WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! The MLB Playoffs officially kick off today with the wild card series. Callie’s Red Sox and Maydeen’s Dodgers are both vying for a chance to advance to the World Series, taking on the New York Yankees and Cincinnati Reds respectively this week. If you find it hard to reach us after hours this week, you know why.
It’s also a big day for the electric vehicle industry, as it is the last day prospective buyers can obtain federal tax credits for purchasing new or used EVs. While EV sales have jumped in the last few months, analysts are expecting sales to decline soon.
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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.
ELECTRIC VEHICLE TAX CREDITS’ LAST DAY: Today is the last day consumers can acquire tax credits for purchasing new or used electric vehicles.
As a reminder: President Donald Trump’s One Big Beautiful Bill Act, signed in July, repealed the 2022 Inflation Reduction Act EV tax credits, which offered consumers up to $7,500 for buying a new EV and $4,000 for a used one. The credits were intended to encourage consumers to purchase battery-powered vehicles.
EV Sales: In the months leading up to the tax credit’s expiration, there has been a rise in EV sales as customers rushed to take advantage while they still can. Rho Motion found that EV sales in North America, which includes the U.S., Canada, and Mexico, rose by 6% year-to-date as of last month.
Cox Automotive projects that EV sales from July to September are up 21.1% from the same period last year, and up 30% compared to this spring.
However, experts expect a decline in EV sales once the tax credits expire.
Loren McDonald, CEO and chief analyst at EV charging data firm Chargeonomics, said via email that EV sales will “clearly be down” over the next few quarters.
Some leeway for consumers: Those who purchase EVs before the expiration have been provided some flexibility from the Internal Revenue Service.
In August, the IRS modified the phase-out of the electric vehicle tax credits, stating that if a consumer has a written binding contract in place and payment has been made on or before the expiration date, then the buyer may still claim the credit. That means buyers will be able to receive the tax credit even if the car is delivered after today.
What are they saying: Plug In America executive director Joel Levin said “EVs are here to stay, with or without the federal tax credits. Ask anyone in the auto industry and you will hear the same thing: it’s just a question of pacing and where the cars will be built–here or abroad.”
“Surveys consistently find that 9 out of 10 EV drivers intend to stick with electric vehicles because they love the experience so much. The rest of the world is going electric rapidly. Our auto manufacturers will need to move ahead quickly with EV technology if we expect to stay competitive. This will be harder without supportive policies but still possible,” Levin added.
Read more from Maydeen about the EV tax credit expiration here.
TRANSPORTATION DEPARTMENT TO CANCEL BIDEN GRANTS: During a Politico event this morning, Deputy Transportation Secretary Steven Bradbury confirmed that the agency plans to cancel several grants approved by the Biden administration.
The details: Under former President Joe Biden, DOT approved, but did not finalize, more than 3,200 grants for a number of projects, including those for electric vehicle infrastructure, bike lanes, and more. Bradbury described this as a “historic backlog” for the Trump administration to sort through, many of which will move forward if consistent with the law and aligned with the president’s agenda. So far, DOT has finalized around 1,500 of the grants.
“We’re moving as quickly as we can, and in some cases, we’ve adjusted the scope and nature of what’s being funded, but the basic project is still moving forward,” Bradbury said, warning not all projects will receive the awards. “It’s a small number relative to the large mass that we’re deciding to withdraw or not move forward.”
Plus…on the transition to EVs: During the same event, Bradbury slammed the Biden administration for what he described as “coercing” the automotive industry to accelerate the phase-out of gas vehicles and replace them with EVs. He called Biden-era emissions standards as a “regulatory lever” to force automakers into converting more of their production to hybrid vehicles or EVs.
Bradbury specifically targeted the Biden administration’s efforts to update the Corporate Average Fuel Economy Standards, saying this was “not consistent with what Congress intended for the fuel economy program.”
The deputy secretary did say CAFE regulations will still be enforced under Trump, but they will be scaled back to be “realistic” for gas-powered and diesel-powered cars.
Read more from the Examiner’s David Zimmermann here.
GOVERNMENT SHUTDOWN: Federal agencies are releasing their updated contingency plans ahead of a potential government shutdown.
Lawmakers have until midnight tonight to avert a government shutdown. Democrats want to include extensions of Obamacare subsidies, which are set to expire at the end of the year, in a government funding bill. Republicans have rejected this request.
Trump warned Democrats today that if there is a government shutdown, the administration will consider eliminating programs and staff at agencies.
“We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them, like cutting vast numbers of people out, cutting things that they like, cutting programs that they like,” Trump told reporters from the White House Oval Office.
Updated plans: In preparation for a shutdown, federal agencies like the Environmental Protection Agency have updated their contingency plans. The EPA’s plan states that the total number of employees working is 15,166, but in the event of a shutdown, approximately 1,734 will remain on the job.
The Department of the Interior released one updated contingency plan. The department breaks down plans by bureaus and offices. For instance, DOI’s Bureau of Reclamation stated that it has 4,111 employees working. However, if a government shutdown occurs, 241 employees will be furloughed.
EXXON CUTS THOUSANDS OF JOBS AMID RESTRUCTURING: Oil and gas giant Exxon Mobil is planning to slash around 2,000 jobs worldwide as part of the company’s plans to restructure operations and consolidate some offices.
The details: A memo sent to employees today, obtained by Bloomberg, revealed that Exxon will be implementing workforce reductions of around 3-4% globally. Some of its subsidiaries are expected to see larger layoffs. Canadian-based Imperial Oil, for example, is set to lay off 20% of its staff. Much of the layoffs are expected to be seen across the EU and Norway by the end of 2027.
The job cuts are a part of a broader internal restructuring plan at Exxon that first began in 2019, in order to consolidate the company’s global footprint. Exxon CEO Darren Woods reportedly told employees in the memo that merging some smaller offices into larger regional hubs will boost the company’s competitiveness.
Among the changes, Exxon also plans to build a new office in Antwerp, Belgium, where it will be consolidating most of its Brussels-based employees. It will also be the new site of Exxon’s European Technology Center. The company also plans to bring most of its office and home-based employees closer to manufacturing sites – including in Germany and Italy – closing the smaller offices.
GAS BILLS EXPECTED TO RISE DURING WINTER SEASON, TRADE GROUP FORECASTS: The American Gas Association released its 2025/2026 winter outlook this morning, predicting that consumers will see their natural gas bill fall by around 8% compared to three years ago. Year-over-year, however, prices are going up.
The details: The trade group estimates that compared to last winter, natural gas bills will increase by 4.6%. Similarly, electricity, fuel oil, and propane bills will also jump by 6.4%, 1.1% and 2.3% respectively compared to last year. All three are also forecast to be higher when compared with three years ago. Though, like natural gas, fuel oil prices are projected to fall by 7.7% in that same time frame.
The higher bills won’t come as a huge surprise, given that analysts are expecting a colder-than-average winter season, leading to greater use of space heaters, propane tanks, and gas furnaces.
“A colder than average winter means customers may consume more natural gas this year to heat their homes, but prices remain 10% lower than they were a few years ago,” AGA Vice President of Energy Markets, Analysis and Standards Richard Meyer said in a statement. “Natural gas utilities are part of the communities they serve and work hard every day to put customers first, ensuring they have the energy they need when they need it.”
Impact of foreign demand: When pressed as to whether increased demand of natural gas from abroad – such as longer-term deals with Europe – could cause prices to spike, AGA remained confident there won’t be any major market disruption.
Instead, Meyer told members of the press that the most demanding constraint the industry may face is a lack of infrastructure, whether it be pipeline capacity or storage.
“Building out that infrastructure, that midstream and downstream infrastructure, is going to be really critical to ensure that we can allow those growing supplies, really record supplies right now, to continue to meet that growing demand at an affordable and stable price,” he said.
EU TO SET EMISSION TARGET AHEAD OF COP30: European Commission President Ursula von der Leyen announced today that the European Union will release its emission targets for 2035 and 2040 ahead of COP30 in November.
“How we reach these targets will be different. The world has changed. Global competition is fierce and not always fair. We need more flexibility, more pragmatism, but by staying the course, we provide stability for workers, clarity for businesses, and certainty for investors,” von der Leyen said at an EU event according to Reuters.
The EU missed its deadline this month to submit its updated climate targets to the United Nations. Countries must send updated climate targets every five years as part of the Paris Agreement. The EU member states were unable to agree on emission reductions.
In other EU news: The EU plans to introduce measures by the end of the year to close loopholes in its Carbon Border Adjustment Mechanism.
Bloomberg reports that, according to people familiar with the matter, the EU’s executive arm will prepare a three-fold plan to modify its Carbon Border Adjustment Mechanism. The policy imposes a fee on imported goods based on the greenhouse gas emissions produced during their production.
The outlet stated that the policy would extend to certain items, including washing machines, while also addressing attempts by producers to evade the rules. This move aims to support the bloc’s export industries.
ICYMI – TRUMP ADMIN ILLEGALLY WITHHELD FEMA GRANTS, GOVERNMENT WATCHDOG SAYS: Yesterday, the Government Accountability Office determined that the Trump administration illegally withheld several grants managed by the Federal Emergency Management Agency that supplies funds for homeless individuals as well as migrants.
The details: Amid the government watchdog’s ongoing review into FEMA’s ability to respond to disasters like severe hurricanes and wildfires, GAO ruled that the agency violated the Impoundment Control Act (ICA) earlier this year.
GAO specifically looked at grants related to the Emergency Food and Shelter Program that provides assistance to homeless individuals, the Shelter and Services Program that provides funding for migrants awaiting immigration proceedings, and the Next Generation Warning System that enhances alert and warning capabilities in times of emergency. GAO ruled that the Trump administration de-obligated and delayed the release of the funds without any justification or indication that the programs would be implemented.
“…FEMA impermissibly withheld or delayed the obligation and expenditure of funds that Congress appropriated for the EFSP, SSP, and NGWS grants without regard for the procedures and constraints set forth in the ICA,” the watchdog wrote in its report.
It ruled that if the Trump administration wishes to make changes to FEMA budget authorities previously provided by Congress, it must formally propose the funds to be rescinded or propose legislation accomplishing the same task.
The response: The Department of Homeland Security dismissed the watchdog report yesterday, with spokesperson Tricia McLaughlin telling The Hill that the ruling is “simply incorrect.” McLaughlin insisted that the GAO ruling was intended to make FEMA look bad, and said that the agency plans to award the funds.
“The Sheltering and Services Program, now restructured into the Detention Support Grant Program, and the Emergency Food and Shelter Program have had notices published and FEMA has received applications,” she told the outlet. “FEMA is diligently reviewing these applications and is on track to award these funds before they expire.”
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