THIS WEEK AT A GLANCE
COMMITTEE ACTIVITY
The House and Senate are in a District Work Period through April 13. No committee hearings, markups, or floor votes on energy-related legislation occurred during the week of March 30. The Energy Subcommittee's spring oversight calendar has not been announced. Members return to Washington the week of April 14.
The Endangered Species Committee exemption for Gulf of Mexico oil drillers, the administration's halt of REAP renewable energy grants, and the ongoing Hormuz negotiations are all subjects likely to generate oversight and member activity when Congress reconvenes. PHMSA reauthorization, which received a subcommittee hearing on March 4, remains on the committee's pending legislative agenda.
KEY DEVELOPMENTS
Endangered Species Committee Grants Gulf of Mexico Oil Drillers Rare Exemption
The Endangered Species Committee — a cabinet-level body authorized under the Endangered Species Act and convened only three previous times in U.S. history — met on March 31 and granted Gulf of Mexico oil and gas operators an exemption from endangered species protections. The administration's stated basis was the need to protect oil supply lines amid the Iran conflict and the Strait of Hormuz disruption. The exemption allows drilling operations to proceed in areas where activity would otherwise be restricted to protect listed species.
This is only the third time the committee has granted an exemption since the Endangered Species Act was enacted in 1973. The two prior grants both involved infrastructure projects of significant economic or national security interest. The administration has characterized the current action as a wartime supply measure.
Environmental groups and Democratic members have challenged the framing, arguing that an ongoing military conflict does not satisfy the statutory threshold for the exemption and that the administration is using the Iran war to advance a pre-existing deregulatory agenda. No legal challenge has been filed as of publication.
Puerto Rico Connection
Gulf of Mexico production stability is a factor in the broader U.S. oil supply picture that affects domestic fuel prices. The administration's use of emergency authority to protect offshore production — citing the Iran conflict — reflects the same supply-security logic driving its 202(c) emergency orders for Puerto Rico's grid. Both actions share a statutory basis in federal emergency powers invoked in response to the same underlying geopolitical disruption.
USDA Halts REAP Grant Applications to Rewrite Renewable Energy Subsidy Rules
The U.S. Department of Agriculture halted new applications for its Renewable Energy for America Program (REAP) while it rewrites program rules to comply with executive orders directing federal agencies to eliminate subsidies for renewable energy projects. REAP provides grants and loan guarantees for agricultural producers and rural small businesses to install renewable energy systems and make energy efficiency improvements.
The Biden administration had committed $126 million in REAP funding across 654 projects in 39 states, Puerto Rico, and Guam in October 2024. Those awards are unaffected. The halt applies to new applications only. USDA has not announced a timeline for completing the rule rewrite or reopening applications.
The REAP halt is one of several actions the administration has taken to wind down federal renewable energy subsidy programs, consistent with executive orders issued in January 2025. The program's suspension affects rural agricultural and small business applicants who had anticipated using REAP funding for energy cost reduction.
Puerto Rico Connection
Puerto Rico was among the jurisdictions that received REAP funding in the October 2024 round. New applications from Puerto Rico agricultural and rural business interests are now on hold. USDA has provided no timeline for when applications will reopen or what modifications the rewritten rules will impose. Clients with pending or anticipated REAP applications should monitor USDA's Federal Register notices for any reopening announcement.
OTHER DEVELOPMENTS
Natural Gas Plant Liquids Exports Reach Record High
The U.S. Energy Information Administration reported that natural gas plant liquids exports reached a record 3.1 million barrels per day in 2025, a 7% increase from the prior year. The top five export destinations were China, Japan, Canada, Mexico, and South Korea. The data reflects the continued expansion of U.S. LNG and hydrocarbon export infrastructure and the growing role of American energy exports in global supply chains — a dynamic that has gained further prominence during the Hormuz disruption.
Alabama Power Solar Standby Fee Ruling
A federal court ruled that Alabama Power may continue charging small solar customers standby fees that critics characterize as among the highest in the country. The fees apply to residential customers with rooftop solar installations who remain connected to the grid. Consumer advocates have argued the charges deter adoption by making the economics of solar investment unfavorable. The ruling applies only to Alabama Power's service territory and has no direct regulatory effect on Puerto Rico, though it is consistent with a broader pattern of utility-backed legal efforts to establish the right to charge solar customers for grid access.
Iran / Strait of Hormuz — Negotiations Continue
Diplomatic talks between the U.S. and Iran continued through the week. Trump's pause on strikes against Iranian energy infrastructure, announced March 27, runs through April 6. The Strait of Hormuz remains largely closed to commercial traffic. Brent crude and LNG spot prices have remained elevated. Goldman Sachs has warned that sustained disruption beyond mid-April would accelerate price increases significantly. Puerto Rico's natural gas supply under the NFE Gas Supply Agreement is priced at Henry Hub and is not routed through the Strait, insulating the island's gas generation costs from the spot price spike affecting Asian and European buyers.
LOOKING AHEAD
Upcoming Hearings
Congress remains in District Work Period through April 13. No Energy Subcommittee hearings have been announced for the week of April 14, though that week marks members' return to Washington. PHMSA reauthorization, the Endangered Species Committee exemption, and the administration's use of 202(c) emergency authority are all subjects that could surface on the committee's spring schedule.
On Our Radar
Threads we are monitoring for Puerto Rico impact:
CONTACT
Anthony Maceira, Esq.
Managing Member
amaceira@mzls.com
Maceira Zayas Law
