WHAT’S HAPPENING TODAY: Good afternoon and Happy Wednesday, readers! Hope you didn’t stay up too late on Election Day.
But it’s official – former President Donald Trump defeated Vice President Kamala Harris in the 2024 presidential election, winning in three key swing states: Wisconsin, Pennsylvania and Georgia. Republicans also flipped the Senate, but the race for control of the House has yet to be decided.
In today’s edition of Daily on Energy, Callie and Maydeen look at several energy and environment ballot measures that voters decided on last night. We also cover oil and renewable energy immediate reactions within the market and on Wall Street to Trump being declared the next president of the United States.
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.
WASHINGTONIANS VOTE TO KEEP ‘CAP-AND-INVEST’: Voters in Washington last night rejected an initiative that would have repealed the Washington Climate Commitment Act, or CCA, a state law that provided for a cap-and-invest program to reduce greenhouse gas emissions.
As of last night, 62% of Washington residents voted against Initiative 2117. Gov. Jay Inslee, a Democrat, signed the CCA into law in May 2021 and it went into effect in 2023.
The CCA sets a cap on emissions in the state, with the goal of reducing greenhouse gas emissions by 95% by 2050. Under the program, businesses are required to obtain allowances for their emissions. Revenue from purchased allowances is reinvested into clean energy.
Let’s Go Washington was the organization campaigning to repeal the CCA, arguing that the program has led to high gas and utility prices for state residents.
Read more from Maydeen here.
SOUTH DAKOTA VOTE AGAINST CARBON PIPELINE MEASURE: South Dakota residents voted to repeal Senate Bill 201, a state law that would ease the path for the construction of a major carbon pipeline across the Midwest, a highly controversial project.
Voters favored no on the “Regulation of Carbon Dioxide Pipelines Referendum,” a referendum on legislation making it easier for carbon pipeline companies and other developers to build projects by superseding local permitting restrictions. As of this morning, South Dakota residents were on track to vote about 60% in favor of repealing Senate Bill 201.
The bill was intended to help construct the Iowa-based Summit Carbon Solutions’ proposed 2,500 mile pipeline. The project would send carbon emissions from 50 ethanol plants in Iowa, Minnesota, Nebraska, North Dakota, and South Dakota to be buried underground in North Dakota.
Summit Carbon Solutions told the Washington Examiner it nevertheless plans to reapply for a permit in South Dakota on Nov. 19 after being denied last year.
Read more from Maydeen here.
CALIFORNIANS VOTE FOR $10 BILLION IN GREEN BONDS: California voters have chosen to authorize the state to issue $10 billion in bonds for climate projects despite critics warning it would impose long-term financial burdens on the state.
As of Wednesday afternoon, 57.9% of California residents voted for Proposition 4, which needed 50% of votes to pass, according to the New York Times. California will now be authorized to issue billions of dollars in bonds to safeguard drinking water, wildfire prevention, environment restoration, and other climate projects.
But Sen. Brian Jones, a top opponent, stated that the measure would create long-term financial burdens for the state.
“Prop 4 places a significant financial burden on California taxpayers, costing us $20 billion over the bond’s lifetime,” Jones stated. “While I’m disappointed it ultimately passed, I respect the will of the voters and am committed to fulfilling it. As Senate Minority Leader, I will lead my caucus to ensure these funds are used responsibly and efficiently to deliver the greatest possible benefit to Californians.”
Read more from Maydeen here.
OIL PRICES REACT TO TRUMP VICTORY: Oil prices plunged on Wednesday after former President Donald Trump was declared the winner of the 2024 Presidential Election.
Just before 8:30 am EST, prices for benchmark Brent crude fell by 2.6%, trading at $73.59, according to the Wall Street Journal. West Texas Intermediate had also fallen by 2.8% to $69.99 per barrel. Analysts have attributed the price drops to Trump’s win, with Mukesh Sahdev of Rystad Energy reportedly saying it “reflects expectations of increased U.S. supply and a potential demand slowdown tied to a tariff-driven approach toward key trading partners, particularly China.”
Around midday, after news of the U.S. election results began to settle, oil began to rise again, with Brent hitting $75.38 and WTI reaching $72.08 around 12:30 pm EST.
BERKELEY NATURAL GAS TAX FAILS: Residents of Berkeley, California, have rejected an effort to tax large buildings for using natural gas to boost the use of renewables over fossil fuels – seemingly reversing the city’s attitude toward natural gas.
The details: The initiative, which appeared on the ballot Tuesday as Measure GG, would have adopted a tax of $2.9647/therm of natural gas consumed by large buildings at least 15,000 square feet. Single-family residences, government buildings, and residential buildings with at least 50% affordable units were set to be exempt from the tax. The tax would have been adjusted for inflation on an annual basis, with the funds going towards decarbonization programs. It was expected to generate around $26.7 million in its first year and last until 2050.
The measure needed a simple majority of 50% of voters to pass, but it dramatically failed in a win for supporters of gas stoves and natural gas hookups. With 100% of the city’s voting precincts reporting, 68.25% of Berkeley voters rejected the proposal. Only 31.75% of voters cast their ballots in favor of the tax.
Some background: The use of natural gas through gas stoves and heating has faced increasing criticism across the country as Democratic-led cities and states have moved to impose restrictions. In 2019, Berkeley actually became the first city in the nation to pass a ban on natural gas hookups in new buildings. New York state passed a similar ban just two years later.
RENEWABLES TAKE A DIVE OVER GOP WINS: Investors appear to be growing concerned over the effect of a new Trump presidency Wednesday morning, as shares of numerous renewable energy firms fell dramatically.
The details: Within the U.S., solar companies Sunnova Energy International Inc. and First Solar saw their shares drop by around 23% and 14% respectively, according to Bloomberg. Hydrogen fuel cell developer Plug Power Inc. also saw shares drop by 14%, while some international firms saw even greater hits.
Leading Danish wind turbine manufacturer Vestas reportedly saw its shares drop by nearly 10%, according to Fortune. Similarly, Danish wind giant Orsted saw a big blow to its shares, which dropped by around 14%.
With Republicans sweeping the White House, House of Representatives and Senate, energy executives have low hopes to see strong momentum for renewables in the next four years. “The world has changed in the past 24-hours,” said Rob West, CEO of Thunder Said Energy, according to Bloomberg. “Momentum behind many energy transition themes has been slowing in 2024. It is now harder to see a re-acceleration.”
Some background: Throughout the election cycle, Trump campaigned against renewable energy sources like offshore wind and promised to roll back green projects on his first day in office. In May, Trump promised to immediately end offshore wind projects, saying he would issue an executive order to stamp out new development over the risks to marine life. Trump has also said he will push to scrap unspent funds from the Democratic-passed Inflation Reduction Act, which has grants and incentives earmarked for solar, battery, transmission, and EV projects.
ICYMI – IRAQ MOVING OIL FROM KURDISH REGION: Iraq has reportedly called for the oil produced in Kurdistan to be delivered to a state-run firm in Baghdad after deliveries of crude from the region have been suspended for over a year.
The details: The Iraqi cabinet confirmed on Tuesday that the Kurdish region has been ordered to immediately transfer its oil output to the State Organization for Marketing of Oil (SOMO) through the Kurdistan Regional Government’s (KRG) pipeline, according to Reuters. The cost Baghdad will have to pay for the oil has yet to be set. However, Iraq’s cabinet has reportedly set a budget to settle up with the Kurdish government, with Baghdad set to pay a rate of $16 per barrel.
Deliveries of crude through the Kurdish region’s pipeline had been halted since March of 2023 amid tensions between Iraq and Turkey over power in the region for delivering crude. Last year, the International Chamber of Commerce ruled in favor of Iraq, ordering Turkey to pay damages worth up to $1.5 billion over unauthorized exports. Restarting deliveries via the Kurdish pipeline had reportedly been delayed by demands from foreign companies, the Kurdish government and Iraqi government.
RUNDOWN
CNN There’s a mind-bending Soviet-era oil rig city ‘floating’ on the planet’s largest lake
Reuters How is Lahore, the world’s most polluted city, battling toxic air?
Inside Climate News In Hurricane-Battered Florida, Voters Cast Ballots Amid Wind and Flood Damage