Daily on Energy: White House considers extending Jones Act waiver, despite GOP pleas

WHAT’S HAPPENING TODAY: Good afternoon and happy Wednesday, readers! France suffered a crushing defeat at the hands of Spain yesterday, ending Kylian Mbappé’s quest for another World Cup. England is facing off against Argentina this afternoon, could it be coming home?

Over the last few weeks, we’ve reported on how there is a growing number of Republicans in the House calling for the Jones Act waiver to expire. Yet the White House appears to be considering extending it once again.

Meanwhile, we are continuing to follow the escalation in the Middle East, with Iran threatening to close additional oil and gas export routes.

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.

COULD WE SEE A THIRD JONES ACT EXTENSION?

The White House is considering extending the Jones Act waiver as the war in Iran continues to disrupt global oil and gas supply chains.

White House officials and administration officials meet this week to discuss the possibility of a third extension of the Jones Act waiver, Bloomberg reports.

The Trump administration first issued a waiver to the Jones Act in March, allowing for refineries to use foreign-flagged ships to transport fuel between U.S. ports. The administration extended the waiver in April, with an expiration date of Aug. 16. The waiver is part of the administration’s efforts to lower oil and gasoline prices elevated by the war in Iran.

A White House official told Daily on Energy that no decision has been made on a third waiver extension.

“President Trump’s decisive action to waive the Jones Act has helped prevent supply chain shortages across the country. The administration is regularly monitoring how the waiver is being used,” the official said.

However, some Republicans have asked the administration to allow the waiver to expire.

More than 50 Republicans sent a letter to President Donald Trump asking for the waiver to end, arguing the Jones Act is essential to supporting the U.S. shipping and maritime industry.

IRAN CONFLICT ESCALATES:

The Iranian Revolutionary Guard said the Strait of Hormuz would remain closed until the U.S. ends its attacks and has threatened to close off other oil and gas export routes that are essential to the U.S. and its allies, NPR reports.

Iran did not directly reference which route it would close. But it has previously threatened to close the Bab al-Mandab Strait, which is a gateway to the Red Sea that connects to the Gulf of Aden.

The U.S. military plans to continue strikes today. U.S. Central Command has accused Iran of attacking several commercial ships and neighboring Gulf countries.

Markets stable…for now: Despite the escalations, oil prices stayed fairly steady today, with international and domestic benchmarks sticking around the $80 a barrel line.

Around 2:30 p.m. EDT, Brent crude dropped just 0.08%, selling at $84.66 a barrel. West Texas Intermediate was also slightly down, by 0.11%, and priced at $79.25 a barrel.

While prices are relatively unchanged compared to yesterday, some analysts still say that the markets are on an upward trajectory, with prices slowly heading back to levels seen before the memorandum of understanding was signed in June.

A warning: “The hostilities and reimposed blockade set the conflict back on an escalatory trajectory,” MST Marquee senior energy analyst Saul Kavonic told CNBC. “Oil could retest $100 if the current intensity of hostilities persist for a few weeks, or head higher still if regional oil infrastructure is targeted.”

All the rest

TRUMP BLASTS NEW YORK DATA CENTER BAN: President Donald Trump lambasted the state of New York today over its decision to ban the construction of large data centers, accusing state leadership of imposing the moratorium for “political reasons.”

“One of the biggest Driving Forces in the Future for Jobs, are Data Centers,” Trump said. “They are big, strong, bold, and Money Machines for the State in which they are built. Governor Kathy Hochul, for political reasons, has terminated all Data Centers being built, or to be built, in New York State.”

He insisted that other states, including Alabama, Florida, Texas, and Arizona, are pursuing data centers like “cash cows,” calling the facilities “tremendous WINS” for states and local communities.

“New York should change its Policy, IMMEDIATELY,” the president said. “The Radical Left Dumocrats must not be allowed to cause us to lose Data Centers, AI, and all of this incredible new Technology, to China, and other countries!”

Need a reminder? In yesterday’s newsletter, we wrote that Democratic New York Gov. Kathy Hochul signed an executive order to impose a one-year statewide moratorium on data centers that use 50 megawatts or more of energy. The moratorium is in response to growing concerns over data centers’ use of water and energy, as well as noise pollution.

ENERGY LEFT OUT OF RECONCILIATION BILL: Energy and environmental policy provisions are not included in the House’s blueprint for the upcoming budget reconciliation package.

Earlier this summer, House Natural Resources chairman Bruce Westerman told E&E News that his committee would be involved in the creation of the bill, saying energy “is where the big pay-fors are.” He pointed to increased oil and gas lease sales on federal lands as a big driver for balancing the budget.

Yesterday, his tune changed.

“Apparently there’s not going to be any pay-fors the way the bill is right now,” he told the outlet.

Earlier today, the House Budget Committee released its blueprint for the bill and, as expected, it does not include any spending instructions for the relevant energy and environment committees.

Quick note: The reconciliation process allows Republicans to pass their successor to the One Big Beautiful Bill with a simple majority, meaning it would be able to pass in the Senate with a 51-50 vote, with the vice president breaking the tie by voting in favor. Without any energy or environment provisions, this budget would stand starkly against the bill signed into law last year, as one of its hallmarks was the reversing of major clean energy tax credits established by the landmark climate mitigation-focused Inflation Reduction Act in 2022.

GERMANY CUTS CLIMATE FUND BY OVER $32 BILLION: Germany plans to cut more than $32 billion from its climate fund through 2030.

The government plans to reduce its climate and transformation fund by about $22.5 billion and transfer an additional $15.1 billion into the federal budget within the next four years. The plan was approved by the cabinet today, Bloomberg reported. Heat pumps and electric vehicle subsidies are among the programs being cut.

The annual budget for the fund is expected to remain around $45.7 billion before declining to about $43.4 billion in 2030.

ICYMI, ENVIRONMENTAL GROUPS SUE ADMINISTRATION OVER ENDANGERED SPECIES ACT ROLLBACKS: Nearly 10 environmental organizations are suing the Trump administration over its decision to soften protections for endangered species habitats.

Quick reminder: Late last week, the Interior Department said it was changing the federal definition of “harm” under the ESA, a move that could open up habitats of imperiled plants and animals to drilling and mining. The definition was first established in 1981, ruling that modifying or destroying an imperiled species habitat was illegal under the ESA.

Who’s pushing back: The Center for Biological Diversity, Columbia Riverkeeper, the Conservation Law Foundation, Conservation Northwest, Friends of the Wild Swan, Oregon Wild, the Sierra Club, the Swan View Coalition, and WildEarth Guardians filed a lawsuit against the administration today.

They argue the decision “discards a longstanding and critical regulatory protection for

imperiled wildlife based upon an irrational and unsupported interpretation” of the ESA that will undermine the law’s record of preventing the extinction of endangered species.

Read the full lawsuit here.

RUNDOWN

Inside Climate News Governments Knew the Risks of Global Warming as They Chose Fossil-Fueled Growth in the 1950s and ’60s

The Guardian US trial could reveal who paid hackers to target Exxon climate critics: ‘on the edge of our seats’

Associated Press Battery bank or generator? How to choose the best backup power for your home during an outage