WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, readers! Washington, D.C., could be in for some snow again this weekend and, after a few balmy days in the District this week, I think some of us here have some sharp words for Punxsutawney Phil and his six weeks of winter prediction 🥶❄️.
We are kicking off the newsletter today with a scoop out of California, as state Democrats look to pave the way for advanced nuclear projects to be built after being blocked for nearly 50 years ☢️🏄.
Plus, we have all the latest on the Supreme Court’s decision to strike down President Donald Trump’s tariffs as well as the Environmental Protection Agency’s final methane rule 🏛️. Keep reading to learn more!
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: With the midterm elections fast approaching, Republicans face an uphill battle in holding the majority, as voters may be quick to blame the GOP for soaring energy prices, some experts now suggest.
“You’ve got this general perception that if I want to blame somebody for all these problems, sort of general price escalation and environment degradation, whatever else goes with that, the easiest thing to do is just to vote against whoever is in charge at the moment,” Mack Shelley, a political scientist at Iowa State University, told the Examiner’s Mabinty Quarshie this week.
SCOOP – CALIFORNIA DEMOCRATS BACK BILL TO AMEND NUCLEAR BAN: California Democrats plan to introduce a bill that would amend the state’s effective ban on new nuclear energy, paving the way for advanced nuclear reactors to be built in the state and meet soaring power demands while still addressing greenhouse gas emissions.
The details: California State Assemblymember Lisa Calderon, who represents parts of southeastern Los Angeles County and the San Gabriel Valley, was expected to introduce the bill today, according to draft documents obtained by Daily on Energy.
The legislation, titled “Modernizing California’s Nuclear Moratorium and Mitigating Climate Change,” would update the state’s nuclear moratorium to clarify that it no longer applied to advanced reactors licensed by the Nuclear Regulatory Commission after Jan. 1, 2005.
The bill would not mandate future investment in nuclear technologies, but instead would focus on removing regulatory barriers for utilities, lawmakers, and companies to pursue all reliable options to support growing energy needs and still hit the state’s net-zero goals.
“Recognizing nuclear energy’s critical role in achieving carbon neutrality, at least five other states have already repealed or modified similar nuclear moratoria, recognizing that these outdated restrictions are incompatible with modern clean energy goals,” the draft fact sheet obtained by Daily on Energy reads.
The bill, which has the support of groups like the Breakthrough Institute and Oppenheimer Project, was also co-sponsored by Democratic Assemblymembers John Harabedian and Alex Lee, as well as Republican state Sen. Brian Jones.
Our take: Calderon’s bill is the latest evidence that progressive Democrats are embracing nuclear energy technology, decades after the party led anti-nuclear protests and rallies across the country. Other Democratic-led states like New York and Illinois have also lifted longstanding barriers to new nuclear projects while also making commitments to build out several gigawatts of nuclear capacity.
“I think there’s been a really broad recognition that we cannot meet decarbonization goals without contribution from nuclear,” Valerie Gardner, founder and managing partner of Nucleation Capital, previously told Callie.
You can read more about this trend here.
Quick reminder: In 1976, California placed a moratorium on the licensing and construction of nuclear reactors until the federal government established a permanent solution for radioactive waste disposal.
SUPREME COURT STRIKES DOWN TRUMP TARIFFS: The Supreme Court struck down Trump’s sweeping “Liberation Day” tariffs as unlawful without congressional approval.
The high court ruled 6-3 against the president’s use of the International Emergency Economic Powers Act, or IEEPA, to impose sweeping tariffs on foreign nations. The IEEPA is a law that allows the president to regulate imports during a time of national emergency.
Chief Justice John Roberts authored the ruling, and was joined by Justices Sonia Sotomayor, Elena Kagan, Neil Gorsuch, Amy Coney Barrett, and Ketanji Brown Jackson.
Justices Clarence Thomas, Brett Kavanaugh, and Samuel Alito dissented.
Trump used IEEPA to impose “reciprocal tariffs” for a number of countries with a 10% baseline rate and higher rates for select countries. The president has also used tariffs against Mexico, Canada, and China over the flow of fentanyl into the U.S.
Tariffs on aluminum, steel, cars, and other products are not affected by the ruling, as they were implemented through a different trade law.
Trump at a presser said he would be signing orders that he would “impose a 10% global tariff under Section 122.”
“We’re also initiating several sections, 301 and other investigations to protect our country from unfair trading practices of other countries and companies,” the president added.
Read more by Washington Examiner’s Supreme Court reporter Jack Birle here.
EPA FINALIZES METHANE RULE: The Environmental Protection Agency rescinded the Biden administration’s updated air toxic standards for coal-fired power plants.
The Biden administration in 2024 finalized updates to the Mercury and Air Toxic Standards (MATs) for coal-fired power plants. The regulation would have imposed a 67% reduction in toxic metal emissions and a 70% cut in mercury emissions from lignite-fired sources.
The initial compliance deadline for the standards was in 2027, but in April the president signed an executive order extending it to 2029.
Today, in Kentucky, the EPA announced it has repealed the Biden administration’s updated MATs, reverting compliance back to 2012 standards.
The EPA argued that reverting back to 2012 standards would save Americans $670 million in the form of lower costs for transportation, heating, utilities, farming, and manufacturing.
“The Biden-Harris Administration’s anti-coal regulations sought to regulate out of existence this vital sector of our energy economy. If implemented, these actions would have destroyed reliable American energy,” EPA Administrator Lee Zeldin said in a statement.
“The Trump EPA knows that we can grow the economy, enhance baseload power, and protect human health and the environment all at the same time. It is not a binary choice and never should have been,” Zeldin added.
REPUBLICANS TARGET GREEN GROUPS OVER ALASKAN OIL PROJECT: Republican lawmakers have reportedly launched a probe into six major environmental and conservation groups over their efforts to stop a major oil project in Alaska.
Some background: The Center for Biological Diversity, the Defenders of Wildlife, Friends of the Earth, Earthjustice, Natural Resources Defense Council, and Greenpeace have long opposed ConocoPhillips’ $9 billion oil project in northern Alaska, known as the Willow Project.
The venture is expected to produce around 600 million barrels of crude oil over the course of 30 years, with production beginning in 2029. These groups have attempted to halt the project via lawsuits, claiming the project poses serious environmental and climate risks.
What’s new: House Republicans with the Natural Resources Committee have launched an investigation into these groups, saying they are concerned about the organizations’ coordination with other activist groups that employ “lawfare strategies, including ethically dubious sue and settle tactics.”
“Given Greenpeace’s questionable litigation strategies and the importance of Willow to Alaskan economic prosperity and American energy security, the Committee is keen to uncover the details of Greenpeace’s opposition to the project,” Natural Resources Committee chairman Bruce Westerman wrote in the letter to Greenpeace.
As part of the probe, the committee is requesting documents and communications regarding the Willow Project between the green groups themselves, as well as federal agencies, including the Interior Department, Bureau of Land Management, and National Oceanic and Atmospheric Administration. Lawmakers are also asking for any communications between the groups and any Russian, Chinese, Iranian, or North Korean nationals.
WHAT’S NEW WITH RIGS AND PRICES: For the second week in a row, there was no change in the number of active oil and gas drilling rigs in the U.S.
Data released by Baker Hughes this afternoon showed there were zero rigs added or dropped from the total tally of 551. Broken down further, the oilfield service company found that one offshore rig was added and one land rig was taken off – zeroing out each other. While the number of active rigs is unchanged, it is still 41 fewer than this time last year.
Where prices sit: As Trump weighs a limited military strike against Iran, oil prices remained near six-month highs this afternoon. Just before 3 p.m. EST, West Texas Intermediate was selling at $66.33 per barrel, up from $62.89 last week. Brent Crude was also up for the week, priced at $71.64 per barrel, a nearly $4 increase from last Friday.
Some analysts have warned that prices will spike if tensions increase and if the U.S. also pursues regime change in Iran. In a research note obtained by Barron’s today, Gavekal Research analyst Tom Holland warned crude prices could end up near $100 a barrel.
INDIA LOOKS TO VENEZUELA TO DIVERSIFY OIL SUPPLY, WITH TRUMP’S HELP: The Trump administration is reportedly in “active negotiations” regarding selling Venezuelan oil to India, after having pressured the country to cut off supplies from Russia.
The details: U.S. Envoy Sergio Gor told reporters in New Delhi today that the Department of Energy is in communication with its counterparts in India on the issue, according to Reuters.
“We’re hoping to have some news of that very soon,” Gor added.
An agreement to increase India’s purchases of Venezuelan crude is likely to come as part of a broader trade deal with the U.S. Gor hinted that the final deal will be signed “sooner than later.”
An interim trade deal with the U.S. is expected to go into effect in April, bringing Trump’s tariffs on Indian goods to just 18%. Trump had increased his tariffs on the country late last year to pressure the Indian government to end all imports of Russian energy products. To ensure the country doesn’t fall back on Moscow, the administration is considering leveraging its position handling the sale and management of Venezuelan oil.
“On the oil, there’s an agreement,” Gor reportedly said. “We have seen India diversify on their oil. There is a commitment. This is not about India. The United States doesn’t want anyone buying Russian oil.”
LATEST ON CALIFORNIA AVALANCHE: Earlier this week, an avalanche near Lake Tahoe in Northern California resulted in the deaths of at least eight skiers.
The avalanche, considered the deadliest in California history, struck a group of backcountry skiers on Tuesday. As of yesterday, officials said there is a ninth skier still missing, but they are presumed dead.
Six of the 15 skiers survived and have been rescued. Rescuers found the other eight skiers, but they have not been recovered due to weather conditions. A crew of five rescuers has been on the mountain since Tuesday, but they have been slowed by storm conditions.
California’s workplace safety agency, Cal-OSHA, announced yesterday that it is launching an investigation into Blackbird Mountain Guides, the company whose guides were leading the group.
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