WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, readers!
It’s a beautiful day here in Washington, D.C., and a relatively slow news day – at least relative to the pace of the past few months.
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But there is a debate raging in energy and environment circles over Sen. Mike Lee’s plan to sell off federal lands for housing. We take a look at the latest in the controversy in today’s newsletter.
With the help of our editor, Joe Lawler, we also run down the energy- and climate-related “Byrd droppings” from the One Big Beautiful Bill Act – that is, the provisions that have been deemed to run afoul of the Byrd Rule, and thus are likely to be stripped out.
Please read and enjoy. Also, stay cool out there, and have a great weekend!
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.
QUOTE OF THE WEEK: “We’re in the fourth quarter, but we’re not at the final seconds yet,” Solar Energy Industries Association President and CEO Abigail Ross Hopper told reporters this week following a rally to press lawmakers to preserve solar tax credits.
The Senate Finance Committee earlier this week released legislative text for the GOP reconciliation bill, which would repeal solar tax credits, following in the footsteps of House lawmakers.
“We’re not giving up until that final vote is taken,” Hopper said. “We’re leaving no stone unturned, no member that we are not speaking to. Certainly [taking] nothing for granted.”
THE LATEST IN THE CONTROVERSY OVER LEE’S PUBLIC LAND SALES PROVISION: Sen. Mike Lee continues to receive pushback from fellow conservatives and from environmentalists for his provision to sell off some federal land in the OBBBA for housing construction.
Lee defended himself today on the platform formerly known as Twitter, citing a Wall Street Journal editorial insisting the measure would not harm the environment but would rather help spur development and revenue.
“Federal land should benefit Americans. Congress has a chance to make that happen,” Lee said in his tweet.
Lee, who chairs the Senate Energy and Natural Resources Committee, also quoted Abraham Lincoln: “The wild lands of the country should be distributed so that every man should have the means and opportunity of benefiting his condition.”
He commented, “Abraham Lincoln was right. We need the HOUSES Act.”
The measure would mandate the sale of 0.50% to 0.75% of Bureau of Land Management land and National Forest System land in 11 western states for housing development.
Meanwhile, some conservatives are ramping up opposition to the measure. Benji Backer, the founder and executive chairman of Nature is Nonpartisan group, tweeted, “75% of Americans oppose the mass sale of public lands for development.”
“The only way this would EVER pass Congress is by being buried in a massive bill like the BBB. It would fail (epicly) on its own,” he said, adding that the Senate needs to oppose the measure to prevent it from overshadowing President Donald Trump’s priorities.
Maydeen wrote a story that was posted this morning explaining the controversy. Go here to learn more about the critics’ arguments and Lee’s defense of the measure.
ENERGY PROVISIONS BYRD’D FROM GOP MEGABILL: The Senate parliamentarian last night said that several energy provisions in Republicans’ One Big Beautiful Bill Act violated the Byrd Rule.
The parliamentarian said that measures to repeal vehicle emission rules, defund Inflation Reduction Act programs, and create an opt-in fee permitting program do not fit in budget reconciliation. The parliamentarian said the measures violate the Senate’s Byrd Rule, which ensures measures must be primarily fiscal in their effects.
What measures were cut? Specifically, the parliamentarian ruled against 22 measures in the megabill that would cut spending for IRA programs.
The parliamentarian spared a measure, though, that would repeal funding from the Greenhouse Gas Reduction Fund program, which is currently subject to litigation.
But another notable provision that will not make the cut is one undoing the Environmental Protection Agency vehicle emissions rules implemented during the Biden administration. Of course, Republicans are also aiming to remove those rules via the Congressional Review Act and through administrative action.
Lastly, the parliamentarian ruled against a measure that would have created a program in which companies would be allowed to pay a fee to expedite environmental reviews during the permitting process.
Read more about the energy measures cut from the OBBBA here.
CHEAP GAS TO BRING OUT RECORD NUMBER OF JULY 4TH DRIVERS: A record number of drivers are expected to travel over Independence Day, thanks to the lowest seasonal gas prices in four years.
AAA said that 72.2 million people will travel at least 50 miles or more from home from Saturday, June 28 to Sunday, July 6, up 1.7 million from last year and 7 million from 2019.
AAA puts the average nationwide gas price at $3.22. The last time prices were lower for this time of year was 2021, when they were about 15 cents lower.
MIDDLE EAST UPDATE – MARKETS EASE ON LATEST FROM TRUMP: Oil slipped following Trump’s remarks yesterday that he sees hopes for diplomacy with Iran, and that he would decide on authorizing a strike within the next two weeks.
International benchmark Brent crude fell more than 3% today, but recovered slightly to near $77 as of the early afternoon.
Iran also indicated openness to discussing limits on uranium enrichment today, according to a report from Reuters, further adding to optimism among investors.
Major ramifications for China: One major side effect of the conflict is that China’s energy security is in doubt.
Since the West has stepped up sanctions on Iran over the past seven years, China has become the top importer of Iranian oil, and its shipments now account for 15% of China’s crude imports, according to the Financial Times.
China also would see greater disruptions to its supply of oil and gas if Iran blocks the Strait of Hormuz.
“If this situation continues to escalate, then they lose quite a bit, both in terms of their energy security and Iran as a strategic card that China holds,” Abba Eban Institute for Diplomacy and Foreign Relations expert Gedaliah Afterman told the FT.
FUEL PRODUCERS HAVE STANDING VERSUS CALIFORNIA AUTO RULES, SCOTUS SAYS: The Supreme Court in a 7-2 ruling this morning that fuel producers have a right to challenge the EPA’s approval of a waiver for California emissions rules that would eventually ban gas cars.
The conservatives, joined by Justice Elena Kagan, rejected an argument from California that the fuel producers wouldn’t be harmed by the rules because the market is trending toward EVs and away from gas consumption anyways.
Reminder: The California rules have been canceled by a Congressional Review Act resolution signed by Trump. The state, though, is suing to overturn the resolution, which is on shakier legal standing than most, thanks to a Government Accountability Office ruling that the waiver in question was not subject to a CRA.
U.S. CHINA MINERALS DEAL STILL UNCERTAIN: It has been over a week since the U.S. and China trade officials announced they have agreed to a deal, but U.S. companies remain wondering when they will receive Chinese minerals.
Bloomberg reports that people familiar with the process said that U.S. firms are still waiting on China’s approval for shipments of rare earths and magnets needed for various industries like auto manufacturing.
China has imposed export restrictions on rare earths and magnets in response to the U.S. sweeping tariffs. U.S. trade officials on June 11 announced they struck a deal with the Chinese on minerals and magnets.
However, Bloomberg interviewed several Western buyers, industry insiders and officials familiar with discussions who indicated frustration over the “vague policies.” The outlet added that there is confusion about what level of Chinese magnets it would take for the U.S. to abandon export curbs.
DOE APPROVES FOURTH LOAN FOR PALISADES RESTART: The Energy Department today approved its fourth loan for the Palisades Nuclear Plant, located in western Michigan.
The DOE’s Loan Programs Office approved a $1.52 billion loan to fund Holtec International’s efforts to restart the plant last September. Palisades will be the first commercial reactor to restart, subject to Nuclear Regulatory Commission approvals.
“Under President Trump’s leadership, the Department of Energy is taking a leading role in unleashing the American nuclear renaissance,” Energy Secretary Chris Wright said. “The Palisades Nuclear Plant will help to reinvigorate our nuclear industrial base and will reestablish the United States as the world’s nuclear energy leader.”
NORWAY EYES LIMITING BITCOIN MINING TO CONSERVE ENERGY: Bad news for Bitcoin from the North: Norway’s government has announced intentions to prevent new cryptocurrency mining, on the grounds that the electricity needed for mining is best used for other purposes.
“Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community,” Minister for Digitalization and Public Administration Karianne Tung said in a statement, according to Reuters.
A ban could come this fall.
It’s worth noting, perhaps, that another significant rival source of demand for power in Norway is electric vehicle charging, as the Nordic country is the furthest along in EV take-up, with nearly 90% of new cars sold being electric.
RUNDOWN
The New York Times Hybrid Cars, Once Derided and Dismissed, Have Become Popular
USA Today Climate change threatens world food supply. How bad could it be in the U.S.?
AP News How to stay cool in the heat wave hitting parts of the US — even without air conditioning