Daily on Energy: Methane fee finalized, White House submits plan for tripling nuclear power, and BLM helps with Christmas trees

We are also following news coming out of the UN’s annual climate change conference in Azerbaijan, where Exxon CEO Darren Woods discouraged President-elect Donald Trump from withdrawing from the Paris Agreement. Meanwhile, UN Secretary-General Antonio Guterres urged global leaders to strike a deal on climate finance. 

The newsletter also covers the American Petroleum Institute’s new policy roadmap for the next Congress and incoming Trump administration, describing ways to boost domestic energy while rolling back some of the regulations brought by the Biden administration.  

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.

METHANE FEE FINALIZED BY EPA: The Environmental Protection Agency today finalized a major climate rule tackling methane emissions through a controversial fee on oil and gas companies. 

The details: The final rule was announced on Tuesday amid the United Nations’ annual Climate Change Conference in Baku, Azerbaijan, as Biden administration officials aim to affirm America’s commitments to mitigating climate change despite President-elect Donald Trump having won the recent election. 

The rule imposes a fee, called the “Waste Emissions Charge,” on oil and gas companies if their methane emissions exceed certain levels. It is only expected to be applied to “high-emitting” oil and gas producers that report emissions of more than 25,000 metric tons of carbon dioxide equivalent every year. Facilities that report wasteful methane emissions will face a fee of $900 per metric ton in 2024, $1,200 in 2025, and $1,500 in 2026 and beyond.

The EPA has estimated that the rule will result in reductions of 1.2 million metric tons of methane through 2035. 

Mixed support: The American Petroleum Institute, a top oil and gas group that previously called the fee a “punitive tax,” said the rule will hurt its ability to meet energy needs across the country. “API supports smart, effective methane regulations, yet this rule hampers our ability to meet the growing energy needs of American families and businesses and fails to advance meaningful emissions reduction,” API senior vice president of policy, economics and regulatory affairs Dustin Meyer said. “This is the wrong approach on methane policymaking, and we look forward to working with the incoming administration and new Congress to get this right.”  

The American Exploration Production Council, which is made up of around 30 oil and gas producers, has also already called on Trump to reverse the rule. However, not all members of AXPC are in agreement. Last month, officials with ExxonMobil told the Washington Post that there “are some issues” the company does not align with the industry group. 

“We think there needs to be an accountability mechanism within the regulations,” ExxonMobil Senior Vice President Bart Cahir said of the methane tax at the time. 

Surviving Trump: Trump has vowed to walk back multiple Biden EPA rules under his new administration, particularly those cracking down on the fossil fuel industry. While this new rule may be at risk, Trump may face difficulty repealing it as the rule was mandated by the Democratic-passed Inflation Reduction Act. 

Read more from Callie here. 

WHITE HOUSE REVEALS PLANS TO TRIPLE NUCLEAR ENERGY CAPACITY BY 2050: The Biden administration announced plans to triple U.S. nuclear energy capacity by 2050 as it aims to reach its net-zero emissions goal. 

What’s the plan? It would deploy an additional 200 gigawatts (GW) of new nuclear energy capacity by 2050 through several actions such as building new small and large reactors, expanding existing facilities, and developing the workforce. The administration also set earlier targets to deploy 35 GW of new capacity and then 15 GW per year by 2040. 

“These domestic nuclear energy deployment targets are ambitious yet achievable, and serve as a signal that the U.S. government is committed to facilitating the safe and responsible deployment of nuclear energy and necessary, supporting infrastructure,” the framework reads. 

This plan adds to the Biden administration’s previous steps to promote the nuclear energy sector, such as by providing clean energy tax credits through the Inflation Reduction Act. 

“Over the last four years, the United States has really established the industrial capacity and the muscle memory across the economy to carry out this plan,” White House national climate adviser Ali Zaidi told Bloomberg. 

Read more from Maydeen here. 

AT COP29, EXXON CEO DISCOURAGES TRUMP FROM PULLING THE U.S. OUT OF THE PARIS AGREEMENT: Exxon Mobil Chairman & CEO Darren Woods told Bloomberg at the UN climate conference that President-elect Donald Trump should remain in the Paris Agreement to push “common sense” carbon cutting policy. 

In regards to withdrawing from the Paris Agreement, Woods said: “The way you influence things is to participate, not to exit.” He suggested the U.S. should remain in the agreement to provide “common sense” carbon reduction policy at the international level. 

Trump in his first term pulled the U.S. out of the agreement and has vowed to withdraw from the agreement again. In 2017, Exxon expressed support for the agreement, asking the Trump administration to remain in the deal

IN OTHER COP29 NEWS, UN CHIEF TELLS GLOBAL LEADERS A DEAL MUST BE MADE: UN Secretary-General Antonio Guterres told global leaders at COP29 it is essential they make a deal on climate finance to help prevent extreme weather disasters. 

“The sound you hear is the ticking clock. We are in the final countdown to limit global temperature rise to 1.5 degrees Celsius and time is not on our side,” Guterres said. 

This year’s COP29 goal is to strike a deal on funding that could address climate-related problems facing developing countries. Guterres said the clean energy revolution is here and global leaders must “ensure it is fair, and fast enough to limit global temperature rise to 1.5 degrees Celsius.” 

He added “COP29 must tear down the walls to climate finance. Developing countries must not leave Baku empty-handed. A deal is a must and I am confident it will be reached. We need a new finance goal that meets the moment.”

According to the World Meteorological Organization, 2024 is on track to becoming the hottest year on record. Guterres said the year was a “masterclass in climate destruction,” adding that “All these disasters, and more, are being supercharged by human-made climate change. And no country is spared.”

OIL AND GAS TRADE GROUP UNVEILS ENERGY ROADMAP: The American Petroleum Institute has unveiled a five-point policy roadmap for the next Congress and new Trump administration, in an effort to boost domestic energy and rollback major milestones from the Biden administration. 

The details: API released the policy roadmap on Tuesday, saying it has also delivered its goals to Trump in a letter. “What this is, it is truly a vision for the American energy leadership going forward for both the new president and for the new Congress,” API President and CEO Mike Sommers told reporters. “But it’s also a return to common sense. There are a number of proposals in [the letter] that include the importance of getting permitting reforms done and repealing some of the regulations by the Biden administration.”

Specifically, the roadmap looks to (1) protect consumer choice by repealing several regulations, including the EPA’s tailpipe rule, (2) bolster America’s geopolitical strength by lifting the LNG permitting pause and process all pending LNG export applications, (3) leverage natural resources by issuing boosting offshore leasing and rolling back the EPA’s methane fee, (4) reform the U.S. permitting system, (5) advance “sensible” tax policy by extending tax provisions for domestic infrastructure investments and retaining the 21% corporate tax rate. 

Key quote: Sommers told reporters that API is confident their goals will be met with bipartisan support within the Republican-led Congress. “It’s no secret that it looks like Republicans are going to keep the majority in the House of Representatives, but it’s going to be a very slim majority,” the chief executive said. “And these are things that we think can get bipartisan support, because I think all Americans understand how important continuous development of our resources are going to be for the future. So we want to work with both sides of the aisle to advance this agenda.” 

SHELL WINS OVER CLIMATE RULING: Oil and gas giant Shell won an appeal Tuesday against a landmark climate ruling from the Dutch government that ordered the company to slash its greenhouse gas emissions. 

The original ruling: In 2021, a district court in the Hague had ordered Shell to sharply reduce its GHG emissions by 45% by the end of 2030 – compared to levels from 2019, according to The Guardian. Environmental activists praised the landmark decision as a win over big global polluters and progress for goals of the Paris Agreement. At the time, Shell reportedly said it would appeal the ruling and insisted governments, not companies, were responsible for meeting those goals. 

The details: An appeals court sided with Shell on Tuesday, supporting the fossil fuel company’s claim that targeting one specific company would not be effective in curbing overall emissions as other oil and gas companies would continue to fill any gaps in demand, per the Financial Times. 

“There is currently insufficient agreement in climate science on a specific reduction percentage that an individual company such as Shell should adhere to,” the court reportedly said. 

Though, the court did say Shell has a responsibility to cut its emissions. The company has reportedly made significant progress in doing so, saying that by the end of 2023 it had reduced emissions by 29% compared to 2019, the Financial Times reported. 

Reaction: Donald Pols, the director of the Dutch branch of Friends of the Earth Milieudefensie which backed the original GHG cuts, said the recent decision “hurts.” Pols promised to continue to target large polluting companies like Shell. 

“At the same time, we see that this case has ensured that major polluters are not immune and has further fuelled the debate about their responsibility in combating dangerous climate change,” Pols said, according to The Guardian.

OPEC+ SLASHES OIL FORECASTS…AGAIN: OPEC+ has once again cut its global oil demand growth forecast for 2024 and 2025 over weakness in China, India, and elsewhere. 

The details: The global oil bloc released its monthly report on Tuesday, saying oil demand worldwide will rise by 1.82 million barrels per day in 2024. This is down from the projected increase of 1.93 million barrels per day forecast in October. Similarly, growth is expected to shrink slightly in 2025, falling from an increase of 1.64 million barrels to 1.54 million barrels per day. 

In the report, OPEC+ pointed to weakening demand in China, India, and other regions in Asia, Africa, and Eurasia. China is responsible for the majority of the lowered forecasts, with its own growth dropping to 450,000 barrels per day from 580,000 barrels per day. 

Oil hike delays: For months, OPEC+ has delayed its planned oil output hike to further support prices as international and U.S. benchmarks have dipped below $70 per barrel several times this fall. Last week, several members of the oil bloc agreed to extend production cuts by 2.2 million barrels per day through the end of December. These cuts began in September and were originally expected to gradually phase out next month. As of 12:30 pm on Tuesday, Brent crude was trading around $72.09 while West Texas Intermediate was priced at $68.29. 

OH CHRISTMAS TREE, OH CHRISTMAS TREE: Channel your inner Clark Griswold this holiday season by opting to cut your Christmas tree for as little as $5 – thanks to the Interior Department’s Bureau of Land Management. 

The details: Starting Tuesday, BLM is offering permits as low as $5 across a dozen states for people to cut their own Christmas trees stretching as tall as 12 feet through Dec. 24. The permits – which vary on cost depending on BLM district offices – don’t exceed $15 and allow families to cut their very own tree from BLM-administered lands. 

Depending on the district, permit holders can typically cut up to five 12-foot trees in their region. This includes a wide variety of trees, including pine, Douglas-fir, and true firs. Permits can be purchased online or in person at your local BLM district office during business hours. 

If you’re willing to cut down your tree and strap it to the roof of your car, it could loosen the strain on your wallet as the American Christmas Tree Association estimates the average fresh six-foot tree costs around $80. 

RUNDOWN 

Inside Climate News Advocates Expect Maryland to Drive Climate Action When Trump Returns to Washington

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The San Diego Union Tribune Opinion: Private sector investors can help in fight against climate change