WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! We hope you had a restful Memorial Day weekend. In today’s Daily on Energy, we take a look at Energy Secretary Chris Wright’s order to keep a Michigan coal plant operating just days before it was set to close. The decision is aligned with the Trump administration’s promise to keep aging coal plants operating.
Meanwhile, we also take a look at the Supreme Court’s decision to reject members of the San Carlos Apache Tribe’s bid to block a copper mine project, which they argue would destroy sacred land.
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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.
JUDGE BLOCKS TRUMP ADMINISTRATION FROM ENDING NYC CONGESTION PRICING: A federal judge has temporarily blocked the White House from forcing New York to end its congestion pricing program, keeping it in place for at least two more weeks.
The details: Judge Lewis Liman ruled in favor of the Metropolitan Transportation Authority (MTA) today, granting its request for a temporary restraining order against the Trump administration, according to the New York Times. In his ruling, Liman said the state would suffer from “irreparable harm” if the order was not granted, and reportedly indicated a longer-term order protecting the tolling program could be issued in the future.
Liman’s ruling essentially allows the program to remain in place until at least June 9, and blocks the Trump administration from withholding federal funding if it is not ended before then. Attorneys for the federal government have said they will comply with the ruling.
Some background: In January, New York City implemented its congestion pricing program in order to reduce traffic congestion during peak hours. This imposes a tax starting at $9 for motorists, with the funds collected expected to be used to repair the city’s subway system. President Donald Trump and his administration have repeatedly taken aim at the program, calling on the state to lift the toll.
Earlier this month, Transportation Secretary Sean Duffy threatened several penalties against the state if Gov. Kathy Hochul refused to lift the program by the end of May, including a halt in National Environmental Policy Act approvals for projects in Manhattan.
MICHIGAN COAL PLANT ORDERED TO STAY OPEN AT LAST MINUTE: The Trump administration is following through on its promise to keep aging coal plants from shutting down, as the Department of Energy has demanded that a Michigan coal facility remain open, just days before it was set to close.
The details: In the order signed by Energy Secretary Chris Wright on Friday, DOE demanded utility Consumers Energy and the Midwest grid operator (MISO) keep the J.H. Campbell power plant in West Olive, Michigan, open until at least August 21. Consumers Energy had planned to close the 1,560 megawatt plant on May 31 as part of the utility’s plans to end its use of coal.
The decision stemmed from the Energy Department’s determination that there is an energy emergency in parts of the Midwest, with the region facing tight electricity reserve margins during this summer. To support this, DOE cited a report issued by the North American Electric Reliability Corporation (NERC) earlier this month that said the region is at an elevated risk of power outages during high demand or lower power output periods through August.
Local pushback: The order from DOE aligns with the Trump administration’s push to utilize fossil fuels like coal to support the grid as it faces strain from soaring energy demands, pushing aside renewable alternatives like wind and solar. The administration has defended this through its declaration of a national emergency. However, local utility regulators have called into question whether there is an emergency at all and warn that keeping the expensive plant open could raise costs for consumers.
Typically, DOE will issue such orders after receiving a request from a utility, grid operator, transmission provider, or even the plant owner. In the case of the Campbell coal plant, no request was made with the federal government.
Dan Scripps, chair of the Michigan Public Service Commission, told Axios that there is no existing energy emergency in the state of Michigan or the MISO region. Some activists have since accused the administration of abusing its emergency authorities to advance a political agenda.
“This blatant act of federal overreach—forcing the plant to stay online—is being imposed against the wishes of Michigan consumers, businesses, regulators, and elected leaders,” Sierra Club Michigan Campaign Organizer Bryan Smigielski said in a statement.
Consumers Energy is planning to comply with the administration’s order to delay the closure. In the meantime, nonprofit watchdog group Public Citizen has said it plans to challenge the order with the Federal Energy Regulatory Commission.
SUPREME COURT BLOCKS BID TO STOP ARIZONA COPPER MINE: The Supreme Court rejected a bid from members of the San Carlos Apache Tribe to block a large copper mining project in Arizona that the tribe argued would destroy a sacred site, E&E News reports.
The high court denied an appeal brought by the nonprofit group Apache Stronghold. The group argued that the project would violate the Religious Freedom Restoration Act, as the mine is planned to be built over sacred land, also known as Oak Flat.
The Resolution Copper mine project is meant to extract 40 billion pounds of copper over 40 years. The deposits exist 5,000 to 7,000 ft below the surface.
The majority of justices rejected the petition. However, Justice Clarence Thomas and Justice Neil Gorsuch joined in a dissent that said they would have granted the petition. Justice Samuel Alito did not participate in the decision.
In the dissent, Gorsuch said the decision was a “grave mistake.” He added that the case meets standards that the justices apply when assessing petitions.
“The decision below is highly doubtful as a matter of law, it takes a view of the law at odds with those expressed by other federal courts of appeals, and it is vitally important. Before allowing the government to destroy the Apaches’ sacred site, this Court should at least have troubled itself to hear their case,” Gorsuch wrote.
GREENLAND MAY TURN TO CHINA IF U.S. & EUROPE DON’T COME THROUGH ON MINING: If mining companies in the United States and European Union fail to invest in Greenland to extract valuable critical minerals, the island may end up turning its attention to the Far East.
The details: Greenland’s minister for business and mineral resources, Naaja Nathanielsen, told the Financial Times in a recent interview that the island is in need of foreign investment to develop and diversify its mineral and business industries.
‘‘We do want to partner up with European and American partners,” Nathanielsen said, indicating that the island might turn its sights to China. “But if they don’t show up I think we need to look elsewhere.”
Greenland is home to many rare earth minerals that are used in the production of electric vehicles, wind turbines, military equipment, batteries, and more. The territory is reportedly home to reserves of approximately 43 out of 50 minerals that have been deemed critical by the United States.
Western pressure: The island is a territory of Denmark, but has been granted extensive autonomy and has the right to declare independence at any time. Earlier this year, Trump expressed interest in purchasing Greenland, insisting that it would be critical for national security.
While Greenland is looking for more partnership with the U.S. for its minerals sector, Trump’s taunts put more pressure on potential negotiations. Nathanielsen told the Financial Times that she views the president’s proposal to take over Greenland as “disrespectful and distasteful.”
Key quote: “We are trying to figure out, what does the new world order look like? In those terms, Chinese investment is of course problematic, but so, to some extent, is American,” Nathanielsen told the Financial Times. “Because what are the purpose of [the US investments]?”
EU NATIONS AGREE TO SOFTENED CARBON TARIFF: All members of the European Union have reportedly agreed to support plans to change the bloc’s carbon tariff, exempting most companies from paying a hefty fee under its carbon border adjustment mechanism (CBAM) set to go into effect in 2026, according to Reuters.
The agreement comes just days after the European Parliament said it would also back the changes to soften the CBAM regulations, which require all individuals or companies importing covered goods with a value greater than 150 euros ($170) to pay the tariff. The changes, first introduced by the European Commission in February, would exempt any companies that import less than 50 metric tons annually of its covered goods. This exempts roughly 90% out of 200,000 importers from the carbon fee.
The bloc has insisted that the softened rules won’t negatively affect the tariff’s intended goals, as the remaining 10% of importers account for over 99% of emissions associated with the regulations.
With EU ministers in agreement with parliament and the commission, it is highly likely that the bloc will move forward with the changes in the coming weeks.
RUSSIA MAY BE PLANNING TO RESTART OCCUPIED UKRAINIAN NUCLEAR PLANT: Satellite images reportedly show that Russia is taking steps to restart the Zaporizhzhia nuclear power plant in southeastern Ukraine, which Moscow forces seized in March 2022.
The details: A new Greenpeace report reviewed by the New York Times includes satellite imagery that shows new power lines being built in the same region as the power plant. The images indicate that Russia is planning to link the nuclear plant to its own energy grid.
Since February, Russia has reportedly been building over 50 miles of electricity lines between the cities of Mariupol and Berdyansk, both of which are occupied by Russia. The Greenpeace report suggests that Russia intends to connect these lines to a substation near Mariupol that had been connected to the nuclear facility.
Some background: The Zaporizhzhia plant is the largest nuclear power plant in all of Europe, with six reactors that can generate up to six gigawatts of power. The plant had been generating nearly a quarter of Ukraine’s electricity before Russia invaded the country over three years ago. All six reactors were closed by 2023.
As the plant remains near the front lines of the war in Ukraine, experts have warned against restarting the reactors. According to the New York Times, the plant and surrounding infrastructure would need to undergo critical repairs such as replacing equipment. Additionally, the plant lost the main water source used to cool the reactors and spent fuel rods when a nearby dam on the Dnipro River was destroyed in 2023.
“Any attempts by Russian representatives to restart power units could lead to unpredictable consequences,” Ukrainian energy minister Herman Galushchenko told the outlet.
ICYMI – CHINESE BYD SETS SWEEPING DISCOUNTS: Chinese electric vehicle company BYD announced sweeping discounts over the weekend for more than 20 car models.
The price cuts are as much as 34%. BYD offered discounts on both hybrid and plug-in vehicles until the end of June. The carmaker’s cheapest vehicle, the Seagull hatchback, is now priced at $7,780, down from around $10,000.
Citi analysts expect the reduction in price to increase foot traffic in the dealership by 30 to 40%. But the company’s decision to reduce prices led to BYD’s shares dropping almost 9% on Monday. Investors fear that the company’s discounts will lead to a price war in China’s EV market.
A LOOK AHEAD:
May 27 – 28 The 6th Annual American LNG Forum is scheduled to take place in Houston, Texas.
May 27 – 29 The Louisiana Energy Conference is set to take place in New Orleans.
May 28 The Women’s Council on Energy and Environment is holding a panel discussion on sustainable cities.
May 28 The Center for the National Interest is hosting a webinar on EU assessments of the Iberian Blackout in late April.
May 28 RMI is hosting a webinar looking at electric vehicle charging infrastructure in India and its role in accelerating India’s electric mobility transition.
May 29 – 30 The 5th American Hydrogen Forum is scheduled to be hosted in Houston, Texas.
May 30 The 2025 Reagan National Economic Forum will be hosted in Simi Valley, California, featuring a discussion titled “Powering Tomorrow; Beyond the Current Energy Debate.”
June 1 Hurricane Season officially begins.
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