WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! If you think it’s a little hazy today, you’re not wrong. Smoke from Canadian wildfires is moving into parts of the East Coast, making air quality in places like Washington, D.C., unhealthy for sensitive groups. Air quality in the region is expected to be worsened by fires for the next few days, so be sure to stay safe out there! 🔥💨
- 🌺🛢️ In today’s newsletter, we take a closer look at Hawaii’s efforts to boost natural gas and how Hawaii’s Senate Democrats are reacting to the news.
- 🐅🦅🦥 Also, we spoke with conservationists about their legal strategy in challenging the administration’s rollback of the Endangered Species Act.
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.
Recommended Stories
HAWAII FLIRTS WITH NATURAL GAS, DEMOCRATS IN CONGRESS DISTANCE THEMSELVES:
Hawaii’s Democratic governor Josh Green is supporting a bid to construct a brand new liquefied natural gas import terminal off the coast of O’ahu, as part of his broader effort to reduce the island state’s reliance on oil.
At the end of 2024, the Energy Information Administration estimated that 91.9% of Hawaii’s electric power sector consumed petroleum and petroleum products, while only 8.1% was made up of renewable energy resources.
Over 10 years ago, the state committed to having its entire grid system run on 100% renewable electricity. But committing to that so soon was a “mistake,” Green said this summer.
“We made a mistake not having a more balanced energy plan,” he told Hawaii Public Radio, saying it committed the state to having a lot more “greenhouse gas problems.”
He projected confidence that the state can use LNG as a “bridge fuel” to cleaner alternatives like wind and solar. Some environmentalists, though, claim it will undermine Hawaii’s clean energy agenda.
With electricity prices expected to surge by 20-30% in the state, Daily on Energy spoke with the state’s two Democratic senators this week to find out if they support the governor’s efforts. Both Sens. Brian Schatz and Mazie Hirono distanced themselves from the issue.
Hirono told Daily on Energy that there are still a lot of questions surrounding the development of the LNG terminal, as the governor must get approval from the Public Utilities Commission.
“This is where he wants to go,” she said of Green. “All I would like to focus on is continuing to support alternatives and renewables.”
Schatz also pointed to the role of state regulators, saying, “There’s a reason we have a public utilities commission, which is independent when they analyze all these things, so it’s a state-level decision.”
While he hopes the state will continue on a path towards clean energy, “exactly how we get there is a matter of law, not my call.”
Hawaii Reps. Ed Case and Jill Tokuda did not respond to our request for comment.
CONSERVATIONISTS CHALLENGE ENDANGERED SPECIES ACT ROLLBACK:
Lawsuits are mounting against the Department of the Interior’s rollback of the Endangered Species Act, which conservationists argue would allow for private industry to benefit at the expense of animals and habitats.
The department’s move last week to rescind the longstanding definition under the law of “harm” is not a “minor housekeeping clarification,” Jane Davenport, senior attorney at Defenders of Wildlife, told Maydeen.
“It really is a seismic event in terms of really crippling the ESA and putting a stake through its heart because it’s intended to protect and recover listed species and their ecosystems,” she added.
The lawsuit: Earlier this week, the Defenders of Wildlife sent the Interior Department a letter of intent to sue. Davenport noted that the group plans to claim that the department has violated its ESA obligations. Under the ESA all federal agencies have the obligation to ensure that any actions they authorize, fund, or carry out do not jeopardize species or critical habitats.
Davenport said that the change to the definition will affect outdoor recreation activities, such as hunting, fishing, bird watching, and much more.
She added that the move would “certainly…benefit the timber industry and the oil and gas industry and the mining industry and the extractive industries. But that is not our entire American economy.”
There are already two major lawsuits challenging the administration’s rollback – one in Washington and in California.
The litigants claim that the administration violated the Endangered Species Act, the National Environmental Policy Act, and the Administrative Procedure Act.
All the rest
ALL EYES ON THE STRAIT OF HORMUZ: Oil prices are relatively unchanged as traders keep their eyes on traffic through the Strait of Hormuz, looking for signs of greater escalation between the U.S. and Iran.
Yesterday, only 13 transits were recorded through the waterway, down from 21 crossings the day before, according to MarineTraffic. While still far below pre-war levels of around 130 ships passing through daily, the steady daily traffic is a positive sign for traders fearful of another major closure of the strait.
Plus, as U.S. stockpiles of commercial crude only fell by around 1.7 million barrels, analysts have pointed out that domestic supply conditions are more stable than previously thought – causing more confidence in the markets.
Just before 3 p.m. EDT, international benchmark Brent crude was down 0.81%, selling at $84.26 a barrel. West Texas Intermediate had also fallen 0.79% and was priced at $78.97 a barrel.
Some analysis: “Despite the continued escalation of tensions between the United States and Iran, there has so far been no significant disruption to global crude flows that would justify another sustained rally in oil prices,” said Simon-Peter Massabni, head of business development at XS.com.
FERC UNFAZED BY SCOTUS RULING ALLOWING TRUMP TO FIRE INDEPENDENT AGENCY OFFICIALS: Late last month, the Supreme Court expanded the president’s authority to fire officials at most independent agencies, undoing a nearly 100-year-old precedent. Critics have sounded the alarm that the ruling will undermine these agencies’ independence, but the Federal Energy Regulatory Commission does not seem worried.
During a monthly open meeting held this morning, Republican commissioner David LaCerte called the 91-year-old precedent “bad law,” insisting that it is not a crisis for the energy regulating agency. LaCerte said the decisions made by FERC are determined by the Federal Power Act and Natural Gas Act, not over how easily a commissioner could be fired.
“Here as commissioners, we face pressure,” he said. “We have to stand up to money, we have to stand up to power…If a commissioner is going to buckle under the pressure and compromise their integrity because they’re afraid of being fired, well, you probably didn’t deserve to be in this job in the first place.”
FERC chair Laura Swett also dismissed concerns about the Supreme Court ruling, telling reporters that it would not alter the agency’s core statutory missions, legal mandates, or responsibilities.
PUBLIC FINANCE COMMITMENTS GROW IN THE GLOBAL CRITICAL MINERAL SECTOR: The International Energy Agency said in a new report that public finance commitments for critical minerals more than quadrupled between 2023 and 2025, reaching $65 billion.
Over the past year, the U.S. along with a number of other countries, has sought to reduce its dependence on Chinese critical minerals and rare earths. Many countries have signed onto agreements to work on diversifying the critical mineral supply chain.
However, the report noted that price volatility and geopolitical tensions have crimped investment in critical minerals, which declined by 9% in 2025, ending several consecutive years of growth. It added that exploration spending also declined by more than 10%.
The report also noted that critical mineral prices rebounded in 2025 and early 2026 after declining in recent years, a trend driven by tight supply constraints.
NEW ENGLAND SENATORS WAVER OVER PIPELINES: Democratic lawmakers in New England agree that the region needs more energy. And with many refusing to soften their stances on tackling climate change, the Trump administration is running into roadblocks to deliver natural gas infrastructure to the region. But, some Democratic members could be forced to accept new pipelines to tackle soaring electricity costs.
During a recent interview with E&E News, Rhode Island Democratic Sen. Sheldon Whitehouse signaled openness to discussing gas pipelines.
“We’ve got significant additions coming in from offshore wind that’ll help provide our energy needs, but the pipeline question requires some consideration,” he told the outlet.
Maine Independent Sen. Angus King, who votes with Democrats, also admitted that the region is suffering from “high prices in the winter” because of the lack of gas pipelines.
Why does this matter? An acceptance to build-out pipeline infrastructure in New England could prove crucial for permitting negotiations on the Hill. Several Republicans have pushed specific provisions that would ease Clean Water Act requirements for new pipeline projects, accelerating their construction.
LNG TO BECOME SECOND-LARGEST NET EXPORT: The U.S. liquefied natural gas sector is on track to become the second-largest net export industry in the next five years.
The sector is expected to support 550,000 jobs annually and contribute $1.4 trillion to U.S. gross domestic product through 2040, according to an S&P Global study. If current conditions remain, the study says, LNG feedgas demand will double to 36 billion cubic feet per day over the next five years, which is 25% higher than earlier forecasts.
It noted that the total investment in the LNG supply chain will surpass $1 trillion through 2040.
RUNDOWN
Associated Press What living in one of the world’s hottest towns feels like
Bloomberg London Offices Without AC Become ‘Extremely’ Hard to Lease
Grist Data centers are booming. Indigenous leaders want help protecting their lands.
