WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, readers! We hope you were able to rest up over the weekend, as we’ve got a busy week ahead. Debate over House Republicans’ “Big, Beautiful Bill” continues, with Inflation Reduction Act green credits on the chopping block, as some conservatives call for deeper cuts.
Plus, the Environmental Protection Agency was in court today defending its efforts to claw back $20 billion in grants awarded under the Biden administration. Keep reading to find out how today’s hearing in the case went and which arguments the judges seem to be leaning toward.
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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.
EPA LIFTS FLINT WATER CRISIS EMERGENCY ORDER: The Environmental Protection Agency has lifted its near-decade-old emergency order on Flint, Michigan, over its lead-contaminated water system, saying the city is in compliance with federal water standards.
The details: EPA Administrator Lee Zeldin announced today that the agency would be terminating its 2016 emergency order, as the city has completed all requirements. While the order has been lifted, Zeldin emphasized that all levels of government must continue to work closely to maintain clean water levels in Flint.
Recent water sampling showed Flint’s water system was in compliance with lead standards, more than 10 years after the water first became contaminated, the EPA said.
Some background: The water crisis can be traced back to an April 2014 decision by a state emergency manager appointed by then-Michigan Gov. Rick Snyder. At the time, the manager signed off on a vote by the Flint City Council to change the city’s source of water in order to cut costs. Instead of tapping water from the Detroit Water and Sewerage Department, the city moved to take water from the Flint River.
The water from the Flint River was found to be extremely polluted and acidic, corroding the lead pipes that transported it to the city and leaking lead into drinking water. The contaminated water continued to flow into Flint until city officials cut off the source in October 2015. State and federal governments declared a state of emergency in 2016, and residents were left unable to drink or use the water coming from their taps for months.
Read more from Callie here.
JUDGES SKEPTICAL OF EPA IN ‘GOLD BARS’ CASE: In a hearing at the D.C. Court of Appeals, a three-judge panel pushed back against the Environmental Protection Agency’s efforts to terminate promised grants to eight climate groups issued by the Biden administration.
The EPA and three climate groups met in court today over the future of $20 billion in grants issued by the Greenhouse Gas Reduction Fund program, a program established by the IRA meant to build clean energy projects across the U.S.
The EPA has claimed that the grants were mismanaged and lacked oversight because the money was routed through Citibank during the Biden administration.
EPA’s lawyer Yaakov Roth told the court that the EPA does not have pre-approval of the funds and that the funds are not only passed to the grantees but that the climate groups pass the money onto subgrantees, making it challenging to follow the flow of money.
“The further removed it is, the harder it is for EPA to be able to understand what’s going on and trace the money, and so that is part of the concern as well from an oversight,” Roth said.
Read a full account of the hearing from Maydeen here.
ENERGY INDUSTRY NEEDS FEDERAL SUPPORT IN THE SHORT TERM: This morning, The Energy Future Forum kicked off at the U.S. Chamber of Commerce, featuring discussions with leaders in the industry, including Federal Energy Regulatory Commission Chairman Mark Christie, Devon Energy president and CEO Clay Gaspar, and longtime wealth adviser Terrence Keeley.
Some background: The Trump administration has emphasized in recent weeks its goals to bring in tens of billions of dollars worth of private investments in new energy projects and technologies over the next four years. Energy Secretary Chris Wright told Congress earlier this month that private investment and private capital are the “biggest thing” the administration needs to bolster nuclear energy development.
The warning: During today’s forum, Keeley warned there is still quite a bit of trepidation among private investors, and the administration isn’t helping. He pointed to increased interest in small modular reactors – advanced nuclear power that in theory can get online faster and are cheaper to build. However, there are only three operating worldwide.
“We’re a long way away from the commercialization of SMRs for bringing in private capital, because the promise is just not there,” he said.
Keeley also pointed out that there is increased concern among investors (both domestic and foreign) over other energy projects, such as offshore wind, a target of President Donald Trump.
“Of course what [Interior Secretary] Doug Burgum has just done to Empire Wind One…basically closing down the project that was according to my Equinor contacts, less than one year away from generating electricity seems a bit punitive,” Keeley said, referring to the Interior Department’s April decision to pause construction of the fully permitted offshore wind farm off the coast of New York.
Equinor, the Norwegian energy company building the farm, has since threatened to kill the project entirely if the administration does not change its decision. As a result, Keeley warned, future foreign investments are under threat.
“You can say goodbye to foreign direct investments in the United States for any type of project, renewable or unrenewable, when that type of unreliability has come into place,” he said.
HOUSE REPUBLICANS MAY FURTHER CUT IRA GREEN CREDITS: Some House Republicans are pressing leadership to adopt more aggressive language for terminating the IRA clean energy tax credits that would be limited or cut in the budget reconciliation bill.
The legislative text currently details several phase-out timelines for the credits, having them end in the early 2030s – several years after Trump will have left office.
Although many in the energy industry, and some Republicans oppose those phase-outs (particularly for nuclear power and clean hydrogen), Texas Republican Rep. Chip Roy wants them broadened.
“The [House Freedom Caucus] agrees with @realDonaldTrump that we MUST terminate the Green New Scam,” Roy wrote on X this afternoon. “But the bill currently repeals about half of it. The @HouseGOP must do better – weekend negotiations made progress, but more to do.”
Roy was one of the four Republicans that opposed the legislation in its current form last week and opted to vote “present” on Sunday in order to advance it to the Rules Committee this Wednesday.
SOLAR GROUP WARNS THAT GOP BILL JEOPARDIZES THE INDUSTRY: The Solar Energy Industries Association released an analysis warning that the Ways and Means Committee’s legislation aimed at cutting energy tax credits would upend the solar industry.
The analysis said the committee’s bill as written could result in 292,000 jobs lost in the U.S. It added that 287 factories would close, and about $220 billion in local investment would be lost.
The committee’s bill yesterday was advanced through the House Budget Committee. The legislation aims to cut energy tax credits established by the 2022 Inflation Reduction Act, which provided hundreds of billions of dollars for the clean energy industry. Specifically, the bill would terminate credits for residents who invest in renewable energy for their homes, such as solar panels, solar water heating property, fuel cell property, etc. It would also phase out the Advanced Manufacturing Production tax credits, which offer tax credits for facilities producing and investing in renewable energy, such as solar components.
“There is still time to improve this bill which, as written, represents a crisis for America’s ability to build the energy infrastructure we need to meet surging demand,” SEIA president and CEO Abigail Ross Hopper said in a statement.
“If this proposal becomes law, nearly 300 U.S. factories—mostly in red states—could close or never open, and we simply won’t have the energy we need to power American innovation in AI and data centers,” Hopper said.
NUCLEAR RENAISSANCE HITS GERMANY: Just days after officials emphasized Germany would not be backing down from its phase-out of nuclear energy, the German government has signaled openness to the carbon-free power source.
The details: French and German officials revealed today that Berlin would no longer oppose efforts by Paris to treat nuclear power on par with renewable sources of energy in EU legislation, according to the Financial Times. The decision leaves Austria as the only major European country still in opposition, though it will likely encourage the European Commission to allocate more funding for nuclear energy development.
The two European powerhouses have long disagreed over whether to promote nuclear power as a way to hit emissions reduction targets, as the European Union has done so with renewables like wind and solar. France currently uses nuclear power for roughly 70% of its energy, while Germany has phased it out completely.
While Germany’s Environment Minister Carsten Schneider said last week that the country would not be walking back on exit from nuclear power, newly elected conservative Chancellor Friedrich Merz appears more open. One German official told the Financial Times that today’s decision signals a “sea-change policy shift” on the issue.
“We are now actually finally open to talk to France about nuclear deterrence for Europe. Better late than never,” the official told the outlet.
A LOOK AHEAD:
May 19 In partnership with the U.S. Chamber of Commerce and the National Center for Energy Analytics, RealClear is holding The Energy Future Forum in Washington D.C.
May 19 – 22 American Clean Power is holding its 2025 CLEANPOWER conference in Phoenix, Arizona.
May 20 Advanced Energy United is holding a webinar titled “Unsticking the Grid: What’s Blocking Distributed Energy Resource Energization?”
May 20 Interior Secretary Doug Burgum is set to appear before the House appropriations committee for a hearing on the fiscal year 2026 budget.
May 20 The House Natural Resources subcommittee on energy and mineral resources to hold a legislative hearing to go over several new bills, including H.R. 513 which seeks to overturn the Biden administration’s ban on drilling development in over 600 million acres of federal waters.
May 21 Burgum and Energy Secretary Chris Wright are scheduled to appear before the Senate appropriations committee to review the fiscal year 2026 budget.
May 21 EPA Administrator Lee Zeldin is set to appear before the Senate Environment and Public Works committee to discuss the proposed fiscal year 2026 budget.
May 21 The House Committee on Rules is scheduled to consider Republicans’ “Big, Beautiful Bill” during a meeting scheduled for 1 a.m.
May 21 The House Energy and Commerce subcommittee on oversight and investigations is holding a hearing titled “Examining Ways to Enhance Our Domestic Critical Mineral Supply Chains.”
May 21 Heatmap is holding a virtual briefing on Congress’ efforts to pass permitting reform.
May 22 The California Demand Flexibility Summit is being held at the University of California-Davis.
May 26 is Memorial Day. Please note there will be no newsletter sent out on this day!
RUNDOWN
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