture spending plans take into account potential market volatility as the economy recovers we’ve had in over 20 years, and will ane intensity and 35 to 45 percent reduction in flaring intensity. from the pandemic. grow earnings and cash flow in the near The plans are expected to reduce absolute “Our investments are expected to generate returns of greater than 30 percent,” said Woods. term while remaining flexible to market greenhouse gas emissions by an estimated 30 percent for the Upstream business. Absolute “And 90 percent of our upstream investments in resource additions, including in Guyana, conditions and benefiting from ongoing flaring and methane emissions are expected to decrease by 40 to 50 percent under the plans. Brazil and the U.S. Permian Basin, generate a 10 percent return at $35 per barrel or less. Down- cost-reduction efforts. Looking ahead, The company also aims for industry-leading greenhouse gas performance and to eliminate stream investments improve net cash margin by 30 percent and our Chemical investments grow we’re working to reduce our emissions and routine flaring in line with the World Bank initiative by 2030. high-value performance products by 60 percent.” To grow shareholder value through the transidevelop solutions, such as carbon capture The company’s investor day presentations tion to a lower carbon economy, ExxonMobil has and low-carbon hydrogen, needed to de- are available on its Investor Relations site at focused its extensive research and development portfolio on technologies to address hard to carbonize the highest emitting sectors of exxonmobil.com. de-carbonize sectors of the economy responsible for approximately 80 percent of energy-related the economy – a critical requirement for Source: ExxonMobil society to achieve its net zero ambition.”

IT & TECHNOLOGY 5 Surprising Ways Clean Technology is Improving Daily Life

By Subcontractors USA News Provider

Climate-related crises like rising sea levels, severe weather events and longer drought seasons are challenging the global economy. They’re also driving the launch of new clean technologies.

Here are five examples of how Here are five examples of these new technologies are how these new technologies changing and improving daily are changing and improving life:daily life:

1. Making clean energy easier to

access. With the renewable energy sector experiencing tremendous growth, solar energy is becoming a more affordable solution for Americans who were previously left out of the solar revolution. Projects like the Tribal Solar Accelerator Fund are putting solar on homes and tribal buildings in rural parts of Indian Country to reduce energy costs and advance Energy Sovereignty.

2. Creating new jobs when they’re

needed most. In addition to cleaner air and reducing carbon, the renewable energy sector is creating thousands of clean energy jobs in communities across the U.S.

3. Improving buildings like

hospitals, schools and offices. With commercial buildings accounting for about 40% of all electricity use in the U.S., and heightened concern around safety and indoor air quality, the founders of startup 75F are using internet-of-things-powered building management systems and cloud-based software to improve heating and cooling efficiencies, maintain occupant comfort and improve air quality in commercial buildings.

4. Helping farmers become more

productive and resilient. Agriculture currently accounts for 70% of the world’s water usage and 14% of its energy usage. Startup Pluton Biosciences is using microbes to help identify and address soil imbalances and diseases before they become a larger problem on particular parcels of land. This is helping farmers remain productive and efficient in the face of unpredictable weather patterns, pollution and crop infestations. The company CoverCress is working on a new cash crop for the Midwest that farmers can plant during winter months in between corn and soybean seasons. The crop sequesters carbon and can be harvested as a low-carbon feed for livestock.

5. Boosting affordable housing inventory so more people can find

homes. Construction technologies like Blokable’s prefabricated building system are addressing the housing affordability crisis by creating multi-family housing units that are highly efficient, drastically reducing the volume of construction waste.

Programs like the Wells Fargo Innovation Incubator, which works with the U.S. Department of Energy’s National Renewable Energy Laboratory, are investing in new clean energy startups, helping them bring game-changing climate solutions to market. Experts say that such investments will be critical in the years to come.

“Continued investment in startups and entrepreneurs focused on low-carbon solutions will help build a stronger global economy and more resilient communities, and help avoid the worst impacts of climate change,” says Ramsay Huntley, sustainable finance strategist at Wells Fargo.

Source: StatePoint