Energy industry lobbying spending declined in the second quarter of the year, federal disclosures show, with Congress dithering as it entered election season, Nick writes.

Why it matters: There's still intense behind-the-scenes interest in hydrogen tax credits, permitting legislation and, increasingly, AI's power suck.

Driving the news: The priorities remain largely the same for industry, with environmental permitting and the 45V hydrogen tax credit showing up frequently in Q2 disclosures.

• But overall spending was down for many companies and trade groups.

Zoom in: The Edison Electric Institute reported spending $2.2 million, roughly half what it spent in Q1, lobbying on approps, hydrogen, permitting and regs.

• Exxon Mobil spent $1.5 million, down from nearly $2.2 million in the first quarter, with notes in its disclosure on permitting, trade, IRA implementation and other issues.
• The American Clean Power Association reported $630,000 in lobbying spending, an increase of more than $200,000 over Q1 and its highest total since 2017, when it was known as the American Wind Energy Association.

Fun fact: Exxon also recently tapped several former Democratic staffers to lobby, including Eulice Brandon Garrett, a former policy staffer for the Congressional Black Caucus and then-Vice President Joe Biden.

By the numbers: Here are the toplines from other notable players across industry:

• American Petroleum Institute: $1.7 million in Q2, compared with $1.8 million in Q1
• Solar Energy Industries Association: $460,000 in Q2, down from $480,000 in Q1
• Nuclear Energy Institute: $480,000 in Q2, up from $390,000 in Q1
• American Chemistry Council: $4.8 million in Q2, compared with $4.9 million in Q1
• Shell USA: $2.1 million in Q2, up from 1.6 million in Q1
• Chevron: $2.1 million in Q2, compared with $1.8 million in Q1.
• ConocoPhillips: $710,000 in Q2, down from $3.2 million in Q1
• Southern Company: $2.4 million in Q2, compared with $3.3 million in Q1
• Constellation: $1 million in Q2, down from $1.5 million in Q1.
• Duke Energy: $1.3 million in Q2, compared with $2.3 in Q1.

Yes, but: These disclosures don't always show exactly what's going on, since companies don't disclose what they're saying about a given issue.

• The quarterly topline spend sometimes reflects how an organization handles its accounting for the year, or what's going on in Congress and the relevant agencies.

Between the lines: Still, they do show fossil fuel companies lobbying on Congressional Review Act resolutions to overturn Biden administration rules.

• The American Petroleum Institute lobbied in the second quarter on CRAs to nix EPA's NAAQS, power plant greenhouse gas and vehicle emissions regulations.
• Another topic getting more attention each quarter from utilities: AI and data centers.
• EEI reported lobbying on "artificial intelligence issues" and "load growth and resource adequacy," while Constellation was talking about "data center policy" and "electrification/demand growth policy."

Our thought bubble: The end of this year might see a fury of lobbying on permitting, with Sens. Joe Manchin and John Barrasso likely looking to move their freshly unveiled bill during lame duck.

With the energy and environment approps bills set to hit the House floor, let's take a quick look ahead at negotiations with the Senate, Nick writes.

Why it matters: House Republicans are proposing more cuts that could make for tough talks with the upper chamber.

What we're watching: In the Energy-Water title, subcommittee Chair Chuck Fleischmann is trying to repurpose money from DOE's Loan Programs Office to instead dole out $9 billion for three advanced nuclear demo projects.

• That's going to be controversial, even among Dems who support nuclear. Rep. Marcy Kaptur proposed an amendment to change the provision in committee.
• Fleischmann says there's "no question" the Senate would have to do something similar if it wants these projects funded under the caps.
• "If we had not done that, fiscally, we would have been in a position where we would have had to cancel one or two of those programs," he told Nick.

Friction point: The Interior-Environment bill proposes a 20% cut to EPA.

• "I suspect that it won't be a 20% cut" after negotiations with the Senate, subcommittee Chair Mike Simpson told Nick.
• Simpson noted that they accommodated tons of member requests for earmarks.
• He said his goal overall goal is to rein in EPA as it pursues air and water regulations and implements IRA spending.

Helena Fu, director of DOE's Office of Critical and Emerging Technologies, sees a "golden moment" for AI in the energy transition, Nick writes.

Why it matters: Her office is a huge piece of the federal government's efforts to advance the technology via the Frontiers in Artificial Intelligence for Science, Security and Technology (FASST) initiative.

Driving the news: The rise of power-hungry data centers could aid the energy transition, given tech companies' commitments to low-carbon power, Fu said this morning at Axios' Sustainable AI event.

• "We think that this is really a critical, golden moment and opportunity to pair the demand from data centers for training AI with many of these companies' commitments to clean firm power to really supercharge the deployment of clean energy," she said.
• She added that the Senate bill to codify FAAST "reflects essentially what we think is going to be needed" to move forward on AI.

What we're watching: Energy Secretary Jennifer Granholm has asked her advisory board to examine AI's power demand, Fu said.

• "They're going to be doing a public briefing for her next week," she said. "Across the department we are very much focused on this issue."

📝 1. Manchin mania: Manchin and Barrasso's permitting bill is getting plaudits from both fossil fuel and renewable energy companies.

• ACP CEO Jason Grumet said he looks forward "to moving this measure across the finish line."
• And an early take from the House: "There's pieces I like in it.… Interregional is critical," Rep. Sean Casten said during our event this morning.
• Not everyone is pleased, though. "While this bill would offer some steps forward on transmission reform, which we hope to help usher forward, this bill would altogether be a leap backward on climate, health and justice if passed into law," said NRDC's Alexandra Adams.

⚡️ 2. Bipartisan grid love: Rep. Bob Latta, an aspirant for E&C chair, introduced a bipartisan bill with Rep. Doris Matsui yesterday to more closely examine risks to the grid from extreme weather and cyberattacks.

💵 3. Copious climate cash: EPA announced selections for $4.3 billion in Climate Pollution Reduction Grants under the IRA.

• That includes lots of money to reduce emissions in GOP states like Montana and Nebraska.