WHAT’S HAPPENING TODAY: Good afternoon and happy Wednesday, readers! We would like to wish President Joe Biden a happy 82nd birthday!
In today’s edition of Daily on Energy, Callie and Maydeen take a look at news coming out of Congress regarding the Inflation Reduction Act and permitting reform. Also, we cover California Rep. Jared Huffman’s bid for the ranking member post on the Natural Resources Committee.
Lastly, the newsletter dives into big tech companies’ plans to invest heavily in solar technology and battery storage. Plus read more to find out what OPEC Secretary General Haitham Al Ghais called a “gift from god.”
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.
SENATOR-ELECT JOHN CURTIS ON IRA REPEALS: Senator-elect John Curtis, who has been a leading Republican climate hawk in the House of Representatives, said Congress “owes” it to the American people to fine-tune provisions of the Inflation Reduction Act, rather than doing away with the entire Democratic-passed legislation.
The details: Curtis made the remarks during a breakfast hosted by C3 Solutions at the Capitol Hill Club Wednesday, which also featured a discussion with former Deputy Secretary of Energy Mark Menezes.
Curtis began by admitting there is a “lot of fear” over a potential overhaul of the IRA. However, he insisted that his Democratic colleagues, environmentalist activists, and others “shouldn’t be afraid.”
“We will use a surgical approach to this,” the Utah Republican said. “I think even our Democratic colleagues should be comfortable with the surgical approach. They spent $1.57 trillion in a very short period of time. Could they have gotten some things wrong? Of course, and so we ought to be receptive to refinement.”
While he did not specify any provisions he would be interested in taking a second look at, or leaving be, Curtis indicated that the intent behind possible repeals should be assessing whether the funding is providing the intended outcome, such as reducing carbon. The incoming senator went on to say that these discussions must also account for their effects on the market, given the amount of capital invested thus far.
Key quote: “Nothing’s wrong with fine-tuning, right?” Curtis said. “We owe it to the American people to fine-tune, to look at the results of what’s happening and for certain areas that could be improved. Let’s have that conversation.”
HUFFMAN SEEKS TOP NATURAL RESOURCES RANKING SPOT: California Rep. Jared Huffman announced he will challenge Arizona Rep. Raúl Grijalva to serve as the next ranking Democrat on the Natural Resources Committee.
Grijalva, who is 76 years old, has served in Congress since 2003. He has also held the chair or ranking member post in the Natural Resource Committee since 2015. But earlier this year he announced he is battling cancer and does not plan to run for reelection in 2026.
In a letter, obtained by Punchbowl, Huffman told the committee, “Now, with the shockwave of Trump’s ‘First 100 Days’ agenda about to slam into our committees, effective committee work led by our Ranking Members will be critical to limiting the damage from Trump’s Project 2025 agenda, advancing our affirmative agenda, bolstering members in tough districts, and drawing contrasts that enable Democrats to reclaim the House Majority in 2026 or sooner and make Hakeem Jeffries Speaker of the House.”
Huffman, 60 years old, has served Congress and on the committee since 2013. He added that his first action as ranking member will be to name Grijalva as “Ranking Member Emeritus.” Still, Grijalva has said he plans to remain in his post until the end of his tenure.
WESTERMAN SAYS GOP WILL PUSH PERMITTING BILL NEXT YEAR, IF IT FAILS TO PASS THIS YEAR: House Natural Resources Committee chairman Bruce Westerman said if Republicans cannot strike a deal on permitting reform with Democrats by the end of the year, the GOP will push its own bill next year through reconciliation, E&E News reports.
Some lawmakers are hoping that the lame duck session will offer a chance to move the Energy Permitting Reform Act of 2024 authored by Sens. Joe Manchin and John Barrasso.
But Westerman said that the reconciliation process next year would be a viable alternative.
“If you look back at the IRA, the Democrats went way beyond what anybody ever thought you could do in reconciliation,” Westerman told E&E News. “They had 12 committees of jurisdiction involved. So we’re studying what they did to get things kosher with the parliamentarian.”
COP29…OPEC+ TOUTS OIL AS A HEAVENLY ‘GIFT’: Breaking from the general attitude at the UN’s climate change conference in Baku, Azerbaijan, to accelerate the phase out of fossil fuels, OPEC Secretary General Haitham Al Ghais has declared oil and natural gas to be gifts from God.
Key quote: “They are indeed a gift of God,” Al Ghais said Wednesday, according to Reuters. “They impact how we produce and package and transport food and how we undertake medical research, manufacture and distribute medical supplies. I could go on forever.”
The details: His comments come just one week after Azerbaijan President Ilham Aliyev made similar remarks backing the oil and gas industry – despite concerns from nations seeking to lower greenhouse gas emissions and reduce global warming. While the Paris Agreement affirmed an international agreement to keep warming below 1.5 C above pre-industrial levels, Al Ghais insisted this can be done without turning on oil and gas companies.
“The focus of the Paris Agreement is reducing emissions, not choosing energy sources,” Al Ghais said. Rather than reducing oil and gas production, OPEC and other industry players have reportedly pointed to technologies such as carbon capture and storage that could allow for continued use of fossil fuels.
Some background: The oil and gas industry is estimated to be responsible for around 15% of energy-related emissions worldwide – equal to around 5.1 billion tons of greenhouse gas emissions, according to estimates from the International Energy Agency. The U.S. Environmental Protection Agency has also determined that the industry is the largest source of methane emissions within the country – which have far greater warming potential compared to other emissions like carbon. While carbon capture technologies have the ability to capture more than 90% of carbon emissions, there are currently only 30 commercial-scale projects operating around the world, per the Center for Climate and Energy Solutions.
BIG TECH LEADING EMBRACE OF SOLAR: Major tech companies like Meta, Google, and Amazon are investing heavily in solar power and storage, with many crediting incentives from the Democrats’ IRA for their renewable energy expansion.
The details: On Wednesday, the Solar Energy Industries Association released its Solar Means Business Report detailing the top companies and industries that are investing in solar technology and battery storage at record levels. Big Tech remains at the forefront of this embrace of renewables, with Meta securing nearly 5.2 gigawatts of solar energy capacity. Amazon, Google and Apple closely follow with 4.6, 2.5, and 1.1 gigawatts of capacity. Looking at battery storage operations, technology companies again remain at the top, with Google reporting 936 megawatt-hours of installed capacity.
“Some of the largest industrial and data operations in the world continue turning to solar and storage as a reliable, low-cost way to power their operations,” SEIA president and CEO Abigail Ross Hopper said in a statement. “These industry giants are investing in solar through a diverse range of applications, including onsite and off-site installations, on carports, paired with storage, or even as an anchor tenant for a community solar project.”
Behind the green push: According to the new report, most of the companies surveyed pointed to incentives from the IRA as a major catalyst behind renewable expansions. Specifically, many cited extensions of the Investment Tax Credit for renewable and solar energy projects. At the same time, executives have pointed to the need for increased reliability and stability of the national grid as these tech companies continue to explore advancements with artificial intelligence and data centers.
“Adding new solar energy to the grid is a critical aspect of our approach to ensuring our data centers are supported by clean and renewable energy,” Carolyn Campbell, Head of Clean and Renewable Energy, East at Meta, said in a statement.
THE UNEXPECTED PRICE OF AI: Data centers used for artificial intelligence may take more out of the public’s wallet than expected.
The details: New research conducted by scholars with the Jack Kemp Foundation suggest that the average American household may see their electricity bills jump 70% due to the growing energy demand from AI data centers. As a result, families could be faced with bills $1,200 greater each year.
The new report indicates that data centers will continue to drain the national grid, potentially using up nearly 50% of total electricity generated on the grid in some states. For example, Nevada, Utah, Arizona, Washington, Illinois, New Jersey and Texas are projected to see 20% of their electricity go to data centers, while that may grow to 31% in North Dakota. In Virginia – the data center hub of the country – consumers could see nearly half of their electricity on the grid ceded to these facilities.
Not only does increased demand bring risks of higher bills, the researchers warn, it could also lead to widespread brownouts and blackouts. To avoid this outcome, the report recommends lawmakers move forward on transmission and generation permitting reform, shift the burden of cost on data centers and large-load customers, and limit data center subsidies.
Key quote: “As data center expansion accelerates, consumers and small businesses are likely to bear the brunt of the consequences through higher electricity costs and brownouts and blackouts across the country,” Ike Brannon, co-author of the report and senior fellow at the Jack Kemp Foundation, said in a statement. “The average American household could pay over a thousand dollars more each year for electricity by the end of the decade if we don’t take urgent steps to resolve these energy shortages.”
HEALTH ADVOCATES WORRY TRUMP COULD UNDO PFAS REGULATIONS: Public health advocates are concerned that efforts to limit “forever chemicals,” also known as per- and polyfluoroalkyl substances or PFAS, will be scrapped by the incoming Trump administration, the New York Times reports.
The Biden administration has sought to limit the exposure of PFAS chemicals as they have been linked to cancer and other harms. The administration earlier this year finalized a rule to get rid of six types of PFAS in drinking water. But public health advocates fear that these regulations could be overturned in the next administration.
“Attacking basic fundamental protections, like the safety of people’s tap water, would be unprecedented,” Natural Resources Defense Council director of health Erik Olson told the New York Times.
“As the public becomes aware of that,” Olson added, “I think people are going to be very upset, saying: ‘Look, I didn’t vote for toxic chemicals in my water.’”
Water utility groups argued that removing PFAS from drinking water could cost billions of dollars a year, leading to higher water bills. The Trump administration has vowed to lower the cost of living.
CANADA IMPORTING U.S. ENERGY: Canada has reportedly been forced to draw on electricity from the U.S. as the nation has seen massive droughts, decreasing its hydropower generation.
The details: In years past, Canada has often exported excess energy generated through hydropower to the U.S. It is considered to be the third-largest producer of hydroelectricity in the world, with around 62% of its total domestic electricity generation coming from hydropower. However, droughts are forcing the nation to seek help from its neighbor, according to the Financial Times.
U.S. Energy Information Administration data reviewed by the outlet show U.S. electricity exports to Canada spiked in 2023 from $454.5 million to $1.2 billion. At the same time, Canada saw earnings from electricity exports to the U.S. drop by nearly 30%.
Remember: Hydroelectricity generation is widely considered to be the most climate-dependent energy source as drought conditions and heavy rain can have major effects on production.
“These annual variations in exports are not a new phenomenon,” National Resources Canada told the Financial Times. “However, modeling of climate impacts also suggests that the annual level of precipitation could increase in Canada’s hydroelectricity-producing jurisdictions.”
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