WHAT’S HAPPENING TODAY: Good afternoon and happy Wednesday, readers! Democrats broadly swept yesterday’s elections, securing governorships in Virginia and New Jersey. In today’s edition of Daily on Energy, we’re taking a closer look at how energy and electricity prices came into play at the ballot box.
Yesterday, the Trump administration was handed a major win in its crackdown on offshore wind, with a federal judge allowing the Interior Department to reconsider a federal permit issued in the final days of the Biden administration.
Plus, new analysis suggests that the controversial Constitution Pipeline in New York could have major savings for New England consumers. Keep reading to find out just how much the natural gas project could save.
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.
ENERGY COSTS DRIVE NEW JERSEY AND VIRGINIA GOVERNOR RACES: Democrats won election races across the country yesterday, including gubernatorial races in Virginia and New Jersey, where energy costs played a key role in voters’ choices.
In Virginia, former Democratic congresswoman Abigail Spanberger defeated Republican Lt. Gov. Winsome Earle-Sears in the governor’s race. Then, in New Jersey, Democratic Rep. Mikie Sherrill of New Jersey defeated Republican Jack Ciattarelli, a former state assemblyman and Trump ally, who was making his third run for governor.
Both Spanberger and Sherrill vowed to lower energy costs for the residents in their states. Spanberger proposed increasing generation, ensuring data centers don’t impose high costs, utilizing energy efficiency, and addressing regulations that slow down key energy projects.
Sherrill said she would declare a “State of Emergency on Utility Cost,” where she would freeze utility rates and demand grid operators, such as PJM, to reduce prices.
According to exit polls, about 87% of respondents in New Jersey said that electricity costs are a problem where they live. In both gubernatorial races, the most critical issue for voters was the economy and affordability.
The gubernatorial elections took place as households are facing high energy costs, with experts forecasting that prices will continue to rise.
What they are saying: Advanced Energy United President and CEO Heather O’Neill said in a statement that, “The results of both Governors races reflect that leaders who embrace clean energy as a path to lower bills, reliable power, and economic growth are being rewarded at the ballot box.”
Steve Milloy, senior fellow at the Energy & Environment Legal Institute and former Trump EPA transition team member, said in a statement that “Democrat wins in New Jersey and Virginia governors’ races mean that electricity prices will continue to spiral upwards thanks to funding from the ongoing Green New Scam.”
TRUMP HANDED WIN IN OFFSHORE WIND CRACKDOWN: A federal judge has ruled in favor of the Trump administration and its efforts to walk back permits for offshore wind projects, allowing the Interior Department to review and reconsider its approval of the SouthCoast Wind Project in Massachusetts.
The details: The administration first signaled in September that it would reconsider the permit, claiming that the Environmental Impact Statement issued may have “understated or obfuscated impacts” that possibly would result in the project breaking the law.
Washington, D.C., district court judge Tanya Chutkan ruled in favor of President Donald Trump yesterday, saying that the project developers would not suffer from “immediate and significant hardship” if the administration was allowed to reconsider the approvals.
Remember: The SouthCoast Wind Project received its permit in the final days of the Biden administration. The offshore wind farm is expected to be made up of 141 wind turbines that would generate 2.4 gigawatts of power. It is also facing backlash from the town of Nantucket, which sued to block construction in March.
Read more from Callie here.
INCOMING COLD SNAP: Those living in the central and eastern United States will be hit with a significant drop in temperature starting this weekend that could bring snow in some parts of the region.
This weekend, cold air will make its way across the Plains and Midwest, bringing winter-like conditions. The cold air will increase the chance of snow across the Midwest and the Appalachians. For instance, several hours of snow are possible in Marquette, Michigan, starting Sunday into Monday, Accuweather said.
AccuWeather Lead Long-Range Meteorologist Paul Pastelok said “Temperatures will feel more like mid-December or even Christmastime in many places by next week.”
NEW YORK PIPELINE COULD SAVE NEW ENGLAND OVER $11B: New analysis from S&P Global’s Commodity Insights and Market Intelligence divisions has found that the controversial Constitution Pipeline could have major savings for consumers if the Trump administration is successful in reviving the project.
The details: The report, published yesterday, found that the natural gas pipeline would generate up to $11.6 billion in energy savings and support nearly 2,000 jobs annually over a 15-year period. It could also stimulate up to $4.4 billion in additional gross state product in Connecticut, Massachusetts, New York, and Rhode Island, as well as $432 million in tax revenues, the report found.
S&P Global estimated that, if constructed, the Constitution Pipeline would also reduce local gas prices by up to $6 during peak demand months.
Quick reminder: The Constitution Pipeline was set to be a 125-mile natural gas pipeline that would deliver natural gas from Pennsylvania to New York and New England. It first received federal approval in 2014, but was later blocked by former Gov. Andrew Cuomo through the Clean Water Act and ultimately canceled in 2020.
Trump has pushed for the project to pick back up, along with another natural gas project known as the Northeast Supply Enhancement. White House officials have claimed that Gov. Kathy Hochul made a deal with Trump earlier this year to allow these pipelines to move forward in exchange for the administration lifting its stop work order on a fully permitted offshore wind farm off the coast of New York.
Pipeline developer Williams Companies confirmed in May that it is in talks with state officials, as well as state and federal regulators, to restart the pipeline projects.
POLAND SEEKING TO BUY MORE U.S. LNG: Poland is reportedly looking into purchasing more liquefied natural gas from the U.S., which would then be sent to Ukraine and Slovakia.
The details: Two sources familiar with negotiations confirmed to Reuters today that the agreement would strengthen the European Union’s supply of American energy, making it easier to reduce imports from Russia.
A joint declaration between the EU and U.S. on energy imports is expected later in the week, with discussions on terms involving Slovakia following close behind, one of the sources said.
The deal, which is still being negotiated, could involve sending as much as 5 billion cubic meters of gas annually to the south of Poland, before transferring to Slovakia. Currently, Slovakia consumes between 4 and 5 billion cubic meters of gas each year.
Key quote: “We hadn’t fully seized this historic opening that we have to get Europe off Russian energy and onto American, but now this administration is going full throttle and there’s a real shift,” one U.S. official told the outlet. “This could seal the deal, we could see a seismic change in how Europe gets its energy.”
EU WEAKENS CLIMATE GOALS AHEAD OF COP30: The European Union climate ministers agreed to cut emissions 90% by 2040, from 1990 levels, with some flexibility, the Wall Street Journal reports.
As part of the agreement, ministers would allow countries to purchase foreign carbon credits to cover up to 5% of the 90% emissions reduction goal, which would lower the overall target to 85%. It is a weaker version of the plan created by the European Commission that would have allowed for countries to buy foreign carbon credits to cover up to 3% of emission reductions.
The agreement comes ahead of the United Nations climate summit, or COP30, in Brazil, where governments will submit their climate target plans for 2035. The countries also agreed to cut emissions between 66.25-72.5% by 2035.
ICYMI – CONGRESS ALSO SKIPPING OUT ON CLIMATE CONFERENCE: A bipartisan group of senators was planning to attend COP30 next week, but those plans have reportedly been ruined by the government shutdown.
Spokespeople for Utah Republican Sen. John Curtis and Delaware Democrat Sen. Chris Coons confirmed with E&E News this week that the delegation will no longer be headed to Brazil in the coming days.
“Senator Curtis has long believed that America’s energy future must be affordable, reliable, and clean. In the past, he has attended global conferences to ensure that conservative solutions are not only part of the conversation—but leading it,” Curtis spokesperson Adam Cloch told the outlet. “While this shutdown has temporarily grounded travel, it won’t stop the Senator from continuing to advocate for practical, principled energy policy at home and abroad.”
Curtis was the only confirmed Republican lawmaker traveling to Brazil for the climate change conference, but he told E&E News in October at least three other GOP senators expressed interest in attending.
The canceled congressional trip further underscores the U.S.’ absence from the climate conference. The White House confirmed with Daily on Energy earlier this week that the administration will not be sending “any high level representatives” to COP30 next week.
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