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BIG BLOW FOR OFFSHORE WIND: The Interior Department has announced two more buyout agreements to kill various offshore wind projects and increase investment in fossil fuels. 

Minutes ago, the agency announced that it had struck agreements with Bluepoint Wind and Golden State Wind to end the projects’ offshore wind leases in exchange for a “dollar-for-dollar reimbursement” for what they paid when they secured the leases under the Biden administration. As part of the agreements, the project developers have agreed to invest in natural gas and oil assets. 

What’s affected: The Bluepoint Wind offshore project was being developed by Ocean Winds and BlackRock’s Global Infrastructure Partners. Global Infrastructure Partners has agreed to invest up to $765 million in a liquefied natural gas facility. In exchange, Interior will reimburse the firm and cancel the offshore lease located off the coasts of New York and New Jersey. Bluepoint Wind specifically has also agreed to not pursue new offshore wind projects in the U.S. 

On the West Coast, Golden State Wind has agreed to cancel its offshore wind lease in exchange for roughly $120 million in lease fees. Though the developers will only be able to recover the funds after making an investment of an “equal amount” in U.S. oil and gas assets, energy infrastructure, and/or LNG projects along the Gulf Coast, Interior said. The project has also agreed not to pursue offshore wind projects in the U.S. 

“The companies that bid for these offshore wind leases were basically sold a product in 2022 that was only viable when propped up by massive taxpayer subsidies,” Interior Secretary Doug Burgum said. “Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure.” 

ZELDIN ON THE HILL: Environmental Protection Agency Administrator Lee Zeldin will be testifying before Congress this week on the president’s 2027 budget request, which if passed, would cut the agency’s budget in half. 

The White House 2027 budget request would slash the EPA’s funding by 52% from 2026 levels.  

The budget would further cut environmental justice programs, which the administration said “promote divisive racial discrimination.” It would also end the Atmospheric Protection Program and Diesel Emissions Reduction Act grants, slash state funding for water infrastructure, and end grants for state environmental programs. The budget would also not provide additional funding for Superfund cleanup. 

It added that it would put an “end to unrestrained research grants, woke environmental justice work, radical climate research, and skewed, overly-precautionary modeling that influences regulations—none of which are authorized by law.” 

Zeldin is set to testify before the House Appropriations subcommittee today. The administrator will then testify before the House Energy and Commerce subcommittee on environment tomorrow. Then, on Wednesday, Zeldin will go before the Senate Environment and Public Works Committee.  

LATEST ON IRAN: While peace negotiations have stalled, Iran offered a new proposal to reopen the Strait of Hormuz and end the war earlier today. 

The proposal, first reported by Axios, delays negotiations regarding a nuclear deal, meaning the U.S. is unlikely to accept the terms.

White House press secretary Karoline Leavitt confirmed this afternoon that President Donald Trump plans to meet today with top national security officials to discuss the proposal and options the U.S. still has to move forward. 

“You’ll hear directly from the president, I’m sure, on this topic very soon,” Leavitt said. 

Stay tuned for more. 

MARKET REACTION: Oil prices rose this afternoon, with international and domestic benchmarks sticking around the $100 per barrel line. Just before 3 p.m. EDT, Brent Crude was up 2.75% and priced at $108.23 per barrel. West Texas Intermediate had also risen by 2.16% and was selling at $96.39 per barrel. 

Industry warnings: Goldman Sachs is now predicting that, if the war extends through the summer and energy exports through the Strait of Hormuz fail to hit pre-war levels by the end of July, oil prices could average nearly $120 per barrel by the end of the year.

Under current conditions, the bank has forecast that Brent will trade at around $90 a barrel in the last quarter of 2026, if energy flows return to normal by the end of June. 

As for WTI, Goldman Sachs predicts that it will trade around $83 a barrel by the end of the year. 

And if oil prices stay elevated, so will gasoline. 

Chevron CEO Mike Wirth warned yesterday that it’s “very hard to say” that gasoline prices have peaked in the U.S. 

“Even if the strait were to open today, getting supplies to where they’re needed and resuming the normal functioning of the system is going to take some time,” Wirth said. 

CEO STANDARD LITHIUM SAYS BILATERAL AGREEMENTS MAY TAKE TIME: Standard Lithium CEO David Park said the Trump administration’s bilateral agreements with other countries on critical minerals may take considerable time to complete.

Standard Lithium is seeking to develop the South West Arkansas Project to produce battery quality lithium carbonate from the Smackover Formation Brines in Southern Arkansas. The project is currently a transparency project under the federal permitting program known as FAST-41. 

At the SAFE Summit today, Park said the project’s permitting process is expected to be complete by the end of the month. He noted that the administration’s support for the company has been “complementary and appreciative.” 

However, Park added that the administration’s seeking to strike “55 plus agreements, over 35 critical minerals, and all the different permutations of those. None of those agreements are going to be meaningful for us in the timeline, that’s meaningful for us.”

The administration has proposed creating a trading bloc with 55 allied countries to diversify the critical mineral supply chain. 

“We have a well established system where you have Section 232 investigations, then there’s recommendations, and then tariffs are put in place. That would have been a much more efficient, easier answer,” Park said. 

He added, “I hope to be proven wrong, but striking these 55-plus deals across all those different commodities is going to take a long time.”  

GLOBAL CARBON SHIPPING TAX UP FOR DISCUSSION THIS WEEK: The United Nations International Maritime Organization’s carbon tax on the global shipping industry is back on the table this week for the first time since the Trump administration successfully delayed a vote on the levy. 

Quick reminder: Last October, the Trump administration forced the IMO to delay voting on whether to adopt the carbon shipping tax, also known as the net-zero framework. The year-long delay came as a shock to many, as many member states of the IMO were confident they had the votes to adopt the measure as international maritime law. The U.S. has attempted to block the measure for months, with the administration claiming it would increase the costs of goods for American consumers. 

One of the main purposes of the tax is to accelerate a transition to use of cleaner fuels for vessels, charging shipowners a minimum tax of $100 for every ton of carbon dioxide emitted over a predetermined baseline. 

What to watch: The IMO’s Marine Environment Protection Committee is holding its 84th session meeting this week, the first session since the vote was delayed. The meetings are expected to focus on finding pathways to move forward on the framework and address various comments and concerns brought up last fall. 

Several nations, including Liberia and Japan, have since submitted alternative plans to the framework, which was agreed upon in April of last year, according to Politico. 

Rear Adm. Wayne Arguin, with the U.S. Coast Guard, reportedly warned members last week that, in its current state, the net-zero framework is poised to fail. 

“We can say at this point there is a clear, strong and sizable bloc of countries opposed to the NZF and no prospect of achieving consensus around that proposal,” Arguin said at a technical meeting of the IMO last week, according to Politico. 

We’ll be watching the IMO meetings and bring you the latest throughout the week! 

ICYMI – NRC UNVEILS LICENSING RULES FOR MICROREACTORS: The Nuclear Regulatory Commission is looking to make it easier for nuclear developers to build microreactors in the U.S., announcing a new licensing framework. 

The details: On Friday, the NRC unveiled what it described as a “groundbreaking” proposed rule that would allow for the rapid and safe deployment of microreactors, meaning nuclear reactors that have a capacity of around 100 megawatts or less. 

The rule, which is expected to be published in the Federal Register on May 6, could save up to $11.84 billion for the industry and federal government by streamlining reviews and approvals, the NRC said. 

The proposed framework, which can be found here, includes measures such as allowing developers to request approval for a fleet of identical reactors, allowing appropriate use of alternative design standards and programs, streamlining environmental reviews for projects with minimal impacts, and providing a pathway for limited construction before receiving an NRC permit allowing operation. 

“This regulatory framework for microreactors marks a major step toward modernizing the licensing process for advanced nuclear reactors,” NRC Chair Ho Nieh said. “Part 57 is designed to deploy microreactors with safety, scale, and speed.”

Some background: The new rules come just one month after regulators unveiled a new regulatory process for advanced nuclear reactors, such as small modular reactors, to be built and licensed in the U.S. The March rules marked the first time that the NRC issued a new reactor licensing framework since 1989. 

A LOOK AHEAD 

April 27 – 30 The 13th annual Energy Thought Summit is being held in San Antonio, Texas. 

April 27 – May 1 The International Maritime Organization’s Marine Environment Protection Committee is meeting for its 84th session. 

April 27 The House Appropriations Subcommittee on Interior, Environment and Related Agencies is holding a budget hearing for the Environmental Protection Agency. 

April 28 The Stimson Center is holding a webinar titled, “Implications of the War in Iran for Climate Security.”

April 28 The House Science, Space, and Technology Subcommittee on Environment is holding a budget hearing for the National Oceanic and Atmospheric Administration. 

April 28 The House Energy and Commerce Subcommittee on Environment is holding a budget hearing for the Environmental Protection Agency. 

April 29 The Senate Environment and Public Works Committee is holding a budget hearing for the Environmental Protection Agency. 

April 29 The Senate Energy and Natural Resources Committee is hosting a hearing to examine the 2027 budget request for the Interior Department. 

April 29 The House Natural Resources Subcommittee on Energy and Mineral Resources is holding a hearing on copper. 

April 30 E&E News is holding a panel discussion with several reporters to discuss the renewable energy permitting fight in Congress. 

April 30 The Federalist Society is holding a webinar on artificial intelligence and affordable electricity, featuring remarks from former FERC chair Mark Christie.  

April 30 The Center for Strategic and International Studies is holding an AI for Food Security Forum. 

April 30 The Senate Appropriations Subcommittee on Department of the Interior, Environment, and Related Agencies is holding a fiscal year 2027 budget hearing for the U.S. Forest Service. 

May 1 The U.S. Chamber of Commerce is hosting its Energy Future Forum in Washington, D.C. 

May 2 is Daily on Energy’s own Callie Patteson’s birthday! 

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