Daily on Energy: Transportation Department moves to ease fuel efficiency rules for trucks

WHAT’S HAPPENING TODAY: Good afternoon and happy Friday, readers! NASA is scheduled to launch the Nancy Grace Roman Space Telescope this coming Sunday from the Kennedy Space Center in Florida. 🚀🛰️🌠 This new space telescope will scan the skies for at least the next five years, investigating mysteries such as dark energy and dark matter. The telescope has a field of view over 100 times larger than the Hubble Space Telescope, and we should start seeing photos from its mission early next year. You can tune into the Sunday launch here. 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. Two U.S. nationals who survived the devastating flash flooding in Nepal this week spoke with CNN in the wake of the disaster, calling it a “traumatizing” experience. “The way it came, it came just like a tsunami,” Anjana Raja told the outlet. “It just came going all the way up, and just like a tsunami, the how it sweeps, going like a roll. It just took the buses, the–the–the plants, houses, people, everything.”“Just seeing so many people die, I think that’s going to last for a while,” Pattabiraman Venkatesan said. “It’s going to linger for a while. I don’t know if we will get over it anytime soon. Just was – it was very disturbing the speed at which things came down.”TRUMP ADMINISTRATION MOVES TO WEAKEN FUEL ECONOMY RULES FOR HEAVY-DUTY TRUCKS: The Trump administration has moved to narrow fuel economy standards for trucks as diesel prices inch closer to record highs. The rule: In a final interpretive rule, the Transportation Department’s National Highway Traffic Safety Administration said the rule would clarify the scope of the agency’s interpretation of the standards for medium- and heavy-duty trucks. The department said the standards go beyond statutory limits and “restricted manufacturers’ ability to design innovative approaches to meet commercial truck fuel efficiency standards.” It added that the agency has the authority to regulate vehicle fuel efficiency, but not to standalone engines or individual vehicle components. The final rule does not repeal the current fuel-efficiency standards for trucks, but it establishes the legal foundation for future rulemaking. EV opposition: Corporate average fuel economy (CAFE) standards require car manufacturers to improve the fuel efficiency of their fleets over time. The Trump administration and Republicans have argued that stringent fuel economy standards on all types of vehicles reduce consumer options and effectively mandate electric vehicles. The administration has also proposed an overhaul of the Biden administration’s CAFE standards for passenger cars and light trucks for model years 2022 to 2031. The move follows a week in which diesel prices were inching closer to an all-time high. Today, the national average price for diesel is $5.61 per gallon, according to AAA. The all-time record high for diesel is $5.82 per gallon in June 2022 following the Russian invasion of Ukraine. In a statement, the Sierra Club criticized the administration’s move to weaken fuel-efficiency standards amid rising diesel prices. “Leave it to the Trump administration to make things even more expensive at a time when diesel prices are soaring and families are already struggling with the high cost of everyday goods,” Katherine Garcia, director of the Sierra Club’s clean transportation for all campaign, said. She added, “More efficient trucks save fuel, reduce operating costs, and give our economy a stronger defense against volatile oil prices. This administration is once again making it harder for Americans to make ends meet during an affordability crisis.”BIPARTISAN TRANSPORTATION BILL EXPANDING KEY CONSERVATION PROGRAM MAY NOT SEE A VOTE: Congress has a limited number of days when lawmakers return from recess to pass legislation that would avoid a government shutdown and also accomplish key party goals. Several major bills have yet to reach House or Senate floors, and it is unlikely most of these will be put to a vote before the chambers break for recess again in October ahead of the midterm elections. One of these is the Build America 250 Act, which would authorize federal surface transportation programs and activities through fiscal year 2031. The current surface transportation law was enacted five years ago, with much of that funding set to expire in September. The bill would primarily reauthorize funding for highway safety programs, bridge programs, railways, and public transportation. It would also establish a new annual registration fee for electric vehicles, starting at $130 for covered EVs and $35 for covered hybrid vehicles. As currently written, the bill would also strengthen lesser-known programs focused on conservation, including the Wildlife Crossings Pilot Program. This program, created by the 2021 Infrastructure Investment and Jobs Act, was established after Congress found there are more than a million wildlife vehicle collisions each year that pose a risk to human safety and wildlife survival, and can cost more than $8 billion. The wildlife crossing program offers grants for projects aimed at reducing these collisions. These include the development of new technology to identify wildlife-collision hot spots, the installation of additional fencing along roadways, and the construction of underpasses or overpasses for wildlife to cross over busy roadways. The Department of Agriculture has estimated that these crossings can reduce collisions by up to 97%. The IIJA authorized roughly $350 million in funding for the program over five years. The BUILD America 2050 Act, sponsored by Republican Rep. Sam Graves of Missouri, would expand that authority to $400 million until 2031. In May, the bill passed out of the House Committee on Transportation and Infrastructure with overwhelming bipartisan support in a 62-2 vote. The Senate has yet to bring forward its own version of a surface transportation reauthorization bill that would also include provisions for wildlife crossing funding. Instead, the upper chamber put forth a continuing resolution at the start of the month to keep the government funded through mid-December. While the CR would extend some surface transportation funding, it does not apply to discretionary grant programs like the Wildlife Crossing Program. House leadership did not respond to the Washington Examiner’s inquiry as to whether there is a time frame for the Build America 250 Act to make it to the floor this Congress. But with just over a dozen legislative days left for the House, the chances of the bill receiving a vote before the midterm elections are small. When asked for comment, Graves’ office told Daily on Energy that passing a reauthorization bill for transportation funding remains a priority for the congressman. All the rest NATIONAL PARK SERVICE WEIGHS DEAL TO GIVE AWAY PART OF YOSEMITE: In an unprecedented move, the National Park Service has been working for more than a year to hand off a small portion of Yosemite National Park to a private interest.The details: The deal would give roughly a quarter-mile strip of land within the national park to a private real-estate developer that is seeking to build a road for direct access to the heart of Yosemite, according to NOTUS. Four people directly familiar with discussions about the plan told the outlet that the Trump administration has been looking into ways to give the part of the park to Kingsbarn Realty Capital since the spring of last year. The most recent proposal is to give up the land, or rather the “interest” in the land, in an easement deal in exchange for land of equal value in California. Kingsbarn Realty Capital currently owns an 83-acre parcel of land just outside Yosemite. Its current access road is more than 10 miles from an entrance to the national park. In obtaining the quarter-mile strip of the park, it would give the property direct access to Yosemite. The deal is reportedly backed by top leadership within the Interior Department. One person familiar with the conversations called the “political pressure” from the administration “very unusual,” NOTUS reported. Land exchanges are not uncommon, but they typically are prompted by the government first identifying a parcel of land that it seeks to add to a national park or forest. TAKING A CLOSER LOOK AT OIL: We are six months into the war with Iran and oil appears to be moving fairly consistently through the Strait of Hormuz, even though an extended peace deal has not yet been reached. Goldman Sachs is now estimating that flows through the crucial waterway have recovered to about two-thirds of the levels seen before the war began, when around 20 million barrels of crude per day transited. In a note released today, Goldman analysts estimated that the total number of petroleum products passing through the strait is now around 15 million to 16 million barrels per day. The analysts said this is about 7-8 million barrels per day lower than pre-war totals. It’s hard to estimate how much oil is specifically moving through the strait, as tankers often will turn off their transponders to avoid detection and attacks from Iran. Bloomberg reported that roughly 6-8 million barrels of crude is passing through, while Goldman said the number of transits, on the high end, is “likely close” to the Trump administration’s estimates of 8-10 million barrels per day. The consistent flow has spurred renewed confidence among traders, causing prices to fall slightly. Just after 2:30 p.m. EDT, Brent crude had dropped 0.55% and was selling at $88.03 a barrel. West Texas Intermediate fell 0.17% and was priced at $83.39 a barrel. Plus…some news out of Venezuela: The Wall Street Journal is reporting that Chevron and other U.S. oil firms are close to reaching a deal that would result in billions of dollars of new investments in Venezuela’s oil fields. People familiar with the discussions told the outlet that Chevron specifically is close to signing a deal that would add two new heavy-oil fields to its portfolio. The oil major is the only U.S. company active in Venezuela and has three joint ventures in the state-owned oil firm PdVSA. Halliburton, an oilfield service company, is also reportedly in negotiations for a deal to supply its equipment for new drilling operations. The news comes as Energy Secretary Chris Wright is expected to travel to the country next week. As we touched on in yesterday’s newsletter, the Trump administration is reportedly considering taking a stake in Venezuela’s oil fields. The Washington Post reported new details on the negotiations today, revealing that the U.S. is looking at acquiring long-term contracts for a third of Venezuela’s oil reserves, according to two unnamed people familiar with the negotiations. The deal would reportedly give the U.S. a stake in 17 oil fields. OVER 90,000 PEOPLE HAVE BEEN AFFECTED BY THE FLASH FLOOD IN NEPAL: The Red Cross today said that more than 90,000 people are estimated to be directly affected by the flash flood in the Himalayan region, Reuters reports. “We believe that at least ​93,000 people have been affected and are in ​great need,” David Fisher, head of delegation ⁠for the International Federation of Red Cross and ​Red Crescent Societies in Nepal, said at a Geneva press ​briefing.Fisher added that there are concerns of a secondary flood. Rescue efforts were paused earlier today amid fears that a lake formed by Wednesday’s glacier collapse and flash flooding could trigger a second flood. At least 1,900 people are missing. The State Department yesterday said that about 90 Americans may have been impacted by the disaster. Three U.S. citizens have been rescued, but there have been no reports of any American deaths.LUCID RECALLS MORE THAN 27,000 EV SEDANS OVER FIRE RISK: The electric vehicle maker Lucid is recalling 27,185 of its sedans in the U.S. due to concerns over increased fire risks, CNBC reports. The National Highway Traffic Safety Administration issued a recall notice over Lucid’s flagship Air luxury sedans in the U.S. after an exterior lighting circuit was found to be at risk of overheating, potentially leading to a fire risk. NHTSA asked owners to park their vehicles outside and away from structures. Lucid has issued an over-the-air software update to address the issue and about 20,000 vehicles have received the update. ICYMI – TRUMP’S HEAD OF OFFSHORE LEASING LEAVING FOR HALLIBURTON: The man in charge of Trump’s offshore lease sales for oil and gas drilling, Matt Giacona, is leaving the Trump administration and heading to the private sector. Callie scooped yesterday that Giacona, acting director of the Marine Minerals Administration, is leaving his post at the start of next month, with his last day set for Sept. 4. Two industry sources close to the discussion confirmed that he will be leaving the administration to take a senior role in government affairs at oilfield services company Halliburton. He is expected to start there on Sept. 8. His replacement has not yet been named. Quick reminder: The Marine Minerals Administration, a subagency of Interior, was created in July with the intent of establishing a single federal agency to oversee the development of offshore energy and mineral resources. The agency merges two previous agencies, the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement, which were separated following the 2010 Deepwater Horizon oil spill.Read more from Callie here. RUNDOWNInside Climate News Can California Farmers Break Free From Plastic?Canary Media So, where exactly does the US energy transition stand?Bloomberg How the War in Iran Is Redrawing the Global Energy Map