WHAT’S HAPPENING TODAY: Good afternoon and Happy Monday, readers. December is in full swing, with 2025 just over three weeks away. As we gear up for another busy week in our nation’s capital, we’re keeping our eyes on arguments before the Supreme Court tomorrow in a case taking up a decades-old environmental law.
Today’s edition of Daily on Energy also takes a look at an update within the electric vehicle market, as the Chinese giant BYD is on track to surpass major established manufacturers in sales. Plus, since it’s Monday, keep reading to find out what we are keeping track of this week on Capitol Hill and elsewhere.
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.
CANCER-CAUSING CHEMICALS BANNED BY EPA: The Environmental Protection Agency has moved to ban two chemicals commonly used in everyday products, such as dry-cleaning materials, that have been found to cause cancer and a number of other life-changing diseases.
The details: The agency finalized rules ordering the ban Monday, aligning with President Joe Biden’s “cancer moonshot” whole-of-government initiative to fund cancer research and dramatically lower cancer death rates across the United States.
Under the final rules, the EPA has banned all use of a chemical called trichloroethylene (TCE), which is known to cause liver cancer, kidney cancer, non-Hodgkin’s lymphomas, and damage to the central nervous system, reproductive organs, and more. The chemical is a solvent commonly used in everyday products for furniture care, cleaning, or crafts, such as paints, sealants, degreasers, and more.
The finalized rule also bans the commercial and consumer use of perchloroethylene (PCE). This toxic chemical is also known to cause liver, kidney, brain, and testicular cancer, as well as damage to the immune system, kidney, and liver; neurotoxicity; and reproductive toxicity. PCE is widely used in products such as brake cleaners and adhesives and is commonly used in dry cleaning. The rule orders this use of PCE to be phased out over 10 years.
Key quote: “It’s simply unacceptable to continue to allow cancer-causing chemicals to be used for things like glue, dry cleaning, or stain removers when safer alternatives exist,” Assistant Administrator for the Office of Chemical Safety and Pollution Prevention Michal Freedhoff said in a statement. “These rules are grounded in the best-available science that demonstrates the harmful impacts of PCE and TCE. EPA continues to deliver on actions that protect people, including workers and children, under the nation’s premier bipartisan chemical safety law.”
Read more from Callie here.
CHINESE EV MAKER BYD SET TO OUTPACE FORD AND HONDA IN SALES: Chinese electric vehicle maker BYD is on pace to surpass Honda and Ford in global annual sales for 2024.
Reuters reported Monday that BYD will reach its 4 million vehicle sales target by the end of the year. The automaker’s competitive models, such as its plug-in hybrid technology, have helped boost sales.
Last month, BYD hit a new record high with passenger vehicle sales up 67.2% year-on-year to 504,003 units while its competitor Tesla’s sales fell 4.3% year-on-year to 78,856.
BYD projected sales display the scale of the struggle the United States faces in competing with China in the electric vehicle market. Both Biden and President-elect Donald Trump have attempted to hinder China’s market by imposing high tariffs on their EVs to help spur domestic EV manufacturing.
In his next term, Trump has promised to extend high tariffs on Mexico and Canada, in addition to China, to block Chinese vehicles from being manufactured in North America and entering the U.S.
Read more by Maydeen here.
CORE ENVIRONMENTAL LAW AT RISK IN CASE BEFORE SUPREME COURT THIS WEEK: The National Environmental Policy Act is at the center of a case appearing before the Supreme Court on Tuesday, which could significantly limit the bedrock environmental protection law.
The details: Tomorrow, the high court is hearing arguments in Seven County Infrastructure Coalition v. Eagle County. The justices have been asked to decide if downstream or upstream environmental effects should be considered when obtaining approval for a project – in this case a proposed crude oil railway.
The rail would run around 88 miles from the Uinta Basin oil fields to various nearby refineries and the national railway network transporting crude to the Gulf of Mexico. If approved, the railway is expected to quadruple production of crude from the basin in Utah, per Inside Climate News. With increased production comes increased environmental risks, opponents to the railway say.
A U.S. court of appeals sided with critics and environmentalists last year, halting any progress on the project. The court ruled that the Surface Transportation Board, which reviewed and approved the railway in 2021, failed to consider the downstream effects of the project, such as on air quality. The case was sent to the Supreme Court after a coalition of seven counties in Utah appealed that ruling.
Why it matters: NEPA was signed into law in 1970, and has remained at the foundation of a number of environmental rules, rulings, and laws put in place in the decades since. It requires federal agencies to assess the environmental impacts of a project before supplying approval. In recent years, it has been hotly debated in Congress, with many Republicans seeking to scale it back to eliminate permitting roadblocks and hurdles.
Key quote: “Seven Counties goes to the heart of environmental impact analyses,” John Ruple, law professor and program director at the University of Utah’s Wallace Stegner Center for Land, Resources and the Environment, told Inside Climate News. “No one likes long and expensive environmental reviews, but environmental reviews are there to protect the quality of the air we breathe and the water we drink. They make disasters like Love Canal less likely. There are plenty of ways to make NEPA work better without watering down protection in the name of efficiency.”
It’s not clear how the Supreme Court may rule in the case, though the conservative-majority court more recently opted to weaken authority federal regulators and agencies have through the Chevron doctrine. No matter the decision, it will likely have large consequences for future infrastructure projects involving fossil fuels.
CARBON CAPTURE TO STAY IN NEXT ADMINISTRATION: Thanks to the Democratic-passed Inflation Reduction Act, carbon capture and storage technology has seen a boom of development and success in recent years. While funding may be at risk under the incoming Trump administration, industry experts say they are confident the tech is here to stay.
The details: Executives within the carbon capture and storage industry spoke with E&E News to explain why their tech can continue to thrive under a fossil fuel-dominated energy agenda. While Trump is expected to abandon notable climate goals, such as the Paris Agreement, utility operators are still subject to local, state, and company targets.
Particularly as coal plant retirements may be pushed back and the “drill, baby, drill” agenda is implemented to meet energy demand, these executives are confident their tech can help utilities meet current climate targets.
“CCS is a deployable solution to address that demand for decarbonized power,” said Jarad Daniels, CEO of the Global CCS Institute think tank. “We are optimistic that CCS will continue to be viewed as a key part of an ‘all of the above’ strategy to meet U.S. energy goals and for U.S. businesses to remain economically competitive in an increasingly global low-carbon world.”
Ben King, associate director of the Rhodium Group’s energy and climate practice, also told E&E News that historically the industry has “support from both sides of the aisle.” He indicated this will encourage further developments in the next four years.
Support in Congress: Last month, a bipartisan bill put forth in the Senate indicated more Republicans were in favor of expanding tax credit for such projects. The bill, the Carbon Dioxide Removal Investment Act, was introduced by Sens. Michael Bennet, a Colorado Democrat, and Lisa Murkowski, an Alaska Republican. The lawmakers insisted this week that carbon dioxide removal is key for the United States to meet climate goals.
BIDEN ADMINISTRATION ANNOUNCES LAST-MINUTE ANWR LEASE AUCTION: The Department of the Interior announced it would hold an oil and gas auction for 400,000 acres of the 1.6 million acres available in the Arctic National Wildlife Refuge on Jan. 9, just weeks before Trump is set to take office.
In a press release, DOI said 400,000 acres is the minimum amount required by the 2017 Tax Cuts and Jobs Act. But Earthjustice attorney Erik Grafe spoke out against the auction.
“Drilling for oil in the Arctic National Wildlife Refuge is all risk with no reward,” Grafe said.
“We’re committed to going to court as often as necessary to defend the Arctic Refuge from oil drilling and will work toward a more sustainable future that does not depend on ever-expanding oil extraction,” he added.
The move could make it challenging for the incoming Trump administration to auction additional land in the region. Setting up a new sale and undergoing environmental studies could take years.
The U.S. Geological Survey estimates the region contains 7.7 billion barrels of technically recoverable oil on federal lands, which has lured the interest of oil and gas groups.
Some background: In 2017, Congress directed the department to hold two sales before the end of 2024. During Trump’s first term, the administration lease sale resulted in nine leases being issued, with only two oil companies placing bids. Yet, the Biden administration reviewed and suspended all nine sales.
BP CREATES JOINT VENTURE WITH JAPAN’S JERA: BP agreed to a partnership with Japanese power generator JERA that would establish one of the largest global offshore wind developers and operators.
The joint venture, called JERA Nex bp, is expected to have a total 13 gigawatt net generating capacity, the companies said. The partners also agreed to invest up to $5.8 billion in funding for wind projects.
“We are very pleased to have reached agreement with JERA to form a top five wind developer globally,” BP chief executive officer Murray Auchincloss said. BP has developed an offshore wind pipeline of 9.6GW net.
“This will be a very strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders. We very much look forward to combining our strengths in Europe and Asia-Pacific to create another innovative platform,” Auchincloss added.
JERA currently operates wind farms in Belgium, Germany, Japan, and Taiwan. BP and JERA’s partnership is expected to be completed by the end of 2025.
“The sector is at an inflection point, and we believe the transformative partnership launched today between our two companies combines the resources, capabilities, and network necessary to be a world-class offshore wind company, and in doing so, realise the potential of offshore wind globally, while positioning this business for long term success,” said Yukio Kani, CEO of JERA.
A LOOK AHEAD:
Dec. 9 The Department of the Interior announced an oil and gas auction for 400,000 acres in the Arctic National Wildlife Refuge on Jan. 9.
Dec. 10 Supreme Court is hearing arguments in Seven County Infrastructure Coalition v. Eagle County.
Dec. 10 The House of Representatives takes up H.R. 7673 – the Liberty in Laundry Act – which looks to ban enforced energy standards on washing machines.
Dec. 10 The American Gas Association will hold a virtual press conference on the company’s visions for the natural gas industry next year.
Dec. 11 Center for Strategic & International Studies will host “Powering the Commanding Heights: Towards an American Strategy For Electric Demand Growth.”
Dec. 11 The Environmental and Energy Study Institute (EESI) is poised to hold a virtual briefing improving biodiversity and river health along the Tennessee River.
Dec. 12 The U.S. Energy Association will host the “Advanced Energy Technology Showcase.”
Dec. 12 The International Energy Agency is poised to release its monthly oil market analysis.
Dec. 12 SAFE, the Energy Security Leadership Council, Americans for a Clean Energy Grid, and Conservative Energy Network are hosting a webinar on permitting reform.
Dec. 13 The Institute for Policy Studies to host a virtual event on rare earth elements and war.
RUNDOWN
The Washington Post Small SUVs are now the country’s cleanest cars. Really.
The New York Times Nobody Is Coming to Save Us
Chicago Tribune Imperiled wetlands save the Midwest billions in flood damage costs, study shows, but they’re disappearing