THE RESPONSE: The political and legal fallout from the Environmental Protection Agency finalizing rules to limit power plant emissions this morning has been swift and, mostly, predictable.
In terms of the legal response, West Virginia Attorney General Patrick Morrisey immediately said that he would sue to overturn the rule. So did the National Mining Association. Both cited the Supreme Court decision striking down the Obama power plant rules in West Virginia v. EPA as reason to think the new rules are vulnerable. Of course, the rules were crafted in large part to survive such legal challenges.
On the congressional front, Environment and Public Works Ranking Member Shelley Moore Capito blasted the rules as “illegal” and said she would be introducing a resolution under the Congressional Review Act to overturn the regulations.
Energy and Natural Resources Committee Chairman Joe Manchin also issued a harsh criticism of the rules, saying that the administration was motivated by fear of climate activists and that the new regulations would undermine energy security. The centrist Democrat specifically faulted the EPA for disfavoring hydrogen in the final rule, saying that, if the goal were to reduce emissions, the administration would be doing everything it could to deploy clean hydrogen.
On the other hand, the EPA did get support from EPW Chairman Tom Carper for the rules. Carper said the new standards are “achievable” with “reasonable compliance deadlines,” and praised the updated standards for mercury and other toxics.
What to watch for: Centrist Democrats, led by House Energy-Water Appropriations subcommittee ranking member Rep. Marcy Kaptur, had previously warned the White House that the power plant rules could make energy unaffordable for rural and low-income communities. We’ll follow up in the coming days if we hear anything.
For more on the new rules, read Breanne’s story here.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment writers Breanne Deppisch (@breanne_dep) and Nancy Vu (@NancyVu99). Email bdeppisch@washingtonexaminer dot com or nancy.vu@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.
ADMINISTRATION UPDATES EFFICIENCY RULES FOR FEDERALLY BACKED HOUSING: The Department of Housing and Urban Development updated energy efficiency standards for homes built with its backing, saying that the new rules will save the equivalent of emissions from 46,000 cars a year.
The new rules will apply to construction financed through HUD and the USDA, including Federal Housing Administration-backed home loans.
The effort will bring HUD into compliance with a law requiring that it adopts the latest building energy efficiency codes. The agency said that the new codes will increase efficiency by 37% for new homes and lower mortgage costs for borrowers.
The agencies said that the new standards will affect 150,000 units a year, according to Bloomberg.
ENERGY DEPARTMENT LOOKS TO SPEED UP TRANSMISSION LINE PERMITTING: The Department of Energy finalized a rule today meant to speed up permitting of transmission lines, addressing a critical need as the Biden administration aims to bring clean energy online and distribute it throughout the country.
The rule would have DOE take over as the lead agency for reviews of certain interstate lines and aim to issue permits within two years, the New York Times reports.
“We need to build new transmission projects more quickly, as everybody knows,” Energy Secretary Jennifer Granholm said.
The effort is meant to address one major permitting problem as Congress remains at odds over broader permitting reforms.
ICYMI: SOLAR MANUFACTURERS SEEK TARIFFS ON IMPORTS FROM ASIA: A coalition of domestic solar manufacturers filed antidumping and countervailing duty petitions with the U.S. International Trade Commission yesterday for imports from Cambodia, Malaysia, Thailand, and Vietnam, arguing that the countries are serving as conduits for Chinese products that should be subject to tariffs.
The Department of Commerce had determined last year that the countries were skirting tariffs, but the administration imposed a moratorium on the tariffs to give companies a chance to shift supply chains.
The solar manufacturers group, American Alliance for Solar Manufacturing Trade Committee, includes First Solar, the largest domestic manufacturer, which is based in Perrysburg, Ohio.
Ohio Sen. Sherrod Brown said in a statement on the petitions yesterday that China is rerouting goods through intermediary countries to avoid tariffs and harm the U.S. industry, and that the administration “cannot let them get away with it.”
HERTZ HIT BY BAD BET ON ELECTRIC VEHICLES: Hertz this morning reported a loss in the first quarter, in large part due to big write-downs on the electric vehicles it intends to sell.
As background, Hertz’s new ownership made a big bet on EVs, specifically, Teslas, a bold plan that included a big ad campaign with Tom Brady.
But it hasn’t worked out well, and the company said this morning that it increased the number of EVs it plans to sell by 10,000 to 30,000 total for the year. It incurred a $195 million charge for depreciation on the vehicles.
A major problem for the company is that, between when it ordered 100,000 Teslas in 2021 and now, Tesla CEO Elon Musk massively lowered the prices of the vehicles, meaning that Hertz’s inventory has a significantly lower resale value.
RUNDOWN
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