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A BIG WEEK FOR NUCLEAR: The Biden administration has given its backing to carbon-free nuclear energy, but the debate over existing and new technologies and their role in the “green transition” — or whether they should have one at all — still rage among other governments.
The issue is being litigated far and wide this week from the halls of Springfield to Stockholm as policymakers consider whether to sign up for new and still unproven nuclear technologies and to give nuclear parity with renewable energy in climate policy.
What it’s about: The post-invasion business environment has been pretty favorable for existing and next-generation nuclear as some countries re-embrace atomic energy. Many across ideological boundaries are promoting its value to contribute to energy security without generating emissions, with some envisioning a post-invasion nuclear renaissance.
Many still are not buying it. Advanced nuclear is still a ways off from realizing commercial success and is running into issues with fuel supply that threaten to delay things further.
In the States: Illinois currently has more operating reactors than any other state, and its unified Democratic government authorized hundreds of millions of dollars in subsidies to save economically threatened plants in 2021.
But current law prevents Illinois from extending its lead into advanced nuclear. Illinois’s General Assembly will debate the matter tomorrow as it considers a Democratic-led bill that would remove an active prohibition against new nuclear plant construction.
Other states are keeping new nuclear out, while those traditionally hostile to it, including West Virginia, make way for it. Minnesota’s new clean energy standard requires electric utilities to purchase 100% carbon-free power by 2040 but does not remove a moratorium on the construction of new nuclear plants.
In Colorado, pro-nuclear Republican lawmakers have been seeking to amend that state’s clean energy standard to include nuclear. A Senate proposal to do that was voted down in committee on Feb. 14.
“A bipartisan consensus has clearly formed in support of nuclear in D.C., [while] the Democratic majority in Colorado has not been welcoming of any effort to explore new nuclear power,” Jake Fogleman, an energy policy analyst with Denver-based think tank Independence Institute, told Jeremy.
Over in Europe: The issue continues to divide the European Union, where a French-led group of member nations wants the European Commission to build on its formal blessing of nuclear via the “green taxonomy” and value nuclear power in talks about reform to the electricity market.
Energy and transport ministers began a two-day meeting in Stockholm today, where France’s Agnes Pannier-Runacher, minister for energy transition, plans to convene a “nuclear alliance” to promote the interests of pro-nuclear countries, Euractiv reported.
That would include France and 12 others — Bulgaria, Romania, Slovenia, the Czech Republic, Sweden, Italy, Slovakia, Poland, Hungary, Croatia, the Netherlands, and Finland — all of whom promote “the contribution of nuclear power to our climate objectives and to energy security in Europe,” according to Pannier-Runacher’s office.
Exclusions include Spain, Austria, and of course Germany, whose remaining reactors will be shuttered in April.
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POWER PLANT EMISSIONS FELL IN 2022: U.S. power plants emitted fewer harmful pollutants in 2022 compared to previous years, continuing a long-term decline as plants continue to switch from coal to natural gas.
According to the EPA report, coal generation dropped by 6% in 2022, while natural gas increased by 7%.
In 2022, the smog components nitrogen oxide and sulfur dioxide dropped by 4% and 10%, respectively, the EPA said, while mercury emissions decreased by 3%. “Our work is far from done, but the data prove we’re on the right path,” said EPA Administrator Michael Regan.
The report comes on the heels of a decision by the EPA to reinstate the scientific, economic and safety underpinnings of the Mercury and Air Toxics Standards, or MATS, which allows it to regulate emissions of methane and other toxic pollutants. The determination was withdrawn by former President Donald Trump in 2020.
RUSSIA BOOSTS CRUDE EXPORTS TO NEAR-RECORD LEVELS: One year after its Ukraine invasion, Russia continues to export massive volumes of oil-– with crude exports rising last week to an average of 3.38 million bpd. (For context, that level has been surpassed just four times since the start of 2022.) It also shipped record-high volumes of crude from its Pacific terminals, according to Bloomberg.
The increase is due primarily to an uptick in shipments to Asia, India, and Turkey. Total volumes sent to those countries, as well as those that did not show a final destination, rose to a pre-invasion high of 3.27 million bpd, according to ship tracking data.
Estimating how much oil each country received has grown increasingly difficult, however, as Russia continues to grow its massive fleet of unregistered “shadow tankers.” These ships are used to evade international sanctions and allow Russia to ship its oil above the capped price set by G7 leaders in December.
Ship-to-ship transfers have also soared- and some 30 cargo transfers have been observed in the Mediterranean alone since the start of the year.
PRICE IMPACT: The G7 capped Russian crude exports in December at $60 per barrel, a price point designed to keep its oil on the market while also limiting Russia’s profits. And official accounts appear to suggest it is working: government data placed Urals around $49 per barrel in January.
But that does not include the massive fleet of off-book tankers that are now believed to ship a lot of Russia’s crude. In fact, a new assessment from the Institute of International Finance, Columbia University, and the University of California estimates about half of Russian crude is sold via the shadow fleet. That means its crude is averaging around $74 per barrel. (Some consumers are paying as much as $82 per barrel, the report says.)
Exports from Russia’s Pacific ports “have not dropped in a meaningful way and shipments do not appear to comply with the price cap,” the researchers said.
The West could choose to crack down on Russia’s ghost fleet, but doing so could backfire and threaten supplies if it were to halt production.
VINFAST SLASHES LEASE PRICES FOR FIRST U.S. BUYERS: Vietnamese EV maker VinFast slashed the lease prices for its first U.S. customers this week, announcing a cost reduction of more than 50% as it prepares to begin delivery as early as March 1.
In a statement, VinFast said the price cut allows it to stay competitive with other EV makers in the U.S., including automakers who qualify for the $7,500 consumer tax credit included in the Inflation Reduction Act. (VinFast was not one of the 39 “qualified manufacturers” on that list.)
“This is our special offer to VinFast customers for the VF 8 City Edition models in order to stay competitive with other brands,” VinFast said in a statement. The move reflects the growing competition among EV makers in the U.S., as more automakers shift their focus from traditional ICE vehicles to EVs.
CLEAN WATER ACT LEADING THE HOUSE T&I AGENDA THIS WEEK: House Republicans, who had promised to push through reforms to key environmental laws blamed for delaying new infrastructure and other projects, are moving a pair of proposals this week to revise the Clean Water Act and stop the Biden administration from doing things its own way.
The Transportation and Infrastructure Committee will begin marking up a Congressional Review Act joint resolution of disapproval tomorrow seeking to nullify the Biden administration’s definition of “waters of the United States” under the CWA. Chairman Sam Graves led the resolution, which has a companion in the Senate led by Senate EPW Ranking Member Shelley Moore Capito.
The committee will also take up a bill just introduced on Friday that would establish new strictures on states’ water quality certification permitting authorities under the Clean Water Act, which have been “weaponized” to block projects, sponsor Rep. David Rouzer of North Carolina said.
What it would do: Rouzer’s bill would require states to inform project applicants within 90 days whether the states have all of the materials needed to process a certification request. It would also require states to publish requirements for receiving a CWA certification and would add language to the law to prohibit states from considering impacts other than water quality when reviewing a project.
The Biden administration proposed revisions last year to the implementing regulations for Section 401 that broadened the scope beyond direct discharges associated with construction and operation of a project, dubbed the “activity as a whole” approach.
Why 401: Section 401 gives states authority over water quality certifications. It is frequently litigated and has been central to the legal challenges and construction delays of major projects, including the Mountain Valley Pipeline.
Opponents of the pipeline have sued in hopes of getting both the Virginia and West Virginia CWA permits for MVP tossed out. Both cases are before the Fourth Circuit Court of Appeals.
LOW RHINE LEVELS SPARK FAMILIAR SHIPPING FEARS: Water levels at the Rhine River have fallen drastically in recent weeks, disrupting shipping operations and snarling operations along the 800-mile river. The key waypoint of Kaub is at its lowest point since 2017, threatening to slow the shipment of vital goods such as oil products, coal, and iron ore. Barges carrying diesel have had to cut their load by half—and it’s unclear whether the dry spell will lift anytime soon. It’s the second time in less than a year that the waterway has fallen to dangerously low levels.
“For the time of year, it’s quite bad,” shipbroker Mitchell van der Hoeven told Bloomberg. “We might get into a situation that we had last summer, where production will need to be cut or stopped.”
The Rundown
Reuters Biden’s EV highway takes shape
Financial Times Green subsidies lift wind industry’s longer term prospects
Calendar
WEDNESDAY | MARCH 1
The American Bar Association will host the Environmental Summit of the Americas in New York City, where environmental, social, and governance will be on the agenda.
MONDAY | MARCH 6
The annual CERAWeek conference kicks off in Houston, Texas. Learn more and register here.
TIME AND DATE TBA
The Senate Environment and Public Works Committee will hold a hearing in early March on the emergency response and cleanup effort related to the train derailment in East Palestine, Ohio.
