California crushes VPPs

This roundup of U.S. energy news headlines is part of our Canary Media Daily newsletter. Sign up to get it in your inbox each morning.

HYDROGEN

• The Trump administration might be preparing to cut yet more federal clean energy awards, including funding for hydrogen hubs and direct-air carbon capture hubs, though the Energy Department denies it’s made a final decision yet. (E&E News)

ELECTRIC VEHICLES

• Tesla announces a cheaper version of its Model Y SUV and its Model 3 sedan, both with base models starting below $40,000. (CNBC)

• New federal tariffs will cost automakers about 20% of their profits this year, Moody’s estimates. (E&E News)

COAL

• The U.S.’s newest coal-fired power plant, Sandy Creek in Texas, will likely remain offline until March 2027 after experiencing what appeared to be a major failure earlier this year. (IEEFA)

• The Navajo Transitional Energy Company bids $186,000 — less than one cent per ton — for a 1,262-acre federal coal lease in southeastern Montana, emphasizing the fuel’s diminishing value even as the Trump administration looks to bolster the industry. (Associated Press)

CLEAN ENERGY

• The Hopi Tribe in Arizona is forced to significantly downsize a plan to install rooftop solar and batteries at about 600 homes after the Trump administration rescinds $25 million in federal funds. (KPBS)

• Oregon Gov. Tina Kotek orders state agencies to fast-track proposed solar and wind project permitting to take advantage of federal clean energy tax credits before they expire next year. (OPB)

DATA CENTERS

• DNV forecasts energy demand for data centers will account for 16% of electricity use in Canada and the U.S. by 2040, though it’s unlikely to exceed 3% of global power demand. (Axios)

EFFICIENCY

• Efficiency programs in New England and New York are set to save residents tens of billions of dollars, even as states face pressure to cut spending on such efforts in the name of short-term bill savings, a new report concludes. (Utility Dive)

• U.S. Census data shows states’ adoption of stronger building codes in recent years have not hampered housing construction. (ACEEE)

OFFSHORE WIND

• Litigation over the future of the US Wind project off Maryland will continue amid the federal government shutdown despite the Trump administration’s request to pause the proceedings, a judge rules. (E&E News)

• The developers behind SouthCoast Wind, one of the projects in Trump’s crosshairs, argue in court filings that the administration’s attempts to undercut the offshore wind industry are purely political and ​“have no genuine legal basis.” (Vineyard Gazette)

STORAGE

• A Kentucky hospital and other facilities around the U.S. are using tanks of ice to provide emission-free air conditioning, reduce electricity usage, and reduce demand on the power grid. (Associated Press)

PIPELINES

• A federal report finds Mountain Valley Pipeline’s proposed Southgate spur from Virginia into North Carolina won’t significantly affect environmental quality, but could be redundant with the Williams Companies’ Transco pipeline expansion. (NC Newsline)