WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! With the help of our editor, Joe Lawler, we are kicking it off with some news from the White House stating that the Environmental Protection Agency will cut 65% of its spending, not employees, after President Donald Trump warned the agency could lay off more of its workforce.
Meanwhile, in today’s Daily on Energy, we also take a look at Congress ending the EPA’s methane emission fee rule that Republicans argue is an attack on American energy.
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.
WHITE HOUSE CLARIFIES EPA ADDITIONAL LAYOFFS: The Environmental Protection Agency will not cut 65% of its workforce, as suggested yesterday, but rather will slash 65% of its spending, the White House told Reuters.
During yesterday’s cabinet meeting, President Donald Trump said EPA Administrator Lee Zeldin is thinking of laying off 65% of the agency’s employees. He said that many EPA employees have failed to do their jobs or didn’t exist to begin with.
But White House spokesperson Taylor Rogers clarified the president’s statement.
“President Trump, DOGE, and Administrator Zeldin are committed to cutting waste, fraud, and abuse across all agencies,” Rogers told Reuters. “After recently identifying $20 billion in fraudulent spending, Administrator Zeldin is committed to eliminating 65% of the EPA’s wasteful spending.”
Zeldin has claimed that billions of dollars were improperly distributed under the Greenhouse Gas Reduction Fund, a fund that helps develop energy projects in low-income communities.
Rogers noted that, along with spending cuts, there will still be additional layoffs. The EPA has already let go almost 400 probationary employees and placed 200 environmental justice workers on leave, Reuters reported.
OIL PRICES RISE AFTER TRUMP PULLS VENEZUELA OIL LICENSE: Oil prices increased more than 2% today after Trump announced his plans to cancel the Venezuela oil deal yesterday.
Brent crude oil futures were up $1.53, or 2.1%, at $74.06 a barrel this afternoon, Reuters reported. U.S. West Texas Intermediate crude oil futures rose $1.64, or 2.4%, to $70.26.
Yesterday, Trump on social media said the administration would look to reverse an oil deal that his predecessor, former President Joe Biden, made with Venezuelan President Nicolás Maduro in November 2022. Trump is referring to a concession agreement that granted a production and selling license to Chevron Corp. to operate in the country.
Trump said he would be revoking the license over “electoral conditions within Venezuela” and for the country’s failure to return “violent criminals that they sent into” the U.S. The agreement will be terminated on March 1st.
The termination of the deal could lead to a new agreement between Chevron and Venezuela’s state oil company to export crude to destinations other than the U.S., sources close to the talks told Reuters.
Also, China and Mexico tariffs are a go: Trump posted on Truth Social this morning that tariffs on Mexico and Canada will take effect on March 4.
As a reminder, the tariffs are 25% on imports, but with a 10% rate on energy imports from Canada.
Trump also said he would impose an additional 10% tariff on imports from China.
The tariffs would apply to 69% of crude oil imports.
EPA’S METHANE EMISSION RULE NEARING THE END: The Senate today voted to reverse a Biden-era Environmental Protection Agency rule that imposes a methane emissions fee on oil and natural gas facilities.
Senators voted 52-47 to pass Sen. John Hoeven’s bill to undo the EPA’s methane emission fee rule, which would impose an annual fee on oil and gas facilities that emit methane emissions exceeding a certain threshold. The regulation was implemented as part of the Inflation Reduction Act.
The House yesterday voted to pass a companion bill introduced by Rep. August Pfluger of Texas. The bill will now be sent to the Oval Office for Trump to sign. Republicans argue that the regulation is an attack on domestic energy production by the previous administration.
The Congressional Budget Office said eliminating the fee would reduce revenues to the Treasury by nearly $7.5 billion over the next few years.
The legislation is part of a list of regulations that Republicans are seeking to overturn through the Congressional Review Act (CRA), a special legislative process to bypass the filibuster that requires a simple majority vote in both chambers of Congress.
Another CRA bill… House lawmakers this morning voted to cancel a set of energy efficiency standards for gas-powered tankless water heaters implemented by the Biden administration that Republicans say would drive up prices.
The House voted 221-198, with two members voting “present,” to overturn the “Energy Conservation Standards for Consumer Gas-fired Instantaneous Water Heaters,” a set of rules established by the Energy Department requiring a minimum efficiency level for gas-powered tankless water heaters.
Republican Rep. Gary Palmer introduced the resolution under the CRA. Republicans argued that the regulation would place financial burdens on consumers and limit consumer choice.
BP BOSS SEEKS TO DOUBLE MARKET CAP FOLLOWING TURN FROM GREEN ENERGY: BP CEO Murray Auchincloss told the Financial Times that he aims to more than double the company’s market capitalization within five years to $200 billion, restoring it to where it was before the 2010 Deepwater Horizon catastrophe.
He made the comments a day after announcing that BP would scale back its investments in renewable energy and refocus on fossil fuels.
“Oil and gas demand is going to be around for a long time,” he said.
The response to BP’s pivot this week, in terms of its share price, has been muted.
Auchincloss also pushed back against the criticism that BP has fallen well behind its peers in terms of market cap. “Our size is smaller, but the quality of our assets is exceptionally high,” he told the FT.
YOUTH CLIMATE LITIGATION UPDATE – VIRGINIA CASE REJECTED: The Virginia Supreme Court yesterday declined to revive a youth climate lawsuit against the state for permitting fossil fuel projects, E&E News reports.
In the case, Layla H. v. Commonwealth of Virginia, youth argued that the state had violated their constitutional rights by permitting the use of fossil fuels, contributing to climate change.
ICYMI – DEMOCRATS FAIL TO END TRUMP’S ENERGY EMERGENCY BILL: Senate Democrats’ attempt to terminate Trump’s energy emergency declaration failed yesterday evening.
Democratic Sens. Tim Kaine and Martin Heinrich offered a joint resolution seeking to terminate the executive order, signed by Trump on his first day in office as he pursues “energy dominance” with the development of fossil fuels.
The joint resolution failed in a 47-52 vote that fell along party lines. The bill had little chance of passing, given the Democrats’ minority in the chamber, but the move forced Republicans to vote on an order that Democrats say will harm U.S. energy and the environment.
Since entering office, Trump has taken executive action to undo many of Biden’s climate policies. At the same time, Republicans in Congress are also seeking to reverse many Biden regulations.
Democrats argued that the administration’s efforts will harm clean energy jobs and lead to a rise in greenhouse gas emissions.
RUNDOWN
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