WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, Daily on Energy readers!
We hope you all had a restful weekend. We are kicking the newsletter off with a series of actions by the Trump administration to boost the domestic production of coal. The Department of the Interior, Department of Energy, and the Environmental Protection Agency released initiatives related to coal production. Specifically, the DOI greenlighted the opening of 13.1 million acres of federal land for coal leasing.
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With the help of our editor, Joe Lawler, we also take a look at where oil prices are standing now, ahead of the OPEC+ meeting on Oct. 5. Also, we are watching to see whether lawmakers can avert a government shutdown by tomorrow at midnight.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
TRUMP ADMINISTRATION TAKES A SERIES OF ACTIONS TO BOOST COAL: The Trump administration today announced a series of actions across federal agencies to boost the production of coal as part of an effort to address the rise in energy demand.
Secretary of the Interior Doug Burgum held an event this morning to announce several actions to increase domestic production of coal, including opening 13.1 million acres of federal land for coal leasing. The leases were initiated as part of President Donald Trump’s One Big Beautiful Bill Act, which required the DOI to open at least 4 million acres of public land for coal leasing.
As part of the announcement, the Interior Department will also reduce the royalty rates for coal production from 12.5% to 7%, lowering the per-ton cost of mining coal. It is also working to streamline coal lease approvals.
Environmental Protection Agency Administrator Lee Zeldin was in attendance at the DOI’s event, where he announced the agency would provide additional compliance time for steam electric power generation to meet the 2024 Effluent Limitations Guidelines, which are meant to reduce pollution. The EPA also imposed advance notice of proposed rulemaking to gather public input on possible changes to how the Clean Air Act’s Regional Haze Rule is implemented.
Other coal action: The Energy Department said today it would invest $625 million into coal power plants.
The investment will specifically go towards recommissioning or modernizing coal power units. It will also fund coal projects in rural areas, wastewater management, engineering of power plants, and maintenance of boiler efficiency.
Energy Secretary Chris Wright said in a press release, “Beautiful, clean coal will be essential to powering America’s reindustrialization and winning the AI race.”
He added, “These funds will help keep our nation’s coal plants operating and will be vital to keeping electricity prices low and the lights on without interruption. Coal built the greatest industrial engine the world has ever known, and with President Trump’s leadership, it will help do so again.”
Read more by Maydeen here.
THE PROBLEM LOOMING OVER THE TRUMP ADMINISTRATION: Energy costs are rising fast, posing a major threat to the political fortunes of Trump and the GOP, as Callie and Maydeen explored in an article published over the weekend.
Remember: Trump campaigned against the Biden administration’s energy policies, blaming them for pushing up prices. He also promised to cut electricity prices in half in the first year.
That goal, which of course was always extremely ambitious, has slipped out of reach. Electricity prices were up more than 6% for the year ending in August.
Key quote: “I don’t see prices going down, hopefully, the increases can be slowed,” said Steve Milloy, a senior legal fellow with the Energy and Environment Legal Institute and former Trump Environmental Protection Agency transition team member.
This is one of the major political stories of the year. Read the whole article for much more on this important topic.
BRENT UNDER $70 ON OPEC+ NEWS: Oil prices are down significantly today on the prospect of a further production increase from OPEC+.
Members of the cartel are weighing adding at least the 137,000 barrels per day scheduled for October when they meet Oct. 5, Bloomberg reported.
The price of Brent crude fell 3% today, crossing the $70 line and hovering under $68 as of this early afternoon. WTI fell 3.5% to under $64.
Another factor in Monday’s movement was that Iraq resumed crude oil exports from Kurdistan to Turkey after two-plus years of disruptions.
SHUTDOWN WATCH: Lawmakers have until Tuesday at midnight to avert a government shutdown. But, if unsuccessful, hundreds of thousands of federal employees will be placed on temporary unpaid leave.
Trump is expected to meet with four congressional leaders today: Republican House Speaker Mike Johnson of Louisiana, Democratic House Minority Leader Hakeem Jeffries of New York, Republican Senate Majority Leader John Thune of South Dakota, and Democratic Senate Minority Leader Chuck Schumer of New York.
A government funding bill requires 60 votes to be adopted in the Senate. Senate Republicans have a three-seat majority, meaning they will need the votes of at least seven Senate Democrats.
Democrats want extensions of additional Obamacare subsidies, which expire at the end of the year. But Republicans have so far rejected that request.
Impact on environmental agencies: Typically, agencies release contingency plans for who would be furloughed during a government shutdown. The EPA released a contingency plan in March, but an updated plan could be released soon.
As of March, the total number of agency employees expected to be on board before implementation of the plan included 16,737, with only 1,260 workers continuing to work because they are considered “essential workers.”
The Department of Homeland Security said in its plan that out of 24,925 employees, about 20,975 workers from the Federal Emergency Management Agency will be exempted from furloughs.
However, the White House last week called on agencies to consider layoffs if a shutdown occurs. Politico reported that the Office of Management and Budget sent a memo directing agencies to consider staff reductions in programs, projects, or activities where discretionary funding will lapse on Oct. 1, no alternative funds are available, and the program doesn’t align with the administration’s priorities.
The Department of the Interior and Energy have yet to provide updated contingency plans.
DOE ADDS ‘CLIMATE CHANGE’ AND ‘EMISSIONS’ TO BANNED WORDS: The Department of Energy over the weekend added to a list of words to avoid at its Office of Energy Efficiency and Renewable Energy, including “climate change,” “green,” and “emissions.”
Politico reported that, in an email sent Friday acting director of external affairs Rachel Overbey told the office to “Please ensure that every member of your team is aware that this is the latest list of words to avoid — and continue to be conscientious about avoiding any terminology that you know to be misaligned with the Administration’s perspectives and priorities.”
The EERE prohibited officials from using the word “emissions,” as it is linked to negative connotations, Politico said.
The ban applies to public and internal communications, as well as cover documents. Other words the agency has placed on its list include: “energy transition,” “sustainability/sustainable,” “‘clean’ or ‘dirty’ energy,” “Carbon/CO2 ‘Footprint’” and “Tax breaks/tax credits/subsidies.”
A spokesman, though, said the words were not banned.
AN UPDATE ON THE ‘OIL CAPITAL’ OF EUROPE: Oil and gas figures in Aberdeen, Scotland, are not aligned with Trump in their skepticism of offshore wind, the Financial Times reports, as they look for ways to reverse the declining fortunes of the industry and city.
Reminder: Trump touted Aberdeen’s status as the “oil capital of Europe” – thanks to the North Sea drilling it has long supported – when he visited Scotland over the summer.
Trump also called on Scotland to stop building wind turbines. In the past, he fought and lost a lengthy legal battle to stop the construction of a wind farm visible off the coast from his golf course in the area.
But: A recent report from a local university found that Scotland needs to benefit from building renewables, as the offshore workforce is set to decline from 75,000 last year to 45,000-63,000 in the early 2030s.
A LOOK AHEAD:
Sept. 29 Environmental Protection Network holds a presser on the impacts a government shutdown would have on the EPA.
Sept. 29 The Harvard Kennedy School Belfer Center will host a discussion, featuring former Federal Energy Regulatory Commission Chairman Neil Chatterjee, on energy demand.
Sept. 30 Politico holds a transportation policy briefing.
Sept. 30 Brookings to host a forum on “Leveraging US-Africa critical mineral opportunities: Strategies for success.”
Sept. 30 R Street holds an event on “Permitting Reform: Addressing the Energy Demand Challenge.”
Oct. 1 The Joint Ministerial Monitoring Committee of OPEC meets to discuss oil production moves.
Oct. 1 The Senate Energy Committee’s Public Lands, Forests, and Mining Subcommittee holds a hearing on pending legislation.
Oct. 3 Comment period deadline for the EPA’s proposal extension of compliance for oil and gas sector methane emissions controls.
RUNDOWN
Washington Examiner Trump coming up short on promise to cut electricity costs as prices keep climbing
Inside Climate News With Federal Support for Wind and Solar Waning, States Are Trying to Push Policy Through on Their Own
The New York Times Electric Vehicles Face a ‘Pretty Dreadful Year’ in the U.S.