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Wright says coal saved lives, Alaska drilling timeline, and Gallego speaks

WHAT’S HAPPENING TODAY: Good afternoon and happy Thursday, readers! We hope you’re staying warm despite the frigid temperatures.

We’re kicking off today’s newsletter with remarks from Energy Secretary Chris Wright, who said the administration’s efforts to strengthen coal generation have helped to save hundreds of lives during these severe winter conditions. ❄️☃️🥶

Meanwhile, we’re getting a clearer timeline from the Department of the Interior on plans to open more oil and gas drilling in Alaska 🛢️⛰️. Continue reading to see what the timing looks like. 

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.

WRIGHT SAYS COAL SAVED HUNDREDS FROM FREEZING TO DEATH: Energy Secretary Chris Wright touted that coal generation saved hundreds of lives during this cold snap, which is hitting eastern and southern states with frigid temperatures. 

“This beautiful clean coal was the MVP of the huge cold snap we are in right now,” Wright said at a White House cabinet meeting today.

“I can say with some confidence, hundreds of American lives have been saved, because of [Trump] leaning in and stopping the killing of coal and revitalizing coal,” Wright said. “Coal, over the last few days, where we had peak demand and electricity, has delivered 20 times more electricity than solar and batteries.” 

The DOE under the Trump administration has issued several emergency orders to keep retiring coal plants running to address reliability concerns as energy demand increases and electricity prices rise. The administration has blamed rising energy prices on policies enacted during the Biden administration, which sought to phase out fossil fuels like coal and shift toward renewables. 

President Donald Trump said that “clean, beautiful coal,” is not affected by freezing weather. The president, who has been a strong critic of renewable energy like offshore wind, claimed that the “windmills are all frozen” right now. 

SCOOP – INTERIOR’S DESIRED TIMELINE FOR ALASKAN DRILLING LEASE SALES: The Trump administration is moving full steam ahead with opening Alaska’s North Slope to more oil and gas drilling, with multiple lease sales in the region set to be held this year. 

The Interior Department confirmed to Callie this week that it plans to hold its first sale in the Coastal Plain of the Arctic National Wildlife Refuge in 2026. The agency first announced that it would be opening the roughly 1.56 million-acre area along the edge of the Beaufort Sea for fossil fuel leasing in October, but had not yet confirmed when the first lease sale would be held. 

The agency is required by the One Big Beautiful Bill Act to hold four lease sales in the region over the next seven years. 

Interior has also rolled back Biden administration protections for the National Petroleum Reserve of Alaska – also located in the North Slope – to open more access to drilling operations. In October, the Bureau of Land Management published a call for nominations and comments on what areas should be held in its first lease sale in the NPR-A. 

At the time, the agency said the sale would take place over the 2025-2026 winter. The agency confirmed to Callie this week that it still plans to hold the sale in the first quarter of this year. Interior declined to provide any additional information as to what tracts of land could be included due to its sealed bid process. The agency plans to hold five lease sales in the NPR-A over the next 10 years. 

GALLEGO SEEKS TO REINSTATE IRA TAX CREDITS WITH ENERGY PLAN: Arizona Democratic Sen. Ruben Gallego spoke with Maydeen about his energy plan focused on lowering costs and boosting reliability by restoring clean energy incentives while also supporting the oil and gas industries. 

Gallego last month launched his energy plan, “Fostering American Energy Innovation and Affordability,” which provides a framework to address rising energy demand, reliability, and costs. Part of the framework includes reinstating and extending residential energy efficiency and clean energy tax credits that Republicans had phased out through the One Big Beautiful Bill Act. 

As a reminder: The tax credits were part of the Biden administration’s Inflation Reduction Act, which provided hundreds of billions of dollars for tax credits and programs to bolster the clean energy sector. However, Trump’s tax bill, the OBBBA, clawed back many of these credits. 

Gallego told Maydeen that the tax credits would provide the business community with “certainty,” while sending a message about the “U.S. government’s word that we will honor our commitments, especially, when we have appropriated money.” 

He added that he doesn’t believe tax incentives will be necessary all the time when it comes to renewables. “As more investment happens, as we create the right environment for it, you’re going to see less and less incentives” for renewables, he said. 

Simultaneously, the plan outlines specific timelines and requirements for permitting oil and gas pipelines and includes funding for Small Modular Reactors and advanced nuclear projects. It also provides recommendations on how to address the rise in energy demand from the growth of AI and data centers. 

“We have to get the industry to pay for their share of the energy and not have it fully supported by the individual ratepayer,” Gallego said. 

TRUMP OFFICIALS FEAR COURT LOSS OVER ENDANGERMENT FINDING ROLLBACK: Last summer, the Trump administration announced its biggest climate change-related policy rollback, proposing to rescind the 2009 endangerment finding. Six months later, the administration has yet to formally pull it back, as officials fear the move wouldn’t hold up in court. 

The details: Two sources familiar with the matter told the Washington Post this week that the administration has delayed finalizing the repeal of the landmark climate ruling. The Environmental Protection Agency’s proposed rule has been under review at the White House for weeks. Originally, the agency had hoped to finalize the rollback by the end of 2025. 

If finalized, the rule would reverse the 2009 finding that six greenhouse gases, including carbon dioxide and methane, pose a threat to public health and welfare. The finding allows the EPA to regulate greenhouse gases by setting emissions standards for vehicles and power plants. 

Sources told the Washington Post that the proposed rule has sparked concerns within the White House Office of Information and Regulatory Affairs, particularly over the strength of its scientific and economic analysis and backing. The EPA is reportedly resisting making any changes to its proposed rule and is pushing for the White House to finalize and publish the rule as soon as possible. 

Some background: The move has mixed support from the fossil fuel industry. Major trade groups like the American Petroleum Institute have said they back removing regulations for “mobile sources” of emissions, such as vehicles, but support keeping the endangerment finding in place for “stationary sources” such as buildings. 

“We do support the federal regulation of methane, and we’re focused on reducing our emissions as an industry, so we want them to maintain the endangerment finding for stationary sources,” API president and CEO Mike Sommers said earlier this month. 

OIL PRICES SPIKE ON RISK OF IRAN CONFLICT: Oil prices spike today as Trump increases pressure on Iran to accept a nuclear deal, with warnings of a possible military strike. 

As of this morning, Brent crude futures rose $3.33, or 4.8%, to $71.73 per barrel, marking the first time prices hit $70 since September. U.S. West Texas Intermediate crude was up $3.16, or 5%, at $66.37 per barrel.

The price spike came after Trump posted on Truth Social that “Hopefully Iran will quickly ‘Come to the Table’ and negotiate a fair and equitable deal – NO NUCLEAR WEAPONS – one that is good for all parties.” 

The president warned Iran that if there is no nuclear deal, the U.S. could hit the Islamic Republic with a naval fleet similar to the one used in the military operations in Venezuela when U.S. special forces captured former dictator Nicolas Maduro

“Time is running out, it is truly of the essence! As I told Iran once before, MAKE A DEAL! They didn’t, and there was ‘Operation Midnight Hammer,’ a major destruction of Iran. The next attack will be far worse!” he added. 

Trump for weeks has threatened U.S. intervention over Iran’s treatment of protesters, seeking a regime change. 

Still, Iran has taken steps to raise tensions. Reuters reported that Iran’s Revolutionary Guard Corps naval forces will hold live-fire exercises in the Strait of Hormuz on Feb. 1 and 2. The strait is a crucial oil export route in the region for many oil-producing countries. 

Read more by Maydeen here

A CLOSER LOOK AT THE ENERGY DEPARTMENT’S GREEN LOAN CUTS: Last week, the Department of Energy said it was canceling nearly $30 billion worth of loans for clean energy projects, finalized under former President Joe Biden. The agency also said it was revising an additional $53 billion to support the administration’s energy dominance agenda. 

At the time, the agency did not release a list of the projects and loans affected. Daily on Energy has since obtained a list from the department detailing some. Take a look: 

Closed loans that have been partially de-obligated by DOE

  • Ultium Cells: A $2.5 billion loan for a battery cell manufacturing project, $1.8 billion of which was repaid last year
  • Hestia: A $3 billion loan for a residential rooftop solar project

Closed loans that are being modified by DOE

  • Glencore (Li-Cycle): A $375 million loan for a battery recycling facility project
  • Lithium Americas Corp (Thacker Pass): A $2.26 billion loan for a lithium processing plant for electric vehicle lithium-ion batteries
  • LongPath: A $162.4 million loan for a methane emissions monitoring network project
  • Syrah: A $102.1 million loan for a project expanding a processing facility for critical electric vehicle materials
  • Wabash Valley Resources: A $1.6 billion loan for an ammonia fertilizer plant project 

Conditional loan commitments that have been de-obligated by DOE

  • APS ReCoVR: A $1.8 billion loan to deploy utility-scale clean energy resources
  • Aspen Aerogels: A $670 million loan for a manufacturing facility for thermal barrier for electric vehicle batteries 
  • Grain Belt Express: A $4.9 billion loan for a high-voltage transmission line across the Midwest
  • IRG Erie: A $182 million loan to go towards a plastic recycling facility 
  • JCP&L: A $716 million loan to upgrade and expand transmission infrastructure in New Jersey
  • KORE: A $850 million loan for a battery manufacturing plant 
  • Redwood Materials: A $2 billion loan for an electric vehicle battery project 
  • Vistra (Newton): A $60 million loan for a solar energy project 

The Energy Department told Daily on Energy that additional de-obligations are currently in process but cannot be made public until they are finalized. There are also several other de-obligated projects that have not been made public, the agency added. 

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