Daily on Energy, presented by TC Energy: Alaska drilling, permitting update, and DOE building emission standards

In other news, the Energy Department has ended the Biden administration’s guidelines for existing and new buildings to reduce carbon emissions. Keep reading to learn about the latest update on permitting reform 📃. 

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.

REPUBLICANS HELP OPEN UP ALASKA FOR DRILLING: It is getting easier and easier for the Trump administration to boost oil and gas drilling in Alaska’s North Slope, as Senate Republicans voted to rescind Biden administration environmental protections for the Arctic National Wildlife Refuge. 

The details: In a 49-45 vote, the Senate approved a joint resolution of congressional disapproval undoing the Department of Interior’s Bureau of Land Management’s restrictions on oil and gas leasing in the refuge issued late last year. The resolution specifically nullifies a rule issued by BLM related to its record of decision for the agency’s program that leases and develops oil and gas resources in and from the Coastal Plain. 

The Biden rule replaced a similar record of decision issued under President Donald Trump’s first presidency, which made all approximately 1.6 million acres of the region available for drilling activities. The Biden administration dramatically cut the amount of acreage available, blocking leasing on roughly 1.2 million acres. 

The resolution passed in the House last month and now heads to the president’s desk to be signed into law. 

Some background: Congress first authorized drilling in the wildlife refuge in 2017, though little movement has been seen since. During his first administration, Trump approved nine lease sales in the region. The Biden administration ultimately suspended seven of these, while two were canceled by bidding companies. 

There is currently no drilling activity in the Coastal Plain, though one lease sale was held under the Biden administration in January. The auction received zero bids. 

Read more from Callie here. 

RELATED…ALASKAN SENATORS PUSH BACK ON PROPOSED DRILLING IN ARCTIC WATERS: Republican Sens. Dan Sullivan and Lisa Murkowski are breaking with the Trump administration, asking the Interior Department to reconsider its proposal to hold offshore oil and gas lease sales in the High Arctic. 

Quick reminder: Last month, Interior released a five-year management plan for oil and gas development, proposing a lease sale in nearly every planning area off the coast of Alaska including in the southern Gulf of Alaska, northern Beaufort Sea, and Arctic waters. 

The pushback: Sullivan and Murkowski have voiced concerns about holding lease sales in the High Arctic, telling E&E News that they are asking the administration to instead focus on increasing drilling on the Cook Inlet, the state’s oldest producing oil and gas basin. 

“I appreciate where they’re going with putting everything on the table, but as we have seen with prior five-year lease sales, there have been recommendations that we take certain areas off the table,” Murkowski told the outlet, adding that she fully expected some areas to be taken off the management plan. 

“I’m fully expecting that we’re going to be seeing some comments that will weigh into that effect, and you’re going to see some of these areas taken off,” she added.

Sullivan told the outlet that he has already spoken with Interior Secretary Doug Burgum about the issue, and expressed his concerns about the risks to communities who depend on fishing and whaling in Arctic waters. 

HOUSE BRINGING PERMITTING REFORM BILL TO THE FLOOR IN JUST WEEKS: The House could see a vote on meaningful permitting reform in just a matter of days, as House Natural Resources committee chair Bruce Westerman has confirmed his bipartisan permitting bill will be taken up on the floor later in less than two weeks. 

The details: The Arkansas Republican confirmed to Daily on Energy alum Josh Siegel today that the Standardizing Permitting and Expediting Economic Development Act, better known as the SPEED Act, will be taken up on the House floor the week of Dec. 15. 

For months, Westerman has been aiming to hold a vote on some form of permitting reform before the end of the year to send over a package or bill to the Senate. Westerman’s bill moved out of committee late last month with one crucial amendment attached preventing the executive office from revoking permits for clean energy projects. 

With the Energy and Commerce Committee poised to have a number of permitting-related bills on the floor next week, and floor disruptions this week, Westerman told Siegel that he wants to give more notice on amendments before his bill goes to a vote. 

Quick reminder: The SPEED Act is meant to accelerate environmental reviews and approvals for energy and infrastructure projects by overhauling and simplifying the National Environmental Policy Act. 

The bill would remove requirements to consider or conduct new scientific or technical research and bar federal agencies from delaying the issuance of an environmental review document or decision on the basis of waiting for new scientific research to be released. It would also limit agencies’ ability to include downstream environmental impacts associated with projects as well as shorten the statute of limitations for legal challenges against projects subject to environmental reviews.

DOE SCRAPS ZERO-EMISSION BUILDING STANDARDS: The Department of Energy ended the Biden administration’s National Definition of a Zero Emissions Building, arguing it is no longer consistent with the current administration’s priorities. 

The National Definition of a Zero Emissions Building was set by the Biden administration last June to provide guidelines to reduce carbon emissions for existing and new construction buildings. 

But, the Trump DOE filed a notice in the Federal Register yesterday stating the definition is “not consistent with current Administration priorities, and, as a result, DOE no longer supports the definition.” 

The department’s Office of Critical Minerals and Energy Innovation announced the removal of the definition yesterday. The department said it discourages states and local government agencies from using and referencing the definition. It also removed it from its agency’s website. 

Lou Hrkman, principal deputy assistant secretary for critical minerals and energy innovation, said, “The interaction of America’s 130 million buildings with our energy system should not be further complicated by arbitrary and imprecise federal guidance.” 

The Trump administration has made a broad effort to undo regulations that support energy efficiency standards for buildings and homes, arguing they raise prices for consumers. 

US GRANTS WAIVER FOR LUKOIL STATIONS OUTSIDE RUSSIA: The Trump administration has carved out an exception to its sanctions on Russian oil firm Lukoil. 

Earlier today, the Department of Treasury’s Office of Foreign Assets Control extended a waiver for Lukoil gas stations located outside of Russia, allowing transactions at roughly 2,000 stations located throughout Europe, Asia, the Middle East, and the United States. 

The waiver has been extended through April 29, 2026, offering some relief for those worried about sudden disruptions at stations across the globe. Lukoil has roughly 200 gas stations in New Jersey, Pennsylvania, and New York. 

POLAR VORTEX ON THE MOVE: Temperatures are expected to drop in the coming week for many living in the central and eastern states.  

According to AccuWeather, a polar vortex is settling in Hudson Bay, Canada, pushing Arctic air southward from the North Pole to parts of the central and eastern United States through the middle of the month. 

The storm system is expected to bring freezing temperatures to the Dakotas, Minnesota, Iowa, Nebraska, and much of the Northeast. Temperatures began to drop this morning into the single digits, 10s, and 20s from the central and southern parts of the Plains to the Ohio Valley. 

Key quote: “This Arctic air outbreak can be attributed to a displacement of the polar vortex,” AccuWeather Lead Long-Range Meteorologist Paul Pastelok said.

“The outbreak this week will be the first of probably three such rounds with it. Another cold blast is likely next week and a third the week after that,” Pastelok said. “The waves of Arctic air will lead to significant surges in energy demands.”

ICYMI – CHINA ISSUES NEW RARE EARTH EXPORT LICENSES: China earlier this week approved of new rare earth export licenses for Chinese manufacturers, providing some relief to the auto supply chain. 

Reuters reported that Chinese magnet makers JL Mag Rare Earth, Ningbo Yunsheng, and Beijing Zhong Ke San Huan High-Tech have secured export licenses for all or some of their clients. All three companies sell to the auto industry. 

As a reminder: China throughout the year has set export restrictions on rare earths in response to the United States’ sweeping tariffs on Chinese goods. As part of those restrictions, companies are required to obtain a license from the ministry for any export. 

Why it matters: The export restrictions have caused supply chain disruptions for the domestic automotive industry, which relies heavily on Chinese materials. Trump reached an agreement with China in October to roll back the controls on five rare earths for one year. The approved licenses by China earlier this week mark a small victory for the Trump administration. 

However, the United States did not reach an agreement over the latest export controls placed in April, which suspended exports of seven types of rare earth metals and magnets.

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