WHAT’S HAPPENING TODAY: Good afternoon and happy Wednesday, readers! All eyes were on the Senate as the upper chamber continued to consider a number of President Donald Trump’s cabinet picks, including former New York Congressman Lee Zeldin. The Senate confirmed Zeldin in a 56-42 bipartisan vote. Check below to see which Democrats voted in favor of his nomination.
Today’s edition of Daily on Energy takes a look at a new memo issued by recently confirmed Transportation Secretary Sean Duffy, rolling back the Biden administration’s fuel economy standards which sought to reduce emissions. Plus, keep reading to find out why the European Union isn’t issuing a ban on Russian gas just yet.
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.
SENATE CONFIRMS LEE ZELDIN AS EPA ADMINISTRATOR: The Senate has confirmed former New York Rep. Lee Zeldin as the next administrator of the Environmental Protection Agency in a bipartisan vote, paving the way for the Trump administration’s de-regulatory agenda.
The details: Zeldin, 44, was confirmed Wednesday in a 56-42 vote, with Sen. John Fetterman of Pennsylvania and Arizona Sens. Mark Kelly and Ruben Gallego as the three Democrats voting in favor of his nomination. Zeldin is the seventh member of President Donald Trump’s Cabinet to be confirmed since the Republican assumed office.
As administrator, Zeldin is poised to support Trump’s goals of walking back numerous rules implemented by the previous administration. He is expected to take aim at the EPA’s power plant pollution rule, which went into effect in July 2024 and targets carbon pollution from power plants to curb greenhouse gas emissions. The rule orders all operating coal plants and new natural-gas fired plants to reduce their emissions by 2032 by using carbon capture and storage technologies.
Zeldin is also expected to undo fees on methane emissions from oil and gas facilities that exceed certain thresholds as well as EPA emission standards for vehicles that have been labeled an “EV mandate.”
During his confirmation hearing last week, the Republican insisted the EPA “must be better stewards of tax dollars, honor cooperative federalism, and be transparent and accountable to the Congress and the public.”
Read more from Callie here.
TRUMP TRANSPORTATION SECRETARY MOVES TO UNDO BIDEN FUEL STANDARDS: In his first act in office, newly confirmed Transportation Secretary Sean Duffy signed a memorandum last night directing the agency to review former President Joe Biden’s fuel economy standards meant to reduce vehicle emissions.
After being confirmed by the Senate yesterday, Duffy signed a memo to the National Highway Traffic Safety Administration, asking the agency to review its corporate average fuel economy, or CAFE, standards for vehicles and trucks.
“These fuel economy standards are set at such aggressive levels that automakers cannot, as a practical matter, satisfy the standards without rapidly shifting production away from internal-combustion engine (ICE) vehicles to alternative electric technologies,” the memo reads.
In June, NHTSA finalized new fuel economy standards that would require passenger cars to average 65 miles per gallon and light trucks to average 45 miles per gallon by 2031.
However, Duffy’s memo stated that the standards “diminish” the auto industry and make it challenging for consumers to purchase affordable vehicles.
Read more by Maydeen here.
WHITE HOUSE RESCINDS MEMO ON PAUSING FEDERAL GRANTS AND LOANS: The Trump administration’s Office of Management and Budget rescinded its memo to pause federal aid spending.
The memo released yesterday directed federal agencies to pause all federal grants and loans. A federal judge temporarily blocked the freeze before it took effect on Tuesday. However, the White House today rescinded its memo.
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House press secretary Karoline Leavitt said. “The executive orders issued by the president on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments.”
Although it was unclear what climate funding would be affected, Leavitt said yesterday that it would pause funding for the “green new scam.”
Climate groups like the Environmental Protection Network spoke out against the White House’s move, stating it would halt the Environmental Protection Agency’s safe drinking water projects, Superfund cleanup, and sewage construction, costing jobs and harming public health.
SOLAR TRADE GROUP SETS LOFTY ENERGY STORAGE GOALS: The Solar Energy Industries Association (SEIA) has unveiled an ambitious goal of reaching 700 gigawatt-hours of installed energy storage capacity by 2030, a more than 50% increase from current projections.
The details: The solar trade group released its vision for the future of energy storage in the U.S. today, noting that it hopes to see 10 million more distributed storage installations by the start of the next decade.
Through those installations, SEIA said it is aiming to reach 700 gigawatt hours of storage capacity across the country. This is far greater than current forecasts, which estimate U.S. storage capacity will hit 450 gigawatt hours by 2030. Data firm Wood Mackenzie estimates that there is currently only 83 gigawatt hours of installed energy storage capacity in the U.S.
In order to make this happen, the trade group is calling on policy makers, local and state governments, and regional transmission organizations to support an accelerated storage deployment. SEIA has said this can be done by preserving federal tax credits for energy storage systems; permitting, transmission, and interconnection reform; increased domestic manufacturing; and more investment in the industry.
Why this matters: As Trump has narrowed his sights on renewable energy sources like solar and wind power, industry experts remain confident that solar power will still play a key role in meeting long-term demand as long as it is paired with energy storage technologies.
“Solar and storage growth are unlikely to be excessively disadvantaged by new or strengthened tariffs. Years of prior tariffs and restrictions have made solar supply chains resilient and dynamic, historically enabling the industry to manage cost structure,” Jason Kaminsky, CEO of kWh Analytics, told POWER Magazine.
EUROPE NOT PLANNING TO BAN RUSSIAN LNG…YET: The European Union has no immediate plans to ban liquified natural gas from Russia as the bloc is reportedly looking to secure an alternative source first before implementing strict restrictions.
The details: Multiple EU diplomats confirmed to Reuters this week that the European Commission is not yet proposing a ban on Russian LNG. One diplomat told the outlet that any such ban would leave the bloc without gas from both Russia and the U.S. — which was the largest LNG supplier to Europe in 2023.
That’s not to say a ban hasn’t been suggested, as various EU member states are looking to implement stronger restrictions on Russia over its years-long war in Ukraine. However, supply concerns have since dominated discussions as natural gas prices have risen amid colder weather and lack of wind.
“There was never an original measure, so I don’t think it’s useful to talk about it in terms of watering down,” one diplomat said. “The general idea was floated by the Commission in confessionals in order to test the waters…Apparently one or more member (state) signalled enough opposition for the Commission not to deem it opportune to propose such a measure now.”
U.S. relations: The new Trump administration may give the EU the opportunity to increase its LNG supply from the U.S. as Trump ordered a restart on approvals for new LNG export projects. The president has also indicated he would like the bloc to purchase more LNG, threatening tariffs if they fail to increase their imports.
JAPAN REVISES OFFSHORE WIND AUCTION RULES: Japan’s industry and land ministries made changes to wind power auction rules to ensure the completion of offshore projects, Reuters reports.
The revisions include an electricity price adjustment scheme and a higher deposit requirement to cover delays. An industry ministry official said that under the revised rules, up to 40% of capital cost increases, such as wind turbines, transmission cables and construction, can be incorporated into the auction based on average prices in the year.
The changes are to ensure the completion of offshore wind projects. Reuters noted that companies like Orsted have paid billions in various cancellation fees in 2023 and 2024 due to the rising cost of construction and supply chain disruptions.
ICYMI…FERC FACING LAWSUIT FROM TALEN ENERGY: The Federal Energy Regulatory Commission is being sued by Texas-based Talen Energy over its decision to block an Amazon data center from directly connecting to a Pennsylvania nuclear power plant.
A reminder: In November, FERC rejected a request from the power producer to expand the energy produced at its Susquehanna nuclear plant in Pennsylvania for Amazon. At the time, federal regulators claimed the deal could lead to higher bills for customers and lead to greater risks for grid reliability.
“Colocation arrangements of the type presented here present an array of complicated, nuanced, and multifaceted issues, which collectively could have huge ramifications for both grid reliability and consumer costs,” FERC Commissioner and now-chairman Mark Christie wrote at the time.
Then-chairman Willie Phillips, a Democrat, dissented from the vote. He called it a “step backwards” regarding energy reliability and national security, saying access to reliable electricity is key for data centers, AI advancements, and large-load facilities.
The lawsuit: Talen Energy requested a rehearing on the matter in December, but FERC denied that request as well. Now, the power producer is suing the federal regulators.
In the suit, filed Jan. 16 in the 5th U.S. Circuit Court of Appeals in New Orleans, Talen calls on the court to review FERC’s two rejections, according to E&E News. The suit may result in the commission’s decisions being overturned — paving the way for future data center co-location with nuclear power plants. It may also be upheld, fueling concerns that FERC may deny similar future proposals from Big Tech.
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