WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, readers! The Seattle Seahawks held their annual Corgi Cup yesterday afternoon, during their game against the Los Angeles Chargers.
We’re kicking off this week with the Supreme Court starting its fall term with what could be the most consequential climate change-related case in modern history. If you didn’t get to tune into the arguments, we have what you need to know below!
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 TAKES ON CLIMATE CHANGE CASE:
This morning, the Supreme Court kicked off its fall term with a banger of a case that will decide if states and localities can collect damages from oil and gas companies for their contributions to climate change.
Now, we won’t rehash every aspect of the case – last week Callie wrote up an explainer touching on the primary arguments and why we might not even get a ruling here.
But here’s the gist: Boulder County, Colorado, has sued Suncor Energy and Exxon Mobil, claiming the fossil fuel companies deceived the general public about the dangers of their oil and gas operations and the associated effects on climate change through their advertising and marketing. Last year, the Colorado Supreme Court allowed the suit to continue to state court. And the oil companies have asked the justices to overturn the ruling, arguing that Boulder’s claims are preempted by the Clean Air Act.
What you might have missed: If you weren’t able to tune into this morning’s hearing, the main thing you missed is that the justices are far from reaching a unanimous agreement.
Perhaps what was most interesting was Justice Amy Coney Barrett’s reservations about the fossil fuel companies’ argument. Barrett, who was appointed by President Donald Trump during his first term, questioned the oil companies over their claim that the Clean Air Act gives the Environmental Protection Agency the primary authority to regulate emissions – thereby preempting state law.
This argument, however, clashes with the Trump administration’s own claims that the Clean Air Act does not give the EPA the authority to regulate emissions for vehicles and power plants – a claim affirmed by the agency as recently as last month.
Suncor’s lawyer, Kannon Shanmugam, disregarded the recent EPA rulings, saying that “any decision the EPA makes has no bearing on our argument concerning constitutional structure. Our arguments concerning constitutional structure apply with full force, regardless of what EPA says.”
Barrett criticized the argument, telling Shanmugam, “Ok, well I think that’s a little slippery.”
Other key questions: The justices also pressed the attorneys on whether the high court actually has the authority to hear the case without a final judgment from Colorado courts, or if it is too early and needs to proceed to trial.
Chief Justice John Roberts and Justice Elena Kagan both questioned whether there are situations where pollution caused in one state could be subject to a different state’s laws if it is directly harming that first state.
Additionally, several of the justices questioned why Shanmugam was not just making the argument that the Clean Air Act forecloses the lawsuit, something they said would be easier under the high court’s precedents.
For more details on what went down during this morning’s hearing, check out this article from the Washington Examiner’s Supreme Court reporter Jack Birle here.
All the rest:
TRUMP TO UNVEIL ORDER FOR GREATER ACCESS TO DYED DIESEL: President Trump plans to unveil an executive order today to allow for greater access to red-dyed diesel.
Red-dyed diesel is typically reserved for off-road uses, such as farming. Dyed diesel is also exempt from the highway fuel tax of 24.4 cents per gallon.
Reuters reported that the executive order would also direct the Transportation Department to coordinate with states to waive taxes on road diesel. Many states in recent weeks have already waived taxes on diesel or have allowed for more access to dyed diesel.
The national average price for diesel remains at a record high of $6.32 per gallon.
The president has also retreated from imposing an export ban on diesel after European countries agreed Friday to release emergency stock of oil and diesel.
GLOBAL OIL RESERVES ‘SCARILY THIN,’ SAUDI COMPANY WARNS: The CEO of Saudi Aramco, Amin Nasser, is warning that that worldwide stockpiles of crude oil have hit “scarily thin” levels, as the war in Iran continues.
“The system is already straining,” Nasser said during the Energy Intelligence Forum conference in London today. “And with precious little else the world can turn to, the supply resilience cushion is scarily thin.”
Nasser estimated that before the war began, the world had almost 10 billion barrels of global oil reserves. And amid months-long disruptions caused by significant dips in traffic through the Strait of Hormuz, supplies have dropped by nearly 3 billion barrels. Of what remains, however, he said the “vast majority” is not “practically available.”
“Until Hormuz fully re-opens and confidence returns, the crude reality is that pressure at both ends of the barrel will intensify,” Nasser said.
Even once normal flows through the strait resume, he estimated, it will take up to two years to replenish global reserves.
BAKER HUGHES SIGNS MAJOR VENEZUELA GAS INFRASTRUCTURE DEAL: Baker Hughes signed agreements to expand Venezuelan natural gas infrastructure, potentially paving the way for LNG exports.
Baker Hughes signed a deal with PDVSA, Lindsayca, and Fulcrum LNG, Inc. to revitalize the country’s natural gas infrastructure and supply chain. The partnership would create a framework to connect the country’s upstream resource development, midstream infrastructure, gas monetization, and LNG commercialization.
Baker Hughes said the goal is to turn Venezuela’s LNG resources into reliable domestic supply and future export opportunities. Separately, it signed a memorandum of understanding with New Stratus Energy Inc. to support oil and gas development.
GOVERNMENT FUNDING FOR POWER LINES IN ALASKA: The Department of Energy plans to spend $150 million to build out hundreds of miles of transmission lines in Alaska, strengthening the remote state’s electricity grid.
The project, known as the Alaska Energy Authority’s Beluga-Healy Transmission Project, will receive an additional $268 million in non-federal funding.
The project will deploy 223 miles of new transmission lines, connecting Beluga and Healy.
“Alaska’s weather is unforgiving, and its grid needs another way to keep power moving,” Office of Electricity Assistant Secretary Katie Jereza said.
Some background: The funding stems from the Defense Production Act, a Cold War-era law that gives the president authority to prioritize government funding and contracts for certain industries to support national defense. Trump signed five executive orders in April invoking the DPA, declaring the development, manufacturing, and deployment of large-scale energy infrastructure are critical to national defense.
MORE THAN $4B GOING TO UPGRADE NUCLEAR POWER PLANTS: Energy Department officials announced a $4.2 billion conditional loan commitment this morning for Vistra to upgrade and modernize three nuclear power plants in Ohio and Pennsylvania.
The three existing facilities, Beaver Valley, Davis-Besse, and Perry, have a combined capacity of nearly 4 gigawatts, enough to power more than 3 million homes.
The projects funded through the government loan are expected to add roughly 433 megawatts of capacity and support approximately 3,000 jobs.
As a reminder: Developing the nuclear energy industry has been driven by the president’s aim of expanding U.S. energy production while also securing enough baseload power to meet rising demand brought about by artificial intelligence and data centers.
Nuclear energy has a capacity factor of around 92.3%, higher than any other energy source. That means nuclear power plants can produce reliable and secure power more than 92% of the time.
EUROPEAN ELECTRIC VEHICLE SALES REACH RECORD: Reuters reported that the Brussels-based environmental advocacy group Transport & Environment found that EV sales across the European Union reached record levels, with 1.64 million sold from January to August, which is up 45% year-on-year.
EVs made up 22% of the market during this time period, which is six points higher than the same period last year. The report called it a “pivotal year for EV availability,” with model choice up 50% in a single year as manufacturers look to meet EU emissions targets.
Car brands like Volkswagen have also rolled out more affordable EVs for consumers.
Gasoline-powered vehicles are now making up the minority of new global car sales.
Electrek reported that data from Mobility Global shows that gasoline cars made up 49% of global new-vehicle sales in the first half of the year, which is down from 73% in 2021.
A LOOK AHEAD:
Oct. 5 – 6 The Energy Intelligence Forum Conference is being held in London, England.
Oct. 5 – 7 The Environmental Markets Association annual meeting is taking place in Annapolis, Maryland.
Oct. 6 – 7 The Hydrogen Americas Summit and Exhibition is being held in Houston, Texas.
Oct. 6 Rystad Energy’s Annual EMEA Summit is being held in London, England.
Oct. 7 – 8 The Virginia Clean Energy Summit is taking place in Richmond, Virginia.
Oct. 7 – 8 The California Energy Storage Alliance Market Development Forum is being held in Sacramento, California.
Oct. 7 The International Energy Agency’s Electricity Security Advisory Board is holding its annual meeting in Paris, France.
Oct. 8 The American Council on Renewable Energy is holding a webinar titled “The Permitting Reform Deal: What’s In, What’s Out, What’s Next.”
Oct. 9 The Bipartisan Policy Center is hosting a webinar diving deep into the Bipartisan American Affordability and Jobs Act.
RUNDOWN
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[ H/T Washington Examiner ]
