WHAT’S HAPPENING TODAY: Good afternoon readers, we’re halfway through the week!
In today’s edition of Daily on Energy, Callie and Maydeen kick things off with the latest on arguments heard in the Supreme Court in a case challenging the EPA’s wastewater permit program for San Francisco, as well as the breaking news that the court denied a request from GOP states and industry groups to stay the Biden EPA’s power plant rule.
We then turn our attention to green energy as Amazon has announced more investments in nuclear energy, a new report suggests the phase out of fossil fuels will take longer than expected, and the Biden administration earmarked funding for nuclear, solar and battery projects. Be sure to keep reading as we also touch on Morocco looking to double its green energy in the Sahara and the Biden administration’s efforts to increase U.S. manufacturing for electric vehicle parts.
Today’s newsletter wraps up by looking at the EPA’s 2023 greenhouse gas data, while the election countdown covers a natural gas protection on the ballot in Washington state.
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.
SCOTUS DENIES STAY ON POWER PLANT RULE: The Supreme Court denied Republican states and industry groups’ request to stay the EPA’s power plant rule that is meant to cut emissions from power plants by 90% by 2032. GOP states, led by West Virginia, and business groups like the U.S. Chamber of Commerce alleged that the agency exceeded its statutory authority.
The 7-1 ruling this afternoon, with Justice Clarence Thomas dissenting and Justice Samuel Alito not taking part, means the rule can go into effect for now. But the legal challenge will continue in the U.S. Court of Appeals for the District of Columbia Circuit.
Read more from the Examiner’s Kaelan Deese here.
MORE FROM THE COURTS: Today, the Supreme Court heard oral arguments in the City and County of San Francisco v EPA, challenging the agency’s authority to issue broad limitations on wastewater discharge under the Clean Water Act.
The agency issues the National Pollutant Discharge Elimination System permits to regulate entities who discharge pollutants into the water. But Tara Steeley, deputy city attorney for San Francisco argued that in 2019 a permit issued to the city by the EPA provided too broad of standards, making it harder to comply and exposing it to risk of penalties.
However, the justices seem wary of San Francisco’s argument that the EPA must provide specific limitations to water pollution in their permit. Democrat-appointed Justice Elena Kagan suggested that Steeley was not making an argument as to why the statute prevents the EPA from setting these limitations.
“Some people like these kinds of standards,” Kagan said. “If the EPA couldn’t do these standards, presumably they would do something else which might be more prescriptive, which some parties might really hate.”
Read more from Maydeen here.
AMAZON GOES NUCLEAR: Amazon is making a major investment in nuclear power, backing three projects in Virginia and Washington state to support its operations, data centers, and the national grid, which faces strain from unprecedented demand.
The details: Amazon will be entering an agreement with utilities company Energy Northwest to develop four small modular reactors in Washington. The reactors are expected to start pumping energy into the local grid by the early 2030s, with a max capacity of 960 megawatts (enough to power over 770,000 homes).
In Virginia, Amazon is partnering with utility company Dominion Energy to develop an SMR near the North Anna Nuclear power station in Louisa County. The reactor is expected to have a capacity of 300 megawatts, with the energy being supplied directly to the grid. This will not only support local homes and businesses, but large facilities like data centers.
Some background: Amazon’s announcement is just the latest in several high-profile efforts by major tech firms to invest in nuclear power, including Microsoft and Google. Google is also pursuing obtaining nuclear energy through multiple SMRs after announcing a purchase agreement with Kairos Power on Monday.
Read more from Callie here.
MEANWHILE, ADMINISTRATION PROVIDES $900M FOR NUCLEAR PROJECTS: The Biden administration has opened applications for up to $900 million in funding to support the development of SMR technology and spur the deployment of reactor projects within the private sector across the country.
The details: The Department of Energy is accepting applications for two tiers of funding, authorized by the 2021 Bipartisan Infrastructure law. The first tier is dubbed the “First Mover Team Support” and provides up to $800 million for first mover teams of utility, reactor vendor, constructors, and others.
The second tier, “Fast Follower Deployment Support”, is expected to provide up to $100 million to spur additional SMR deployment by addressing hurdles within the nuclear industry in areas like design, licensing, supplier development, and site preparation.
Key quote: “Revitalizing America’s nuclear sector is key to adding more carbon free energy to the grid and meeting the needs of our growing economy—from AI and data centers to manufacturing and healthcare,” Secretary of Energy Jennifer Granholm said.
Some background: DOE estimated that to reach net-zero emissions by 2050, the U.S. will need to secure 700-900 gigawatts of new clean energy capacity. With nuclear energy providing nearly half of carbon-free electricity in 2023, the administration is seeking to increase reactor capacity to reach its lofty climate goals. Currently, there are no SMRs operational in the U.S., with only three operational globally.
FOSSIL FUELS STICKING AROUND: Soaring energy demands from artificial intelligence and widespread electrification will prolong reliance on fossil fuels through the end of the decade, the International Energy Agency has said.
The details: The agency released its annual World Energy Outlook report today, detailing that electricity demand has doubled over the last 10 years. IEA said this is leading to a new age of electricity as China, data centers, EVs and AI are driving demand.
While there has been increased investment in clean energy projects, IEA said it is not enough to meet power demand as well as net-zero targets. This means the phase-out of coal and fossil fuels may take longer than anticipated.
Energy makeup: With electricity demand expected to soar six times as fast as overall energy consumption, IEA said there will need to be a broad electricity generation makeup. Natural gas and coal are expected to lead in generation until 2030, when fossil fuels are projected to peak. By 2035, IEA said solar and nuclear energy will generate most of global electricity – with natural gas and coal still close behind.
Read more from Callie here.
DRIVING ELECTRIC VEHICLE ADVANCEMENTS: The Biden administration is set to issue a more than $670 million loan to a battery manufacturer to produce a key component for electric vehicle batteries at a facility in Georgia.
The details: The Department of Energy’s Loan Programs Office announced the conditional commitment for the $670.6 million loan to Aspen Aerogels Georgia, LLC on Wednesday. If finalized, the loan will go toward paying for the construction on the manufacturing plant in Register, Georgia which is expected to create up to 550 construction jobs and 255 permanent positions.
The facility is expected to produce thermal barriers for over 2 million EVs every year. Thermal barriers are key in preventing batteries from overheating and catching fire. The loan agreement is a major step from the administration in rivaling China’s EV dominance by increasing U.S. manufacturing.
Key quote: “We are making sure that the supply side is made here in this country,” Jigar Shah, director of the Energy Department Loan Programs Office, told Bloomberg. “We have taken very seriously the onshoring of the entire supply chain.”
PUERTO RICO GETS AID FOR LARGE SOLAR AND BATTERY PROJECT: The Department of Energy announced yesterday it has finalized a $861.3 million loan to construct two solar photovoltaic farms equipped with battery storage and two standalone battery energy storage systems in Puerto Rico.
Specifically, the facilities will be located in the cities of Guayama and Salinas to help provide clean, reliable, and affordable power to communities, the department said in a press release.
The project would add 200 megawatts of solar generation and 285 megawatts of storage capacity to Puerto Rico’s electric grid. Annually, the department said the solar installation would produce around 460,000 megawatt-hour of energy that could power about 43,000 homes.
Through the DOE’s Loan Programs Office, Clean Flexible Energy, LLC, an indirect subsidiary of The AES Corporation and TotalEnergies Holdings USA, Inc. will receive the money.
BOOSTING GREEN BEFORE KICK OFF: Morocco is reportedly looking to double its green electricity generation in the Western Sahara before co-hosting the FIFA World Cup in six years.
The details: Morocco will be co-hosting the quadrennial men’s tournament with Portugal and Spain in 2030. By 2027, the North African country is looking to add around 1.4 gigawatts of new wind and solar capacity, according to Bloomberg.
An energy ministry official confirmed the deadline to the outlet, saying that the projects will cost around 21 billion dirhams ($2.1 billion). Local and foreign private investors are expected to fund the projects.
The Western Sahara region reportedly has a current green energy capacity of around 1.3 gigawatts, making up roughly 25% of Morocco’s renewable capacity.
EPA SAYS GHG EMISSIONS ARE DOWN: The EPA yesterday released its 2023 greenhouse gas data report, stating that large stationary sources, representing 50% of U.S. emissions, decreased emissions by 4% last year.
Specifically, 1,320 power plant facilities emitted about 1.5 billion metric tons of carbon dioxide. Power plants are the largest source of greenhouse gas emissions. But the agency said power plants from 2022 to 2023 decreased emissions by 7.2% as many shifted from coal to natural gas.
Since 2011, power plants have decreased emissions by 33.8%. Due to this reduction, all large facilities have reduced emissions by 22% from 2011 to 2023.
However, the second largest polluters, petroleum and natural gas systems, reported emitting 322 million metric tons of emissions, a 1.4% increase in 2023.
ELECTION COUNTDOWN: Presidential candidates aren’t the only thing on the ballot in some states this November, as voters in Washington state will make their voice heard on an initiative looking to protect natural gas.
Washington voters will be asked to vote in favor or against Initiative 2066, which would ban state and local governments from restricting access to natural gas for purposes like heating and cooking. It would also block the state from discouraging or penalizing the use of natural gas in buildings and require utilities to provide natural gas even if other energy sources are available. The current state building code incentives buildings to opt for electrification, such as through heat pumps, but does not mandate doing so.
Supporters of the initiative have said it will “stop the gas ban” in the state, however, there are no existing bans on natural gas in Washington. If approved, initiative 2066 would ensure no future bans on natural gas could be implemented. Meanwhile, opponents claim the initiative attacks the state’s efforts to become more energy efficient and rollback climate targets.
There are 19 days until Election Day.
RUNDOWN
Inside Climate News As Solar Booms in the California Desert, Locals Feel ‘Overburdened’
The New York Times A Fading Tree, Once Majestic, Had to Come Down. But It Wasn’t the End.
Associated Press Pressure grows for countries to deliver on promised biodiversity targets at UN conference