WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! The finalists for the 2026 Nikon Comedy Wildlife Awards were announced over the weekend, with the winner set to be revealed on Dec. 8. Check out some of the finalists’ photos here.
In today’s newsletter, we take a look at whether President Donald Trump’s executive order allowing for greater access to red-dyed diesel will provide the relief farmers and truckers are looking for.
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.
Who benefits from dyed diesel access?
President Donald Trump has expanded access to tax-exempt red-dyed diesel to combat record-high fuel prices, but it may provide only limited relief to farmers and truckers.
Dyed diesel is mainly used in the agriculture and industrial sectors to power off-road vehicles. Trump’s order would expand its use to all drivers and defer the 24.4 cent per gallon tax for a year while exploring avenues to eliminate it.
The White House claims that the order would save truckers and farmers about $60 per fill-up, but it might not be that simple.
Gas Buddy analyst Patrick De Haan wrote that farmers are unlikely to see significant relief from the president’s executive order because they already rely on tax-free dyed diesel for their operations.
Still, the American Farm Bureau Federation applauded the president’s order, stating that it would provide relief for farmers because “every cent per gallon matters…”
The order addresses the federal restrictions on dyed diesel, but states have their own laws that make it illegal to use the fuel on public roads.
“States have their own motor fuel/diesel taxes, which are often higher than the 24.4c/gal diesel tax, and they have their own laws banning dyed fuel in on-road or highway vehicles,” De Haan wrote. “A presidential order can’t override state tax law.”
Andy Lipow, president of Lipow Oil Associates, told Maydeen that truckers will gain only a limited benefit from the executive order because individual states would need to exempt their restrictions.
“If you’re a trucker, and you are going, say, cross country. You might fill up with your diesel fuel in a state that permits its use on the road,” Lipow said. “But what happens when you cross state lines and go to a state that does not permit its use?”
The order calls on states to suspend their enforcement on dyed diesel. Several states have already temporarily suspended restrictions on using dyed diesel.
“You need federal and state approval in order to get this to work, and you need it on a widespread basis,” Lipow added.
De Haan noted that the order’s impact at the pump is “likely to be limited and flat-out lumpy.”
All the rest:
IEA TO DECIDE DETAILS OF G7 OIL AND DIESEL RELEASE NEXT WEEK: The International Energy Agency plans to provide more details on its plan to release 100 million barrels of oil and diesel from the G7 emergency stock.
Reuters reported that the IEA will hold a board meeting on Oct 14-15 to work out details of the fuel release.
As a reminder, the G7 last week agreed to release emergency oil and diesel to curb high prices but did not provide a breakdown of the volumes it would release. The IEA will be coordinating the release of the fuels.
TOP AIR REGULATOR LEAVES EPA: Environmental Protection Agency top air regulator Aaron Szabo has officially left the agency.
Szabo, who led the agency’s Office of Air and Radiation as assistant administrator, left Friday, Reuters reported. He was expected to leave the agency in July but was asked to remain in his post longer.
During Szabo’s time at the agency, the EPA repealed the 2009 Endangerment Finding and has worked to roll back emission standards for power plants.
The EPA told Reuters that Szabo has done “tremendous work” to advance the administration’s agenda, helping deliver “the single largest deregulatory action in U.S. history.”
The agency did not say who would replace Szabo.
WHERE ELECTRICITY PRICES ARE RISING THE MOST: The Department of Energy’s Energy Information Administration released its monthly Short-Term Energy Outlook this earlier today, offering new estimates on where electricity prices are increasing the fastest, and by how much.
The EIA estimates that nationwide wholesale electricity prices will average around $52 per megawatt-hour this year, roughly 11% higher than prices in 2025.
One of the largest drivers of the higher prices has been “weather-related increases,” the EIA said. The agency specifically pointed to record-breaking summer temperatures, which increased electricity consumption by 4% during the third quarter of this year.
The EIA said wholesale electricity prices within the PJM region are on track to rise by 41%, while prices in the Northwest Mid-Columbia region fell by 23%.
WANT A SMALL NUCLEAR REACTOR BUILT IN YOUR TOWN? APPLY NOW: If you live in Indiana and your community is interested in helping develop nuclear energy, now is your time to speak up.
Republican Gov. Mike Braun has opened applications for local leaders to submit their community for consideration to host next-generation nuclear energy infrastructure, such as small modular reactors.
All counties and regions in Indiana are eligible for the program, which Braun said will “empower” local communities and clear a pathway for clean energy investments in Indiana.
“By leading the way in advanced nuclear development, we are making a direct investment in long-term energy affordability, ensuring our businesses stay competitive and our utility costs remain stable and resilient for generations to come,” he said in a statement.
Local leaders can make the case for their community and find helpful materials here.
GOOGLE GRABS MORE NUCLEAR: Google is expanding its use of nuclear energy, striking an agreement with Constellation Energy today to buy more nuclear power and add nearly 1,000 megawatts of reactor capacity to the grid.
The 20-year power purchase agreement announced this morning is expected to drive more than $4.3 billion in new investment in the nuclear energy industry, particularly at 11 nuclear reactors owned and operated by Constellation in Illinois, Pennsylvania, and New Jersey.
The utility said the investments will “unlock additional reliable, firm power” for the grid, and bring about 890 megawatts of new nuclear capacity online. It will also help sustain around 4,400 existing jobs, and create 7,200 new construction jobs.
The new capacity is expected to hit the grid as soon as 2028.
Under the agreement, Google also plans to buy an additional 2.7 gigawatts of nuclear capacity generated by Constellation power stations within the PJM Interconnection region.
For comparison, one megawatt of nuclear-generated energy is estimated to be enough to power up to 1,000 homes.
EUROPE DELAYS METHANE RULES: The European Union has officially decided to delay implementation of its controversial methane reporting rules, marking a win for the Trump administration, which has been pressuring the bloc to scrap the regulations entirely.
Quick reminder: The methane reporting rules were set to go into effect on New Year’s Day and would require foreign producers to comply with methane monitoring and reporting rules equivalent to those in Europe. Fines will be imposed on companies who fail to comply.
What’s new: European Commission President Ursula von der Leyen told Parliament earlier today that the bloc would be giving the industry one more year to prepare for the methane rules. The change is in large part driven by surging energy costs caused by supply disruptions associated with the war in Iran.
“Tackling high energy costs is our priority,” she said. “We are working on short-term measures at home – each tailored to specific national situations. And we are working on securing supplies while bringing prices down.”
STALLED DEVELOPMENT OF NORTH SEA OIL COULD LEAVE U.K. INDUSTRY ‘UNINVESTABLE’: United Kingdom Prime Minister Andy Burnham is facing more pressure from the oil and gas industry to ease restrictions on drilling in the North Sea or risk having investors lose interest altogether.
Quick reminder: In the days before Burnham took office over the summer, rumors circulated that he would lift the U.K.’s ban on new drilling licenses for the North Sea. This would largely break with the Labour Party’s efforts to reduce reliance on fossil fuels.
At the end of July, Burnham acknowledged that the North Sea holds a crucial “resource” for the nation and that he was planning to take a “pragmatic approach” regarding it. Trump has further generated speculation, claiming Burnham promised to open up the North Sea.
As of October, however, the prime minister has not announced any major decision regarding the region.
What’s at the focus: Burnham is specifically being called to approve a pair of drilling licenses previously issued for the North Sea that have been caught up in court. Early last year, the Court of Session in Edinburgh overturned the license approvals for the Jackdaw and Rosebank oil and gas projects issued in 2022 and 2023.
Earlier today, the CEO of Norwegian energy major Equinor said he expects both of these projects to be approved, according to the Financial Times.
The CEO, Anders Opedal, said it would be a “major setback” if Burnham decides against approving the licenses, adding that foreign companies will be forced to ask whether “the UK is investable.”
RUNDOWN
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[ H/T Washington Examiner ]
