WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! With some help from our editor Joe Lawler, today’s edition of Daily on Energy takes a closer look at the energy and water spending bill passed in the House this morning, in which nuclear came out as a big winner.
Turning to the private sector, advanced nuclear developer Oklo is moving to build the first privately funded facility to recycle used nuclear fuel.
Plus, keep reading to find out who the federal government says is to blame for the deadly Eaton fire from this past January.
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.
HOUSE NARROWLY PASSES SPENDING BILL BOOSTING NUCLEAR: The House of Representatives voted in favor of its third out of 12 appropriations bills ahead of the spending deadline, earmarking billions for nuclear technology.
The vote: The House advanced the FY26 Energy and Water Bill in a 214-213 vote. Four Republicans – Rep. Brian Fitzpatrick of Pennsylvania, Rep. Thomas Massie of Kentucky, Rep. Tom McClintock of California, and Rep. Scott Perry of Pennsylvania – voted against the spending bill.
After the vote, Perry told The Hill that he believed the bill was “pretty lacking,” and described it as a “just a weak effort.”
The funding: The legislation provides around $57.3 billion for the Department of Energy, Department of Interior, Army Corps of Engineers, and multiple independent agencies, including the Nuclear Regulatory Commission. This is roughly $766.4 million less than current spending levels, and would mean cuts to the Office of Clean Energy Demonstrations, DOE’s Office of Energy Justice and Equity, and DOE’s Office of Energy Efficiency and Renewable Energy, which would see its budget reduced by half.
The spending bill does increase funding for a number of Trump administration priorities, including supporting nuclear weapons development and advancing nuclear energy technologies. It also increases funding for Indian Energy Policy and Programs within the Energy Department, to promote tribal energy development.
What’s next: The bill now heads to the Senate for consideration. The Senate Appropriations committee has yet to release its own Energy and Water spending legislation. Congress is racing to avoid a government shutdown at the end of this month, as government funding is set to expire on Sept. 30. The House still has nine appropriations bills it must consider and pass. These bills, which cut a number of Democratic priorities, face an uphill battle in the Senate as Republicans need Democratic support to pass them in the upper chamber.
OKLO TO BUILD NUCLEAR FUEL RECYCLING FACILITY: Advanced nuclear developer Oklo is moving to solve the nuclear fuel supply chain problem by building its own fuel recycling facility.
The details: Oklo, which has grown to be a major player in the small modular reactor sector, announced this afternoon that it will be designing, building, and operating the recycling facility in Tennessee. It is poised to be the first of its kind on U.S. soil.
Oklo said it has already completed a licensing project for the facility with the Nuclear Regulatory Commission, and is in the pre-application stage for bringing it into operation. The company plans to have it producing metal fuel for its SMRs by the early 2030s.
The project is expected to create more than 800 jobs and will be supported by the Tennessee Valley Authority, which is also considering recycling its own used fuel from its new nuclear facilities.
There are more than 94,000 metric tons of used nuclear fuel stored at power plants nationwide that could be recycled, the company said, and doing so will unlock the energy equivalent of around 1.3 trillion barrels of oil.
Key quote: “Fuel is the most important factor in bringing advanced nuclear energy to market,” Jacob DeWitte, Oklo co-founder and CEO, said. “By recycling used fuel at scale, we are turning waste into gigawatts, reducing costs, and establishing a secure U.S. supply chain that will support the deployment of clean, reliable, and affordable power. Tennessee is showing the nation that recycling can be done to support new nuclear development and growth.”
SENATE FOCUSES ON FERC: President Donald Trump’s two nominees to complete the Federal Energy Regulatory Commission testified before Congress, as lawmakers honed in on the agency’s independence and commitment to not discriminate against certain energy sources.
The details: Nominees Laura Swett and David LaCerte appeared before the Senate Energy and Natural Resources committee this morning. If confirmed, the two would round out the independent agency and shift its political balance to a Republican majority of 3-2. While this could likely result in less pushback from the White House, there are concerns over overreach. Democrats on the committee sought to ascertain whether both Swett and LaCerte would advocate for the agency’s independence if confirmed. Both nominees defended FERC’s independent status, pointing to the authorities granted by Congress.
“In the DOE Organization Act of 1978, Congress carved work out of DOE’s jurisdiction, and explicitly provides that no FERC action is under review by anyone at DOE,” Swett said. “I will always go back to the statute…and I will not exceed the jurisdiction that Congress has given the agency.”
As the Trump administration has made it clear it will be favoring fossil fuel energy resources over renewable alternatives, Democrats on the committee also pressed the nominees on whether they would do the same. While they did not give a yes or no answer on the matter, Swett and LaCerte both referred to the Federal Power Act, which requires commissioners to be neutral.
Confidence on the Left: During the hearing, Swett told lawmakers a number of times that she had “not looked into” some key energy metrics relating to the grid ahead of the hearing, including battery components and the cheapest form of electricity generation.
Democratic Sen. Angus King from Maine told Callie he was somewhat surprised by this response from Swett, but affirmed that he was confident she is qualified and prepared to take on a role at FERC.
“I think she knows how FERC works, and I think she can certainly access the data. I don’t – I was a little surprised, because energy is the business that she’s in, and the data on costs and availability of energy sources is pretty widely available,” King said. “I don’t think it’s disqualifying. Somewhat surprising.”
RELATED…ENERGY TRADE GROUPS URGE SENATORS TO ADVANCE NOMINATIONS: More than a dozen energy and manufacturing trade organizations are urging the ENR committee to swiftly approve Swett and LeCerte’s nominations in order to accelerate the build-out of natural gas infrastructure.
In a letter sent to the committee yesterday, trade groups including the Independent Petroleum Association of America, American Petroleum Institute, American Clean Power Association, and National Association of Manufacturers, highlighted the importance of having a complete commission.
“At present, FERC is operating with three commissioners, the minimum to sustain a quorum,” the letter reads. “A loss of quorum would eliminate the agency’s ability to approve construction of new LNG terminals and natural gas pipelines, issue new and original licenses for non-federal hydropower, and assess major electricity market rule changes proposed by the nation’s regional grid operators or perform other key functions.”
If FERC were to lose quorum, whether due to another dismissal from the president or an early retirement, the trade groups warned that it would further delay necessary reforms to the electric grid and freeze economic growth.
HOUSE GOP MOVES TO UNDO BIDEN-ERA LAND MANAGEMENT RULES: Late last night, members of the House voted in favor of walking back the Biden administration’s land management plan for Montana, North Dakota, and Alaska.
The details: Lawmakers voted on three measures disapproving of former President Joe Biden‘s Resource Management Plan Amendments for these states, which outline plans for managing certain public lands while also maximizing resource development. Republicans claimed Biden’s RMP for these lands substantially limited or completely blocked fossil fuel and mining production.
In a 211-208 vote, Republicans advanced a measure reversing the BLM RMP Amendment in Miles City, Montana, which determined that more than 1.7 million acres was unavailable for leasing to lower greenhouse gas emissions.
The second measure passed, in a 215-211 vote, repealed a Biden BLM ruling for North Dakota that limited development of fossil fuels to areas within 4 miles of existing mines.
The third and final measure passed in a 215-210 vote, reversing the Biden administration’s restriction of pipeline, oil and gas development on around 13.3 million acres of land in the Central Yukon region of Alaska.
Read more from Maydeen here.
GOVERNMENT ACCUSES CALIFORNIA UTILITY OF SPARKING COSTLY JANUARY FIRE: The Department of Justice has filed two lawsuits against Southern California Edison, accusing the utility company of sparking two major wildfires, including the January Eaton Fire.
The details: The DOJ is seeking $77 million in damages and has accused Southern California Edison of negligence in both the Eaton Fire and the 2022 Fairview Fire, Reuters reported. In the lawsuit regarding the Eaton Fire, the federal government claims a faulty power infrastructure controlled by the company, or sparks from the infrastructure, caused the costly fire, which killed 31 people. The second suit claims that a sagging power line owned by Southern California Edison sparked the 2022 fire, which burned nearly 14,000 acres.
“But for Edison’s negligence, these fires would not have started,” Bill Essayli, acting U.S. attorney in Los Angeles, said today. “Fire season is coming up again. We want Edison to change the way it does business.”
The lawsuits claim the utility knew that high winds could start fires in the region, and opted against upgrading equipment despite the risks, Reuters reported.
BELEAGUERED ORSTED SUES TRUMP ADMINISTRATION OVER BLOCKED WIND FARM: The Danish wind giant Orsted has sued the Trump administration for blocking its Revolution Wind project off the coast of Rhode Island.
Specifically, Orsted and Global Infrastructure Partners, its partner in the project, asked the federal court in Washington, D.C., for an emergency order to allow it to finish the project, which is 80% completed, Bloomberg reports. Rhode Island and Connecticut also sued.
The background: Trump has ramped up his efforts to prevent the construction of wind turbines in recent days. As we noted yesterday, he’s enlisted a number of agencies in the effort, including the Department of Health and Human Services and the Department of Defense.
Trump’s efforts are a major threat to wind producers. Orsted’s stock is down by more than a third this year, in large part thanks to the Trump administration’s actions.
NEWS FROM THE PETROSTATE OF GUYANA: Guyanese President Irfaan Ali has claimed a second term, the BBC reports, even as vote-counting continues.
Ali campaigned on improving infrastructure and reducing poverty using the vast oil reserves that, since being discovered by Exxon Mobil in 2019, have put the South American nation on course to be a petrostate and perhaps one of the wealthiest countries in the world.
The other issue looming over the campaign was conflict with Venezuela, which has been in a territorial dispute with Guyana over the oil-rich Essequibo region.
ICYMI – CALIFORNIA TO ALLOW SALE OF HIGHER-ETHANOL GAS: In an effort to lower gas prices, California lawmakers voted yesterday in favor of selling E15 gasoline, a blend with 15% ethanol.
The bill, which now heads to Gov. Gavin Newsom’s desk for signing, would immediately legalize the sale of the higher-ethanol blend. California is the only state that has moved to ban sales of the fuel. Passage of the bill was quickly celebrated by the gasoline industry.
“Many other states have already seen the benefits of E15—healthier air, better engine performance, and cost savings at the pump,” Geoff Cooper, president and CEO of the Renewable Fuels Association said. “Now, California drivers are on the cusp of experiencing those same advantages, and we urge Gov. Newsom to sign the bill into law as quickly as possible. E15 will provide relief at the pump for Californians who continue to face the highest gas prices in the country.”
Some background: The move comes several months after the Environmental Protection Agency said it would be issuing nationwide emergency waivers allowing the sale of E15 gasoline for the summer driving season. Trump had, through executive order, directed the EPA to consider issuing emergency waivers regarding sales of the fuel. The EPA issued its most recent waiver permitting the sale on Aug. 27. It is expected to remain in place through Sept. 15.
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