IN CASE YOU FORGOT: Neither Sen. Ted Cruz nor Rep. Cathy McMorris Rodgers are budging in their disagreement over provisions that were stripped from the National Defense Authorization Act and a bill banning the import of Russian uranium – signaling a stalemate on two significant bills.
If you’ll recall: The ranking member of the Senate Commerce Committee objected to a bill from Rodgers that would ban all imports of enriched uranium produced in Russia back in December, over his amendments that were stripped from the NDAA. One amendment, introduced with Democratic Sen. Mark Kelly of Arizona, would exempt projects funded by the 2022 CHIPS Act from environmental permitting reviews. Another amendment, introduced with Democratic Sen. Maria Cantwell of Washington, would require manufacturers of smart devices equipped with a camera or microphone to disclose that information to consumers before a purchase.
The semiconductor permitting bill was axed in the finalized version of the NDAA, with Speaker Mike Johnson supporting individual committee chairs in axing the provision, even though it had bipartisan support. Rodgers is looking to make strides on broader permitting reform, and did not want to give out a carveout for CHIPS-funded projects. The smart devices bill was blocked by House Democratic leadership.
Until these provisions are passed by the lower chamber, Cruz said, the uranium bill – along with other priorities from the House Energy and Commerce Committee – would not pass the Senate.
Last week, we caught up with Rodgers to get her reaction to Cruz objecting to her bill. Here’s what she had to say:
“They don’t need legislation – it’s an exemption to NEPA,” Rodgers told the Washington Examiner. “It’s an exemption that the administration can grant.”
Interpretations of NEPA: According to a Senate Republican aide, Rodgers is suggesting that NEPA amendments within last year’s debt limit deal could be used as a “springboard” to help grant exemptions to the semiconductor plant projects – therefore, it’s not necessary to pass the semiconductor permitting bill through the House. (It passed by unanimous consent in the Senate in December.) However, it’s unlikely that the White House will interpret the language to grant the exemptions, the aide told us, as it could subject the projects to legal liability.
When we caught up with Kelly on Thursday last week, the Arizona Democrat said he hasn’t spoken to any members of the House on the issue since December, but mentioned he’s been working closely with officials to get the provision passed, such as Secretary of Commerce Gina Raimondo and the White House.
“It’s rather frustrating that something we were able to do by [unanimous consent] here, we could not get across the finish line on the other side of the building,” he said.
In a brief interview on the same day, Cruz told Nancy that “negotiations are ongoing.”
So, what does that leave us with? It doesn’t sound like either side is budging. A House Republican aide told the Washington Examiner that the congresswoman does not view the uranium bill and the semiconductor permitting reform bill as equal. The uranium bill, which was passed by voice vote in the House and was expected to be voted through the Senate by unanimous consent, has a greater level of support than the Kelly and Cruz permitting bill – which had “bipartisan concern,” according to Rodgers.
Now, why does this matter? Without these permitting exemptions, projects that are federally funded by the 2022 CHIPS Act – a bill that provided billions to fund research and domestic manufacturing of semiconductors – face significant delays. That could significantly hurt the Biden administration’s goal of shoring up domestic capacity of manufacturing semiconductors to compete with adversaries – namely, China.
Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writers Breanne Deppisch (@breanne_dep) and Nancy Vu (@NancyVu99). Email bdeppisch@washingtonexaminer dot com or nancy.vu@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.
SUNOCO TO ACQUIRE NUSTAR ENERGY FOR $7.3B: Sunoco will acquire fuels storage and pipeline operator NuStar Energy in another big energy merger, valued at about $7.3 billion including debt, Reuters reports – a move that will help Sunoco diversify its business portfolio to expand past the distribution of motor fuels.
The deal – which has been approved by the two companies’ boards – will grant Sunoco access to NuStar’s energy infrastructure, which consists of about 9,500 miles of pipeline and 63 terminals of storage facilities.
NuStar said its shareholders will receive 0.4 Sunoco shares for each of their shares, for a premium of 24%. Sunoco is also expecting to complete the deal by the second quarter, according to the press release. Read more on that here.
EDF TAKES THREE NUCLEAR UNITS OFF GRID: French utility company Electricite de France SA announced it would be taking three UK nuclear units offline for an inspection of steam valves after an issue was found at one of the plants last month, Bloomberg reports.
What this means: The move will result in about 2.4 gigawatts being taken offline since three units in total will not be producing power. EDF said the work would take “a few weeks.”
This could spell trouble for the UK’s grid, as high winds and low temperatures create stronger energy demands. According to grid data reported by Bloomberg, below-zero temperatures created high demand for gas last week, with stations powering around 60% of the grid at times. More on that here.
POST-PRICE-CAP RUSSIA BECOMES TOP OIL SUPPLIER TO CHINA: Russia sold 107 million barrels of crude oil to China last year, an increase of about a quarter and enough to eclipse Saudi Arabia as the no. 1 exporter to China, Bloomberg reports.
Bloomberg also calculated that the oil was sold for an average of $77 a barrel – meaning that Russia was earning revenues well above the $60 a barrel price cap imposed by the U.S. and allies. China is not part of the price cap coalition, but part of the argument for the cap has been that it would allow non-coalition members to negotiate steeper discounts and thus hurt Russia’s finances that way. But Russia’s ability to increase sales to China, India, and other countries has raised doubts about the cap’s success and put pressure on the coalition this year to step up enforcement efforts.
GAS PRICE UPDATE: Average gas prices fell to the lowest level yesterday since 2021 and could cross the $3 barrier before seasonal increases kick in, according to GasBuddy expert Patrick De Haan. The decrease is partly a reflection of the hit to demand from the cold weather that has kept many people indoors.
Higher gas prices, of course, have bedeviled President Joe Biden throughout his presidency (prices were closer to $2.30 when he came into office and spiked after Russia’s invasion of Ukraine). Moderating gas prices, to go along with broader inflation drifting down, would be expected to aid his reelection efforts.
EXXON MOBIL SUES AGAINST INVESTORS’ CLIMATE PROPOSAL: Exxon Mobil is suing U.S. and Dutch activist investors to prevent them from filing climate proposals during its annual shareholder meetings, according to a complaint filed Sunday – the latest advance in a intensifying battle between fossil fuel companies and environmental advocates.
The lawsuit was filed in the U.S. District Court for the Northern District of Texas against investment firm Arjuna Capital, and Follow This, an Amsterdam-based investor group.
“The breakdown of the shareholder proposal process, one that allows proponents to advance their agendas through a flood of proposals, does not serve the interests of investors,” Exxon said in an email to CNBC. “We are simply asking the court to apply the SEC’s proxy rules as written to stop this abuse and eliminate the significant resources required to address them.”
This is the first time the oil major has worked to exclude a shareholder proposal through the courts. Exxon had stated that investors are driven by “an extreme agenda,” and that their proposals do not serve investors’ interests.
Follow This and Arjuna Capital filed a climate resolution for the oil major’s upcoming annual meeting. The two groups have demanded oil companies establish targets for Scope 3 emissions, which would include those generated in the use of the oil and gas produced by Exxon. Read more on that here.
RUNDOWN
Financial Times The US plan to break Russia’s grip on nuclear fuel
E&E News Anti-wind rhetoric dominates GOP beach-side ‘hearing’
Bloomberg The World’s Largest Cruise Ship Is a Climate Liability
