Daily on Energy: The CAFE standards rollback is official

WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, readers! We hope you all had a great weekend despite the rainy and gloomy weather. 🌧️☔ This week is set to be another busy one in the nation’s capital. With just five weeks left before midterm elections, Senate Republicans are pushing to advance some bills before heading out to campaign. Callie and Maydeen will be keeping an eye out for any new developments. 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. In case you missed it, the Trump administration scaled back fuel efficiency standards, ending what it called the Biden “EV mandate” and requiring carmakers to reach a fleet-average of 34.9 mpg by model year 2031, down from the 50.4 mpg envisioned under the Biden rule. You can read Maydeen’s story on the new rule here. Other points of interest: The final rule would end a trading program that was set to start with model year 2028 allowing EV makers to sell credits to other manufacturers who fell short of meeting standards. The trading credits program is a big business for the EV industry. Tesla made over $11 billion in the past decade from regulatory credits. Another major change in the final rule is it would reclassify small crossover vehicles as passenger vehicles rather than light trucks. DOT estimated that the new standards would lead to the mix of new vehicles to flip from 70% light trucks to 70% passenger cars. The administration has argued that categorizing those vehicles as trucks subject to lower fuel economy requirements created a market distortion. Criticism from Buttigieg: “U.S. manufacturing jobs are down under Trump, including in the auto industry. His strategy failed, and so will this,” former Secretary of Transportation Pete Buttigieg said over the weekend. “Lowering standards will accelerate what he has already been doing: handing the clean tech future to China and forcing Americans to pay more at the pump,” he added. More pushback: Some critics argue that consumers benefit from higher efficiency standards because they spend less on fuel. Kevin Brown, an independent consultant for the Manufacturers of Emission Control Association, told Maydeen in December that the proposed standards at the time were far lower than what the auto industry is projected to achieve, and could allow automakers to “backslide.”Gas prices loom over the Trump team: The Trump administration is trying to deal with how to curb prices at the pump, specifically the record-breaking diesel prices. President Donald Trump yesterday said he is still “very seriously” considering placing a ban on diesel exports to help curb prices. “We’re thinking about it very seriously,” Trump told Fox News. “That can oftentimes lead to a little bit of an increase on gasoline for cars, so we’re looking at it very seriously. We may do it.” Reuters reported today that the White House is considering allowing for broader sales of red-dyed diesel to help bring down prices. Red-dyed diesel is typically reserved for off-road uses, such as farming, and exempt from federal fuel taxes. It was also reported that the administration has reached out to major refineries to see who would voluntarily commit to limiting diesel exports. Nationwide diesel prices as of today are at $6.45 per gallon. All the rest: A SUPREME COURT RECUSAL: Supreme Court Justice Sam Alito is recusing himself from the landmark climate case before the high court next week, but did not offer any explanation as to why. In a letter issued this afternoon, clerk of the court Scott Harris said: “I am writing to inform the parties that Justice Alito has determined that he will not continue to participate in this case.” Alito had been facing pressure to recuse himself from Suncor Energy v. County Commissioners of Boulder County, which is the first case on the Supreme Court docket next week, because he holds investments in oil and gas companies. Previously, the conservative justice pushed back, with a court spokeswoman telling NBC News in May that Alito does not have a financial interest in any party involved in the case and that his recusal was not required. Financial disclosure reports filed last year have revealed that Alito did hold stock in companies such as ConocoPhillips and Phillips 66. Quick reminder: In hearing the case, the Supreme Court has been asked to determine whether states and localities have the ability to sue fossil fuel companies for damages caused by the effects of climate change.CRUCIAL MIDDLE EASTERN PIPELINE BACK ONLINE: The Saudi Arabian East-West Pipeline has reportedly resumed exporting oil out of the Middle East, according to Bloomberg. A person with direct knowledge of the matter told the outlet that Saudi Aramco had been testing the pipeline last week with the hope of resuming flows by the weekend. As of Monday, the source said, overseas shipments had resumed. It marks the first time in weeks that Saudi Aramco has been able to export crude oil via the 745-mile-long pipeline, which was taken offline after being struck by Iranian drones earlier this month. The pipeline has been crucial for bypassing the Strait of Hormuz, with a capacity to carry up to 7 million barrels of oil each day. An extended closure of the pipeline was expected to result in a loss of up to an additional 4% of global oil supply. It will take some time for the pipeline to reach its full capacity, with Bloomberg reporting that it could take about six weeks. REPUBLICAN VYING FOR TEXAS OIL AGENCY SEAT CALLED FOR PUBLIC EXECUTION OF OBAMA: Conservative Bo French, who is seeking to be elected to the Texas Railroad Commission this fall, has come under fire for a series of extreme and racist social media posts shared in the last five years, one of which called for the public execution of political opponents such as former President Barack Obama. Some background: French has leaned into ideological and controversial policies throughout his campaign, vowing to end DEI practices in the commission and fight against the “existential threat” that Islam poses to Texas residents’ way of life. His extreme views garnered bipartisan criticism earlier this summer, after French shared a photo to X showing a group of students, many of whom appeared to be South Asian, at a University of Texas football game. Along with the photo, French accused the university of displacing Texas students with “foreigners.”Multiple high-level Republicans spoke out against French in the aftermath of the post, including Sen. John Cornyn, who said French would “drag the whole ticket down because of his racist comments.” Cornyn said he would not be voting for French for the commission. Newly surfaced posts: A new investigation from CNN KFile has found several other since-removed social media posts made by French that expressed extreme views, such as supporting public executions. “The penalty for treason used to be death. Even for a former president. #HangEmHigh,” one 2020 post from French read, referring to Obama. “I want more than perp walks. I want public executions,” another deleted post from February 2025 reads. If you forgot: The Texas Railroad Commission, despite its name, does not regulate railroads, but rather the energy industry. It is widely considered to be one of the most powerful agencies in the state, overseeing all phases of the oil and gas production process, as well as pipeline safety and natural gas rates. NOR’EASTER AFTERMATH: The nor’easter that hit parts of the East Coast over the weekend caused $10-$13 billion in damage and economic losses, according to AccuWeather.The storm resulted in major coastal flooding from the mid-Atlantic up to the coast into New England, especially along the New Jersey coastline. AccuWeather said the high tides caused significant flooding of homes and businesses. Powerful winds, with some exceeding 80 miles per hour, left more than 200,000 customers without power in areas like Long Island, New Jersey, and southeastern New England. AccuWeather Chief Meteorologist Jonathan Porter said the storm produced the highest water levels since Hurricane Sandy in some areas, especially in New Jersey. The storm is expected to move away from the region on Monday night into Tuesday. ICYMI – A BASEBALL GAME IN A NATIONAL PARK? Over the weekend, the Washington Post reported that White House officials are weighing a plan to build a baseball park within Grand Teton National Park. An MLB official, who spoke to the outlet on condition of anonymity, said that the league first approached the administration about a game in a national park. “This is not a Presidential directive, nor is it being directed by the White House. It’s also not being driven by the Department of Interior,” the White House told the Washington Post. “Therefore, this is not a White House or Administration priority.”A LOOK AHEAD: Sept. 28 the C3 Solutions’ American Energy Leadership Summit is taking place in Washington, D.C., featuring Callie as a moderator for a panel discussion with representatives from Meta, Amazon, and Google. Sept. 28 The Senate Commission on Security and Cooperation in Europe is holding an open hearing on protecting Ukraine’s energy infrastructure. Sept. 29 – Oct. 1 The Women of Renewable Industries and Sustainable Energy Leadership Forum is being held in Chicago, Illinois. Sept. 29 The Washington Legal Foundation is holding a webinar previewing arguments for the Suncor Energy v. County Commissioners of Boulder County case before the Supreme Court next week. Sept. 29 The America’s Growth Summit is taking place in Washington, D.C. Sept. 29 R Street Institute is holding an energy policy reception in Raleigh, North Carolina. Sept. 30 The Federal Reserve Bank of Dallas is releasing its quarterly energy survey of oil and gas executives. Sept. 30 The Senate Committee on Energy and Natural Resources is holding a legislative hearing on a number of bills including one that would streamline the Federal Energy Regulatory Commission’s interconnection queue.Oct. 1 The Los Angeles Business Council’s 20th Annual Sustainability Summit is taking place in Los Angeles, California. Oct. 1 Changemakers 2026, a conference celebrating environmental leaders held by the Maryland League of Conservation Voters, is taking place in Baltimore, Maryland. RUNDOWNPolitico California is fighting Trump on climate. Can it win?Washington Examiner Trump Energy Department goes globalInside Climate News Revealing the Invisible Injustice of Extreme Heat