Daily on Energy, presented by Americans for Fusion: Permitting push, potential critical minerals deals, and another sweep of cold

Today’s edition of Daily on Energy also continues to follow the evolving situation in Venezuela as the Trump administration prepares to take the next step that would allow U.S. companies to move in and start producing 🛢️🇻🇪. 

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.

TRUMP ADMINISTRATION PUSHES ON PERMITTING: Dozens of lawmakers, Trump administration officials as well as manufacturing and energy industry executives gathered on Capitol Hill this afternoon with one shared purpose: finding a pathway to pass permitting reform. 

The Bipartisan Policy Center hosted its long-awaited permitting summit today, in the backdrop of ongoing, yet stalled, negotiations in the Senate on meaningful legislation that would accelerate the federal permitting process for energy and infrastructure projects. 

Negotiations came to a halt in December, after the Trump administration escalated its crackdown on the offshore wind industry and paused leases for five underconstruction projects along the Atlantic coast. All five projects have been granted court-approval to resume construction, however, top Democrats in the Senate remain hesitant to advance any bipartisan legislation without commitments from the administration that renewable energy projects would be fairly treated. 

Environment and Public Works committee ranking member Sheldon Whitehouse of Rhode Island told Daily on Energy last week there had been no communication from the White House on that front. While President Donald Trump has not publicly addressed Democratic concerns, his permitting czar Emily Domenech made it clear that the administration is standing firm.

“I would say if Republicans had made President [Joe] Biden approving pipelines a condition of coming to the table for permitting reform, we would have no fiscal responsibility backed, and there would be no bills that are here today,” Domenech told Callie on the sidelines of the summit. 

With negotiations in flux, Domenech explained that the administration would not be “waiting around” for Congress to pass a bill and do everything in its power to accelerate the process through the federal Permitting Council, which she leads. 

“This administration is using every tool in the toolbox, from updating outdated regs to utilizing nationwide permits and categorical exclusions where they’re appropriate, to empowering the Permitting Council…to move permits faster and get more infrastructure built,” she said in remarks during the summit. 

Optimism in the House: While much of the debate on permitting reform remains centered in the Senate right now, the lower chamber has continued to advance discussions with new legislation. 

Just this morning, California Democratic Reps. Josh Harder and Adam Gray teamed up with Republican Reps. Mike Lawler of New York, Don Bacon of Nebraska and Chuck Edwards of North Carolina to introduce the “FREEDOM Act.” You can read more about this bill from Heatmap here. 

Several members of the House, including Democrats, have also expressed their optimism on Congress reaching a bipartisan agreement and passing reforms this year. 

“The stars are aligned,” California Rep. Scott Peters said this afternoon. 

EU SEEKS TO PARTNER WITH U.S. ON CRITICAL MINERALS: The European Union looks to partner with the U.S. to curb China’s dominance in the critical mineral sector. 

Bloomberg reports that the EU is prepared to sign a memorandum of understanding with the U.S. to develop a “Strategic Partnership Roadmap” within three months. The partnership will look at ways to secure a critical minerals supply outside China, as both the U.S. and the EU have relied heavily on Beijing for supply and processing. 

People familiar with the matter told Bloomberg that the memorandum suggests the two will consider joint critical mineral projects, price-support mechanisms, and recommendations to avoid market manipulation. The EU also proposes that both sides respect each other’s territorial integrity. 

The EU’s proposal follows the Trump administration’s push to purchase Greenland for national security purposes. 

The State Department push: The potential MOU between the U.S. and the EU comes as the State Department will host over 50 countries tomorrow for its critical mineral ministerial. The ministerial will undergo talks aimed at reducing reliance on Chinese critical minerals through agreements with allied nations. 

While at the Center for Strategic and International Studies earlier today, Interior Secretary Doug Burgum said the U.S. this week will seek more bilateral agreements with countries to diversify the supply chain.

“We have plans to announce as many as 11 more of those agreements this week…we know that there is strong interest from another 20 countries coming behind that,” Burgum said. 

He added that the concept of the bilateral agreements would include tariff-free trade regarding rare earth and critical minerals, noting that some previous agreements have included price floors. The U.S. has already signed agreements with countries like Australia and Japan. 

“If you have someone who’s dominant, who can flood a market with a particular material, they have the ability to essentially destroy the economic value of a company or a country’s production,” Burgum said. 

China has used its dominance in the global supply chain for critical minerals as leverage against the U.S. and other countries by imposing export restrictions on its materials.

DRILL, BABY, DRILL…IN VENEZUELA: The Trump administration is preparing to take the next steps necessary to increase oil production in Venezuela, in issuing a general license that would allow companies to pump the heavy crude. 

The details: Sources familiar with the matter told Bloomberg that the general license could be issued as soon as this week, in order to incentivize U.S. based companies, and other firms with ties to the U.S. to quickly move back into the country. 

The license, which would be issued by the Treasury Department, is a part of the Trump administration’s broader effort to ease sanctions and revitalize the country’s oil industry. Just last week, the Treasury issued a general license allowing for the “lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan origin oil, including the refining of such oil.”

UTILITY PLEADS WITH TRUMP TO ALLOW COAL PLANT CLOSURE: As the Trump administration looks to revitalize the coal industry by keeping aging power plants open, some utilities are now pushing back against the effort. 

The details: Cooperative utilities Tri-State Generation and Transmission Association and Platte River Power Authority have filed a petition requesting that the Department of Energy reconsider its emergency order demanding that their jointly owned coal plant in Colorado – the Craig Generating Station’s Unit 1 – remain operational for an additional 90 days. The order was issued in December in an effort to support electricity shortages in the Northwest region through the end of March. 

The utilities had been planning to close the facility’s unit one generator on Dec. 31 and shutter the remaining two by 2028, in compliance with the state of Colorado’s goals to shut down all coal generation by 2030. 

Analysts have estimated that keeping the unit open for 90 additional days will cost the utilities at least $20 million – with costs ballooning to as much at $150 million if its life is extended one year. Both utilities have argued that the Energy Department’s December must-run order failed to adequately consider the costs of keeping the unit running and failed to ensure compensation for the costs of compliance with the order. 

Key quote: “We support the U.S. Department of Energy’s efforts to ensure the western United States maintains a reliable supply of electricity to meet growing demand and emergencies, and we do not take this request for a rehearing lightly, but as not-for-profit entities, we face issues that other utilities do not, because it is our members that ultimately are going to pay for the cost of this order,” Tri-State CEO Duane Highley said in a press release last week.  

CHINA TO BAN HIDDEN DOOR HANDLES ON CARS: Starting next year, China will prohibit hidden door handles on cars, which are commonly seen on Tesla electric vehicles.

NBC News reports that China’s Ministry of Industry and Information Technology said that all vehicles must include a mechanical release function for handles. The ministry cited safety concerns following EV accidents in which passengers were trapped in cars. 

The new ban will take effect in January 2027, and for models that have already been approved, will have until January 2029 to make design changes. Tesla vehicles, like the Model Y and Model 3, and other Chinese models include hidden door handles.

POLAR VORTEX TO HIT EASTERN STATES: Eastern states will face frigid temperatures for much of February due to a polar vortex pushing cold air into the region. 

The ongoing polar vortex could bring snow and ice to several areas in the coming weeks, including the Plains, the Mississippi Valley, the Appalachians, and the Atlantic Seaboard, according to AccuWeather. 

“Subsequent blasts of air that occur during the first seven to 10 days of February may not be quite as extreme,” AccuWeather Lead Long-Range Meteorologist Paul Pastelok said. 

“However, because the ongoing cold has led to a rapid increase in ice cover on the Great Lakes, the modifying effect of the shrinking open water is progressively being reduced,” Pastelok said. 

AccuWeather said there will be a few days with warmer temperatures, but they will likely only be brief. The frigid temperatures that began last month will likely keep temperatures below the historical February average. 

ICYMI – NEWSOM PROPOSES EV INCENTIVE BILL: California Democrat Gov. Gavin Newsom released a trailer bill detailing the state’s plan for a $200 million electric vehicle incentive program. 

The incentive program is an effort by California to offset the terminated federal EV incentives. Republican’s One Big Beautiful Bill Act ended the Inflation Reduction Act EV tax credits for those looking to buy new and used electric vehicles. Now, California is looking to fill that void and boost the EV market in the state. 

The proposed legislation: According to the California Air Resources Board (CARB) participating automakers will implement the program through grant agreements with the agency and match the state’s incentives. CARB said the incentives, available at the point of sale, will include the sale or lease of new or used light-duty passenger zero-emission vehicles (ZEVs) to first-time ZEV buyers. 

The amounts of the incentives will be set by CARB, which will conduct a workshop in the spring with stakeholders to gather their input.

CARB said eligible vehicles include ZEVs priced at or below the manufacturer’s suggested retail price limits outlined in the Inflation Reduction Act of 2022: $55,000 for new passenger vehicles, $80,000 for vans, SUVs, and pickup trucks, and $25,000 for used cars. CARB said that limiting eligibility to first-time ZEV buyers will help expand the market. 

Key quote: Sarah Swig, senior climate advisor to the governor, said in a statement: “While Donald Trump abandons American auto workers and cedes the electric vehicle market to China, Governor Newsom is committed to protecting Californians’ health, securing good-paying jobs, and winning the clean energy economy.” 

“The Trump administration’s reckless retreat has created unprecedented uncertainty for automakers and families alike,” Swig said. “California is proud to partner with automakers who are committed to the transition to a zero-emission future through shared investment to keep costs down and drive the market forward. California will continue stepping up to provide the stability and leadership this moment demands.” 

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