Everyday Energy News: Democrats Clash with Big Oil, Granholm Debates House GOP, Norfolk Southern Resolves

DEMOCRATS STEP UP ATTACK ON BIG OIL: Democrats stepped up efforts this morning to pin blame for high gas prices on oil executives.

At a press conference this morning outside the Capitol with other members and environmentalist groups, Majority Leader Chuck Schumer blasted oil executives as colluding to raise prices – noting the Federal Trade Commission allegations that former Pioneer Natural Resources founder Scott Sheffield coordinated with OPEC+ competitors on production.

“Instead of working to lower gas prices for Americans ahead of a busy Memorial Day weekend, Big Oil executives are huddling to find ways to keep prices high and their profits soaring,” Schumer said.

Schumer said that he will be sending a letter to the DOJ next week calling for the department to investigate and prosecute “collusion and price fixing” that he says may have increased energy costs.

Democrats also went after oil company support for Trump: Schumer also criticized President Donald Trump’s reported $1 billion request for campaign contributions from oil executives.

Relatedly, this morning Senate Finance Committee Chairman Ron Wyden and Senate Budget Committee Chairman Sheldon Whitehouse also announced that their panels were launching a joint investigation into Trump and the oil companies “conferring on how to trade campaign cash for policy changes.” Their investigation adds to the one overseen by House Oversight Committee Ranking Member Jamie Raskin.

Welcome to Daily on Energy, written by Washington Examiner Energy and Environment writers Breanne Deppisch (@breanne_dep) and Nancy Vu (@NancyVu99). Email bdeppisch@washingtonexaminer dot com or nancy.vu@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.

REPUBLICANS SPAR WITH GRANHOLM DURING HEATED OVERSIGHT HEARING: House Republicans grilled Energy Secretary Jennifer Granholm this morning over the Biden administration’s energy policies—taking aim at its LNG pause, its electric vehicle push, and its energy appliance standard updates during her appearance before the Oversight Committee.

Granholm faced scathing criticism over the department’s pause on new LNG export terminals—both from the committee’s chairman, James Comer, and Rep. Clay Higgins, the Louisiana Republican whose district is home to the massive Calcasieu Pass 2 LNG export terminal (CP2), which was stalled as a direct result of the pause.

Higgins repeatedly accused DOE of violating its statutory authority under the Natural Gas Act in pausing approvals to conduct an environmental assessment on LNG. The law allows DOE to pause activity to conduct such assessments if it can be determined the activity is outside the public interest—a bar Higgins said the administration has not yet met.

This pause, he said, is “illegal” and “jeopardizes billions of dollars of interest, American jobs, American families, and a clean, reliable energy source that contributes to our national security, energy security, and world security by our allies.” Other Republicans said the pause risk global energy security and drive allies into the hands of Russia and other adversaries.

Granholm also faced questions over DOE’s new energy efficiency standards for home appliances, including gas stoves, washing machines, and residential refrigerators, among others—which Republicans argued yielded “meager, unquantified benefits” compared to the “massive cost of the burdens imposed on American manufacturers and consumers.”

Her responses—that DOE’s pause on LNG terminals would be lifted by early 2025, that the efficiency standards will save Americans $2 trillion in energy savings over time—were largely interrupted by members of the committee. Watch it in full here.

NORFOLK SOUTHERN EAST PALESTINE SETTLEMENT: The Environmental Protection Agency and the Department of Justice reached a $310 million settlement with Norfolk Southern today over its disastrous train derailment last year in East Palestine, Ohio.

As part of the settlement, Norfolk Southern agreed to spend an estimated $235 million for clean-up, $25 million for a 20-year community health program, $30 million for monitoring water quality, and $6 million for a “waterways remediation plan” to prioritize addressing historical pollution.

Along with the settlement, the company estimates that it will spend more than $1 billion to address the contamination and other harms caused by the East Palestine derailment. That total includes measures the company will take to improve rail safety, along with a yearslong effort to provide medical monitoring and mental health services for affected residents and environmental remediation.

Under the agreement, which still needs court approval, the company would have to pay a $15 million civil penalty to resolve alleged violations of the Clean Water Act. In a call with reporters, a Justice Department official noted that Norfolk Southern would not be expressing liability but called the settlement a “very positive step that holds Norfolk Southern accountable for the derailment.” Read more from Nancy here.

JUDGE GREENLIGHTS EXXON CASE AGAINST CLIMATE ACTIVIST INVESTOR: Exxon Mobil will be allowed to proceed with its case against a climate change activist investor, thanks to a ruling yesterday from U.S. District Judge Mark Pittman for the Northern District of Texas, CNBC reports.

The background: Exxon sued to stop activist investors, Boston-based Arjuna Capital and Netherlands-headquartered Follow This, from filing an emissions-related shareholder resolution – even after the groups withdrew the proposal. Exxon said clarity was needed regarding Securities and Exchanges Commission rules to prevent similar resolutions from being filed in the future.

Exxon has taken flak for the move, with CalPERS seeking last week to have its board removed in response.

Yesterday’s ruling: Pittman, who was appointed by Donald Trump, said that Exxon was acting reasonably, calling its suit a “rational response to entities categorically opposed to Big Oil.” He denied Arjuna Capital’s motion to dismiss the suit, but granted it for Follow This on the basis that it is not headquartered in the U.S.

TECH FIRMS FORM NATURE-BASED CARBON CREDIT PURCHASING GROUP: Google, Meta, Microsoft, and Salesforce have banded together to commit to buying 20 million tons of nature-based carbon removal credits – an amount equivalent to the 2030 carbon removal targets of California.

Their group, Symbiosis, said in a press release that by joining to offer advance market commitments for carbon removal – that is, promises to buy credits before they’re available, they will send a “strong demand signal and a willingness” that the market will support such technologies. The group will initially focus on forest and mangrove restoration.

A number of tech companies, including Meta and Alphabet, are already members of Frontier, an advance market commitment to buy $1 billion-plus of carbon removal through 2030.

NOAA ISSUES RECORD HURRICANE FORECAST: NOAA’s hurricane season forecast, released this morning, predicts 17 to 25 total named storms, which surpasses the 14-23 projected ahead of the 2010 season.

Of those storms, eight to 13 are projected to become hurricanes, including four to seven major hurricanes.

NOAA said there was an 85% chance of above-normal hurricane activity, thanks to “near-record warm ocean temperatures in the Atlantic Ocean, development of La Nina conditions in the Pacific, reduced Atlantic trade winds and less wind shear, all of which tend to favor tropical storm formation.”

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