WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! In today’s Daily on Energy, Callie and Maydeen are covering the clash between Republicans and Democrats on the House Natural Resources Committee over the GOP reconciliation package that would cut spending and promote fossil fuel projects.
In other news, the Energy Department is reportedly one step closer to overhauling the agency’s Loan Program Office. Meanwhile, we also take a look at the Environmental Protection Agency plans to end the Energy Star, a program that labels home appliances as energy efficient.
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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.
HOUSE NATURAL RESOURCES COMMITTEE RECONCILIATION MARKUP: The House Natural Resources Committee is marking up its part of the GOP reconciliation legislative package, which is meant to cut billions in federal spending.
The committee’s bill includes provisions that would require quarterly onshore oil and gas lease sales, incentivize energy development on the Coastal Plain of Alaska, require annual coal lease sales, and allow fossil fuel companies to pay a fee to streamline the permitting process.
Without the majority, Democrats have little chance of blocking the entire package and have moved to draw out debate as long as they can. Democrats on the committee have moved to introduce 121 amendments to the proposal, which they argue is an attack on the environment and favors fossil fuel companies.
“It would take away rights to review what is happening on sensitive public lands, and it is based on a completely false premise that will undermine the protection of our economy, the American people, our communities and the environment,” said Democratic New Mexico Rep. Melanie Stansbury. “And that is why we are prepared to sit here all day and fight this bill, because it is complete BS.”
Bueller? Bueller? After opening statements, House Republicans were relatively silent throughout the first few hours of the hearing – much to the ire of their Democratic colleagues. Ranking member Jared Huffman of California repeatedly called out the Republican members for choosing not to debate over the amendments as he introduced them. At one point, Huffman called a vote to adjourn the mark-up meeting – which failed – and explained after that he called it in order to bring the Republicans back into the room for debate. After the vote, several Republicans once again left the hearing room.
Other Democrats, including Colorado Rep. Joe Neguse and Rhode Island Rep. Seth Magaziner, also took time to lambast Republicans for failing to engage in any debate. “I’m beginning to think the Rs across the table from us are not Republicans but robots,” Magaziner said, and later quoted “Ferris Bueller’s Day Off,” saying, “Bueller?” The Democrat also accused Republican leaders of ordering the committee members to not engage in debate.
“What does your own leadership think of you if they don’t trust you to speak?” Magaziner asked.
The package’s markup was expected to last well into the evening and could very well trickle into tomorrow.
DEPARTMENT OF ENERGY STEP CLOSER TO SHUTTERING LOANS OFFICE: The Department of Energy is reportedly seeking the market value of clean energy loans managed by the agency’s Loans Program Office, getting the administration one step closer to completely overhauling the office.
The details: An email exchange reviewed by E&E News this week revealed that DOE is working with Bank of America employees in order to evaluate how much clean energy loans in the LPO’s portfolio are worth in the market. In the email exchange, between DOE appointee Travis Boeker and Bank of America’s Loren Harman, Boeker revealed that the request to evaluate the loans’ value came from the White House.
This move signals that the administration may be interested in closing the office as part of its broader efforts to cut back on federal spending. If DOE were to sell the loans to private institutions and banks, one staffer told E&E News, it wouldn’t take much else to close its doors.
DOE’s LPO has issued energy-related loans for decades, with the agency first authorized to issue funds for clean energy projects in 2005. Under the Biden administration, the office saw its loan guarantee authority grow rapidly to nearly $412 billion, with the intent to increase federal support for green projects involving solar, electric vehicles, and more.
Some background: The office has seemingly been targeted in the Department of Government Efficiency’s efforts to shrink federal spending, with nearly 60% of LPO staff taking the Trump administration’s “fork in the road” buyout. DOE employees have told Daily on Energy that those remaining are expecting the administration to downsize the office even further, potentially shrinking divisions once made up of 70 people to just five or seven staffers.
Industry experts have warned against slashing the agency, calling it critical for the Trump administration’s energy dominance agenda, as the office has helped finance energy projects related to new nuclear generation, grid modernization, and critical minerals.
NEW YORK ASKS JUDGE TO STOP WHITE HOUSE FROM WITHHOLDING FUNDING AMID CONGESTION PRICING DRAMA: New York’s feud with the Trump administration over the Manhattan congestion pricing program escalated this week as state officials are looking for the courts to stop the White House from withholding federal funds.
Some background: New York City implemented a congestion pricing program in order to reduce traffic congestion during peak hours in early January. This program imposes a tax starting at $9 for motorists, with the funds collected expected to be used to repair the city’s subway system. While polling has suggested that many New Yorkers are in support of the toll, it has been heavily criticized by the president.
President Donald Trump has repeatedly ordered New York Gov. Kathy Hochul to lift the program, with his Transportation Secretary Sean Duffy threatening penalties if she fails to do so later this month. Duffy has said the administration would consider imposing several penalties, including halting of non-essential advance construction authorizations for projects in Manhattan, a halt in National Environmental Policy Act approvals for projects in Manhattan, and a halt to approvals for “Statewide Transportation Improvement Program amendments concerning New York Metropolitan Transportation Council [Transportation Improvement Program] modifications.”
Standing ground: Despite the threats, New York remains adamant about keeping the congestion toll in place. The Metropolitan Transportation Authority is now attempting to block the administration in court, saying it is improperly leveraging federal funds.
“The administration has now resorted to what seems to be its modus operandi: attempting to improperly leverage federal funding in order to coerce compliance with its wishes, rather than defend the legality of its propositions in court,” the filing, obtained by Bloomberg, read.
EXECUTIVES WARN ATTACKING RENEWABLES WILL HURT U.S. POSITION IN AI RACE: Executives in the data center industry are calling on the president to slow his attacks on renewable energy sources like wind and solar, warning that they could hurt the United States’ position in the artificial intelligence race with China.
The details: While Trump has sought to slash federal support for renewable energy development, those in the tech industry say it is critical to support rapidly growing demand brought on by AI and large load data centers. Simon Ninan, senior vice president for data center infrastructure provider Hitachi Vantara, told the Financial Times that Trump might be making it “impossible to satisfy the data growth that’s happening” by withdrawing support for solar and wind.
“Strategically, the US could risk undermining its current pole position in the global AI race ,” he told the outlet, adding, “China, on the other hand, has taken a proactive approach towards grid modernisation and efficient power distribution.”
Without energy sources like wind and solar in a time where electricity demand is only expected to grow, Ninan warned, the industry may be faced with energy shortages that delay or stop investments in data center growth.
Worth noting: New research from the Center for Strategic and International Studies has found that data centers could add upward of 84 gigawatts of energy demand by 2030. By comparison, data centers only consumed 4 gigawatts of energy last year. There has been growing interest in using advanced nuclear energy – often in the form of small modular reactors – to support developing data centers. However, much of this technology is not expected to be operational until 2030 at the earliest. As a result, many data centers are looking to new renewable projects to avoid draining the grid.
“Renewable energy can often be less expensive than alternatives because there’s no fuel to purchase. Some of the purchasing agreements we have signed historically were ‘no brainers’ because they reduced our power costs,” Kevin Miller, vice-president of Global Data Centers at Amazon Web Services, told the Financial Times.
TRUMP LOOKS TO END ENERGY EFFICIENCY LABELING PROGRAM: The Trump administration will seek to end an energy efficiency labeling program for home appliances, the Washington Post reports.
At a meeting yesterday of the EPA’s Office of Atmospheric Protection, Trump administration officials said the office would end the Energy Star program, people briefed on the matter told the Washington Post. They said that relevant staff would be reassigned.
The Energy Star program, which started in 1992, labels home appliances with blue stickers that indicate the product uses less energy. The Trump administration has looked to undo energy efficiency rules that were promulgated during the Biden administration. Republicans have argued that they drive up costs for consumers.
MORE THAN 1,500 SOLAR COMPANIES ASK CONGRESS TO PROTECT CLEAN TAX CREDITS: More than 1,500 solar energy industry companies are calling on both the Senate and House to protect clean energy tax credits supported by the Democratic-passed Inflation Reduction Act, saying they are “essential” to the country’s “winning energy strategy.”
The details: In a letter sent to both Republican and Democratic leadership of the Senate Finance Committee Chairman and House Ways and Means Committee, the 1,542 companies asked Congress to keep the 25D, 48E, 45Y, and 45X energy tax credits.
“We represent companies and workers in all 50 states and U.S. territories, rooted in small businesses and local communities,” the companies wrote in the letter, obtained by Daily on Energy. “Together, we form a critical part of the American energy economy, and the jobs we’ve created are at risk without continued support.”
They argued that, with electricity demand and costs rising, these tax credits will continue to support rapid energy deployment in the U.S. while also supporting roughly 300,000 American jobs. The letter specifically zeroed in on the 25D residential credit, which is meant to accelerate deployment of residential rooftop solar and storage technologies. The companies claimed this credit has allowed families to lower and control their electricity bills, reduce grid infrastructure costs for consumers, relieve pressure from the grid and support American manufacturing jobs.
Signees included Accord Power, All American Solar, California Solar Electric, Clean Energy USA, Helios Texas, Southern Alliance for Clean Energy Sunergy, and hundreds more.
MEASURE TO CANCEL TIRE MANUFACTURING EMISSIONS RULE SENT TO TRUMP: Senators today voted to reverse a Biden administration rule that reduces emissions from the tire manufacturing process.
In a 55-45 vote, senators passed a resolution that would undo the Environmental Protection Agency’s standards relating to hazardous air pollutants from rubber tire facilities.
Democrats Tim Kaine and Mark Warner of Virginia voted with Republicans on the measure.
The bill passed the House in March. It was introduced by Rep. Morgan Griffith of Virginia and advanced through the Congressional Review Act, which provides an expedited process for Congress to cancel rules, bypassing the filibuster in the Senate.
The regulation was finalized last November to protect the public from toxic emissions that come from tire manufacturing. Republicans argued that the rule increases compliance costs for the industry and consumers.
The U.S. Tire Manufacturers Association applauded the resolution, stating that it will reduce the financial burden on tire facilities.
The existing rule “creates an adverse environmental impact, while imposing significant financial burdens on tire manufacturing facilities and providing negligible, if any, benefits. The industry appreciates the Congressional leadership and bipartisan efforts in getting this resolution passed,” said Anne Forristall Luke, President and CEO of the association.
The bill will now be sent to White House for Trump to sign into law.
ICYMI – SEVENTEEN STATES SUE TRUMP ADMINISTRATION FOR BLOCKING WIND PROJECT: A coalition of 17 states, led by New York, has filed a lawsuit to stop the Trump administration from blocking wind development nationwide.
“This administration is devastating one of our nation’s fastest-growing sources of clean, reliable, and affordable energy,” said New York Attorney General Letitia James.
The states cite Trump’s executive order in January that halted lease sales and permit approvals for both onshore and offshore wind. The states argue that blocking wind energy development is harming their ability to meet energy and climate goals. They are asking a federal court in Boston to block the administration’s decision to freeze all leases and permitting of new wind projects.
The lawsuit follows the administration’s pause in the current construction of the Empire Wind Project, near Long Island, to review a permit previously approved by the Biden administration.
RUNDOWN
New York Times Why 35 House Democrats Joined Republicans Against a Major Climate Policy
Inside Climate News World’s Researchers Say They Will Resist Attacks on Science and Support Beleaguered U.S. Colleagues
Los Angeles Times Indigenous tribes pitted against each other over a state bill to redefine land protection in California