Texas Legislators Grant Renewables a Reprieve

Current conditions: The first named tropical storm of the year appears to be forming in the Pacific Ocean as Tropical Storm Alvin • Northern California braces for temperatures as high as 100 degrees Fahrenheit this weekend • It’s cloudy and cool in Manhattan, where Wednesday night the Court of International Trade threw out much of Trump’s tariff regime.

THE TOP FIVE

1. Texas anti-renewables bills won’t get crucial vote

A suite of bills in the Texas legislature that targeted the state’s booming renewable energy sector will not make it to the governor’s desk after the state’s House of Representatives declined to schedule votes on them before the Texas legislature’s biennial session ends on Monday, The Hill reported.

The Texas Senate had passed S.B. 819 in April, which would have mandated extra regulatory approval for large solar and wind projects, over and above what fossil fuels are required to seek. The Senate also passed S.B. 388, which would have essentially mandated that more than half of new generation in the state would be gas, and S.B. 715, which would have required existing wind and solar generation to have gas backup. Trade groups were “in freak-out mode,” my colleague Jael Holzman reported at the time, and the head of one renewables group testified that S.B. 819 alone would “kill” the industry.

2. D.C. energy veteran gets permitting gig

Emily Domenech, a former staffer for House Speakers Kevin McCarthy and Mike Johnson, will head the federal government’s Permitting Council, Politico reported Wednesday.

The Permitting Council was established as part of the Highway Bill in 2015 as the Federal Permitting Improvement Steering Council, and helps coordinate permitting for infrastructure projects that require multiple layers and stages of federal regulatory and environmental review.

Domenech also helped negotiate permitting reform provisions in the 2023 Fiscal Responsibility Act. More recently, she has been a senior vice president at the energy and environment public affairs firm Boundary Stone.

I spoke with Domenech last year after the presidential election for a story about how the clean energy industry could “learn to speak Republican.” In the past, she told me, “clean energy hasn’t focused on getting to know those representatives. When they’ve had ideas for bills or policies, they went to Democrats. They haven’t built a lot of personal relationships with members of Congress on the other side of the aisle.”

3. Climate lawsuit rejected, principle behind it affirmed

A Peruvian farmer’s lawsuit against the utility RWE for its contribution to the risk of glacial flooding was rejected by a German court, The New York Times reported Wednesday.

The farmer, Saúl Luciano Lliuya, had sued in Hamm Higher Regional Court, arguing that emissions from RWE increased glacial melting and threatened the inundation of his town of Huaraz.

RWE does not operate in Peru, but the suit argued that it was responsible for 0.5% of global emissions, and thus should be responsible for that portion of the cost of protecting the town from flooding, about $19,000. The judge dismissed the suit but “affirmed that German civil law could be used to hold companies accountable for the worldwide effects of their emissions,” the Times reported.

Lliuya’s lawyer hailed the decision, saying in a statement, “For the first time in history, a higher court in Europe has ruled that large emitters can be held responsible for the consequences of their greenhouse gas emissions.”

RWE warned that the decision could “have unforeseeable consequences for Germany as an industrial location, because ultimately claims could be asserted against any German company for damage caused by climate change anywhere in the world.”

4. Constitution revived

A fracking site in the Marcellus Shale. Spencer Platt/Getty Images

The Williams Companies is planning to start the process of permitting formerly dormant pipeline projects in New York state, the Wall Street Journal reported.

The two pipelines, the Constitution and Northeast Supply Enhancement, were canceled in 2020 and 2024, respectively, following intense environmental and local opposition.

The Northeast is adjacent to productive natural gas fields in the Marcellus Shale in Pennsylvania, but does not have fully built out infrastructure for shipping gas from Pennsylvania to New York and beyond. The Constitution pipeline would have run from Northeast Pennsylvania to Schoharie, New York, outside Albany. The Northeast Supply Enhancement would have augmented existing infrastructure that runs from Lancaster County, Pennsylvania through New Jersey, and would have included new pipelines under New York Bay to supply gas to New York City and Long Island.

The move to restart the projects comes after President Trump allowed work to restart on the Empire Wind 1 offshore wind project off the south coast of Long Island. While New York Governor Kathy Hochul never directly said there was quid pro quo for the pipeline, she did say in a statement at the time that she would “work with the Administration and private entities on new energy projects that meet the legal requirements under New York law.”

5. Fed scraps climate groups

The Federal Reserve has gotten rid of a number of working groups and internal organizations dedicated to climate change, Bloomberg reported Wednesday. These include the Supervision Climate Committee, founded in 2021, which the Fed said then would “further build the Federal Reserve’s capacity to understand the potential implications of climate change for financial institutions, infrastructure, and markets.” The other groups eliminated are the Financial Stability Climate Committee, the Climate Committee on Economic Activity, and the Climate Data Committee.

The central bank’s actions are part of a government wide push to de-emphasize climate change in policymaking and official communications. Days before President Trump’s second inauguration, the Fed said that it had withdrawn from the Network of Central Banks and Supervisors for Greening the Financial System. In a statement, the Fed said that the group had “increasingly broadened in scope, covering a wider range of issues that are outside of the Board's statutory mandate.”

The central bank will continue to “assess climate risk as part of its business-as-usual activities,” Bloomberg reported.

THE KICKER

“Abruptly ending the energy tax credits would threaten America’s energy independence and the reliability of our grid - we urge the senate to enact legislation with a sensible wind down of 25D and 48e,” Tesla Energy’s Twitter account posted Wednesday night, in reference to tax credits for home purchases of solar and storage energy systems and investments in clean energy systems respectively. The post came hours after news broke that Tesla CEO Elon Musk would be leaving the Trump administration.