Secretary of State Marco Rubio was all over TV yesterday with a consistent message: Don't expect new U.S energy sanctions against Russia anytime soon, but never say never.

Why it matters: Fresh penalties could raise oil prices while putting new pressure on Russia's massive fossil fuel export revenue.

• President Trump has threatened stiff tariffs on buyers of Russian oil and gas, but that appears more remote after his meeting with Vladimir Putin on Friday.
• China, the largest importer of Russian barrels, would face the most jeopardy under so-called secondary sanctions.

The intrigue: The exception is India, another large buyer. Secondary tariffs, announced earlier this month amid wider trade frictions, are slated to begin Aug. 27.

• White House trade adviser Peter Navarro today put fresh pressure on India to stop purchasing Russian barrels.

Driving the news: Rubio told all the major networks that new sanctions to penalize Russia won't help bring peace in Ukraine.

• "The minute you levy additional sanctions, strong additional sanctions, the talking stops," he told ABC's "This Week."
• "And at that point, the war just continues. You've probably just added six, eight, nine, 12 more months to the war, if not longer. More people dead, more people killed, more people maimed, more families destroyed."

Yes, but: He said in the Sunday show interviews that new sanctions may ultimately arrive if peace talks fail.

What they're saying: "Would Trump return to sanctions and tariffs (or at least a mention of them) if the process appears to be stalling? We would not rule it out," ClearView Energy Partners said in a note.

• "[B]ut we still think broad secondary measures seem unlikely, and that Trump might be more inclined to direct new Russia sanctions at 'shadow fleet' tankers and/or LNG exports."

Catch up quick: Trump himself seemed to discount the possibility in an interview with Fox News' Sean Hannity after meeting with Putin.

• "Well, because of what happened today, I think I don't have to think about that now. I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now," he said.

Friction point: Over 80 senators support Sen. Lindsey Graham (R-S.C.) and Richard Blumenthal's (D-Conn.) bill that would hit Russian energy buyers with giant new tariffs.

• Graham, in a Fox News interview yesterday, praised Trump's meeting and argued the planned penalties on India "rattled" Putin and brought him to Alaska.
• But he urged wider attempts to curb Russia's huge fossil fuel export revenues.

"My advice to President Trump and Marco [Rubio] is that you've got to convince Putin that if this war doesn't end justly and honorably, with Ukraine making concessions also, we're going to destroy the Russian economy," Graham said.

• He called on Europe to put new tariffs on India and threaten new ones against China over Russian energy imports.

What's next: It's all fluid, so we'll see what comes out of today's White House meeting with Ukrainian President Volodymyr Zelensky and European leaders.

The Treasury Department's new plan to implement the phaseout of renewable power tax credits drew quick industry criticism — but isn't as restrictive as companies feared.

Why it matters: Treasury "guidance" determines whether wind and solar projects can tap longstanding federal tax credits.

• The 2022 Inflation Reduction Act extended the subsidies and made them more generous, but the big GOP fiscal law enacted last month winds them down.

Driving the news: The Treasury policy dropped Friday afternoon takes an "unexpectedly lenient approach," TD Cowen analysts said in a note.

• Industry was bracing for even tighter restrictions after Trump's July executive order telling Treasury to crack down.
• Shares of various companies in the solar value chain jumped Friday on the news.
• Some wind companies and funds like turbine-maker Vestas also saw gains, though that tech faces an expanding array of policy hurdles under Trump.

State of play: Under the budget law, projects must start construction by July 4, 2026 or begin operations by the end of 2027 in order to access federal subsidies.

• The guidance generally ends the ability of companies to meet that construction standard by spending at least 5% of project costs.
• However, the "5% safe harbor" remains for rooftop solar systems (technically it's maintained for "low output" facilities up to 1.5 megawatts).
• Also, the policy is not retroactive, while the firm McGuireWoods notes that Treasury "has given deference to the historical and plain meaning of the term beginning of construction."

What they're saying: Renewable power groups nonetheless called the guidance more restrictive than the text of the underlying new law.

• "The Treasury Department's decision to accelerate the phase out of clean energy tax credits undermines the integrity of our energy grid and our legislative process," Jason Grumet, CEO of the American Clean Power Association, said in a statement.

The bottom line: Analysts see the new law ultimately slowing renewables growth, but Treasury's implementing rules are a rare glass half-full(ish) for wind and solar under Trump 2.0.

A company seeking to open a temporary storage site for commercial nuclear waste acknowledged that New Mexico's political opposition has at least temporarily clouded its prospects.

Why it matters: Holtec International said a Supreme Court ruling in June over waste storage reaffirmed the company's license from the Nuclear Regulatory Commission to pursue the site in southeastern New Mexico.

Driving the news: Holtec, however, said in a July 28 letter to the project's local supporters that opposition from the New Mexico Legislature and Democratic Gov. Michelle Lujan Grisham was a hindrance.

• "Unfortunately, the passage of state legislation that effectively prohibits the construction of the [site], combined with the continued public opposition expressed by New Mexico's current administration, has made further advancement of the project impossible in the near future," William F. Gill, Holtec's vice president and general counsel, said in the letter.

Full story

💵 Roughly 20 states are suing DOE over recently imposed caps on "indirect" costs — like facilities and administration — that go alongside state funding.

• State of play: The complaint led by New York's AG claims DOE's limit of 10% of total awards has "conclusory and arbitrary reasoning," and the AGs allege it jeopardizes the ability to keep state energy programs running.
• The other side: DOE, when unveiling the cap in May, said it would "improve efficiency and curtail costs where appropriate" and further more responsible management of federal money.

🚛 The Justice Department is suing California to block the state's enforcement of emissions standards for trucks.

• Why it matters: It's the latest battle between Trump and Democratic Gov. Gavin Newsom over whether California has the right to set tighter pollution limits than federal law requires. Full story.

☀️ Via Reuters, "U.S. solar company T1 Energy and specialty glass maker Corning have reached a deal that will establish a fully domestic solar supply chain, connecting polysilicon, wafers, cells, and panels manufactured in the United States, they said on Friday."

🔋 Copenhagen Infrastructure Partners bought the Beehive Battery Energy Storage System, a project under construction in Arizona, from EDF Power Solutions North America.

• Why it matters: Acquisition of the project, which will have the capacity to supply 250 MW for 4 hours, comes as power demand is rising in the Southwest.

"If we want to win, we need a fundamental recalibration. Climate can no longer be a separate cause. It must be the context for making people's lives better. It has to feel like relief. Like opportunity. If a solution doesn't make everyday life better, it's not the right place to lead."

Why it matters: The climate movement, which is really many movements, is obviously trying to adapt to Trump 2.0.

• That said, I'd point out that trying to frame climate solutions around core economic needs is not new. At all.