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EXCLUSIVE – TOP NUCLEAR REGULATOR SITS DOWN WITH DAILY ON ENERGY: Yesterday afternoon, Callie sat down with the Nuclear Regulatory Commission’s Ho K. Nieh for his first formal interview in his role as chairman. There, they discussed how the agency has streamlined regulations to accelerate nuclear reactor deployment, how fast advanced reactors can come online, if Nieh feels pressure from the White House, and much more.

Speedy SMRs: During the interview, Nieh said the United States could see advanced reactors deployed and generating power by 2030. He pointed to the recent construction permit granted by the NRC in March for the Kemmerer Power Station Unit 1 in Wyoming, which will feature a 345-megawatt small modular reactor. One megawatt can usually produce enough electricity to power 400 to 900 homes.

“They’ve got a construction permit, they’re, you know, finalizing the design, working on the fuel,” Nieh said. “Eventually, they’re going to apply for an operating license in the very near future.”

As to how soon an SMR could be operational in the U.S., Nieh said he believed it could happen by 2030. However, he warned that a specific timeline will not just be up to regulators, as developers are also heavily dependent on factors tied to the commercial side of operations, such as supply chains for specific materials or fuels.

Short-staffed: One of the biggest challenges the NRC has faced over the last year has been the ability to meet accelerated timelines, while losing hundreds of employees. In May, Commissioner Bradley Crowell testified before Congress that the agency had lost 510 employees in the previous 16 months, while only adding 59 new staff members. 

Some of this was attributed to increased competition within the private sector, work-life balance concerns, and the government-wide buyouts initiated by the Department of Government Efficiency offered last year. 

The chairman told Callie that the agency is about 120 people below the level they expect to be at for their anticipated workload for the next fiscal year. However, that hasn’t limited staff in their ability to get work done, he said. 

“We’re not at a point where we can’t get the work done,” Nieh said. “It’s just stressing the organization a little bit more, because you have fewer people to do the work that normally you can distribute it among more people.”

Stay tuned for more from Callie’s interview with Nieh tomorrow! 

WRIGHT SAYS TRAFFIC THROUGH THE STRAIT OF HORMUZ IS RISING: Energy Secretary Chris Wright said that ship traffic through the Strait of Hormuz is “rising very meaningfully.” 

The secretary spoke at an Atlantic Council event earlier this morning, where he said oil exports out of the Strait of Hormuz are increasing and shipments will “continue to rise.” 

Shipping in the strait has been at a standstill since the war started in late February. Some vessels have been able to make their way through the waterway, but nowhere near as many as before the war. The effective halt in shipments has caused a global energy supply crunch, resulting in a rise in prices. 

Wright said oil prices have not risen more during the war because of the extra global inventories, which were “more than we thought.” 

GLOBAL OIL INVENTORIES HEADED TO MULTI-DECADE LOW: Despite Wright’s optimism, the Department of Energy’s Energy Information Administration warned today that there is still “very limited shipping traffic” through the Strait of Hormuz. 

In total, the effective closure of the waterway has caused oil production in the Middle East to drop by more than 11 million barrels per day in May, compared to levels seen before the war. In its short-term energy outlook published today, the EIA pointed out that this significant decline had led to massive draws on global inventories of crude, which will only continue. 

The EIA is forecasting that global oil stockpiles will drop by an average of 6.3 million barrels per day in the second quarter of this year, and then by 7.6 million barrels per day in the third quarter. 

As a result, inventories for OPEC members will drop to their lowest level since 2003, the EIA estimated. 

WHERE PRICES STAND: Despite lower inventories and the extended production outages, oil prices continued to extend their losses today. This is a signal that traders are still confident that the U.S. and Iran will come to a ceasefire agreement in the coming days. 

Around 2:30 p.m. EDT, international benchmark Brent crude was down 2.59% and selling at $91.81 a barrel. West Texas Intermediate had also dipped 3.10% and was priced at $88.47 a barrel. 

The EIA has said it expects Brent to average around $105 a barrel in June and July. The agency doesn’t expect prices to fall to an average of below $80 a barrel until 2027, once normal flows through the Strait of Hormuz resume. 

WHAT’S HOLDING UP PERMITTING REFORM IN THE SENATE: All eyes are on the Senate, as it has been roughly six months since the House passed legislation aimed at overhauling the federal permitting reform process and the upper chamber has yet to release any formal text. 

A new Politico report from Daily on Energy alum Josh Siegel reveals that negotiations in the Senate have been getting stuck due to a push from Senate Energy and Natural Resources Chair Mike Lee to overhaul the National Historic Preservation Act (NHPA). 

The Utah Republican has claimed that this law – meant to protect tribal lands and historic sites – has led to lengthy delays and bottlenecks for energy projects, as it requires agencies to consider how projects and actions that need federal approval affect historical and cultural resources. 

Lee is reportedly advocating for narrowing judicial review of NHPA, by imposing restrictions on lawsuits against projects related to the landmark law. 

As happened in discussions around the National Environmental Protection Act, there appears to be recognition among Democrats that NHPA is causing delays for renewable energy projects as well. 

“There are some examples where it [NHPA] has been very challenging [for energy project developers], and so it’s like, how do you find that balance of where you preserve the intent, but make things more predictable and efficient?” Energy and Natural Resources Ranking Member Martin Heinrich told the outlet. 

The party still has concerns, however, over how certain reforms could undermine the law entirely or even limit the participation of tribal nations. 

BYD SAYS THE MAJORITY OF CHINA CAR SALES WILL BE ELECTRIC: Chinese electric vehicle company BYD predicts that nearly 80% of car sales in China will be electric.

BYD’s Executive Vice President Stella Li told CNBC that, “With all the innovation technology introduced to the market, China’s market very quickly will push to … close to 80% in EV penetration.” 

China has dominated the global EV market, with BYD global sales surpassing those of Tesla. CNBC said that electric vehicles in China accounted for more than half of all new passenger car sales in 2024 and reached a record 62.9% of sales last month. 

Tariffs have restricted the sales of Chinese electric cars in the U.S. Earlier this week, the Pentagon placed BYD on a list of Chinese military-affiliated companies. 

ICYMI – JUDGE STRUCK DOWN TRUMP’S EFFORT TO RESTRICT CLEAN ENERGY CREDITS: A federal court over the weekend ruled against the Trump administration’s effort to restrict solar and wind tax credits, The Hill reported. 

The U.S. District Court for the District of Columbia vacated guidance issued by the Treasury Department last summer that would have barred wind and solar projects from qualifying for certain tax credits by demonstrating they have spent at least 5% of the total project cost. 

D.C. federal judge Colleen Kollar-Kotelly wrote that it was arbitrary and capricious to exclude projects that have incurred 5% of their costs. 

“The Notice’s elimination of the Five Percent Safe Harbor is a significant change in the IRS’s position on what it means to ‘begin construction’ for purposes of clean energy tax credits,” she wrote. 

Trump’s One Big Beautiful Bill Act phased out tax credits for solar and wind, requiring projects to start construction before July 5 or be placed in service before 2028 to obtain credits. 

Despite the ruling, Kollar-Kotelly noted that significant uncertainty remains for those in the renewable energy space. She added that market participants will need to wait for the outcome of an appeal to determine the legal effect of the IRS guidance. 

RUNDOWN 

The Guardian This US neighborhood is full of hazardous air pollution. Can a network of sensors make ‘the invisible visible’?

Vox There’s a new threat to the World Cup. FIFA might not be ready.

Reuters Climate cost of expanded World Cup under scrutiny as emissions set to soar