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Adaptation

Trump Is Downsizing Disaster Aid

On job cuts, long-term planning, and quarterly profits.

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Trump Is Downsizing Disaster Aid
Heatmap Illustration/Getty Images

Current conditions: Schools in South Sudan are closing for two weeks due to a heatwave that has caused students to collapse • Unusually heavy snow in Virginia and North Carolina led to hundreds of car accidents • An atmospheric river will bring heavy rain to the Pacific Northwest this weekend.

THE TOP FIVE

1. Trump slashes disaster recovery team

The Trump administration plans to dramatically cut staff at a key office responsible for dispensing disaster recovery aid. The Office of Community Planning and Development, which is part of the Department of Housing and Urban Development, will be cut to 150 people, down from 936, according to The New York Times. The news follows hundreds of personnel cuts at the Federal Emergency Management Agency, which are expected to hamper disaster relief disbursements and rebuilding efforts around the country. NPR is also reporting that FEMA will no longer weigh in on the development of building codes and has taken its name off recommendations it made under the Biden administration.

A member of the FEMA Urban Search and Rescue Task Force in Asheville, North Carolina after Hurricane Helene.A member of the FEMA Urban Search and Rescue Task Force in Asheville, North Carolina after Hurricane Helene.Mario Tama/Getty Images

2. Oxy CEO talks up DAC

Occidental CEO Vicki Hollub talked up the opportunity to use carbon captured from the air to get more oil out of the ground during the company’s earnings call this week. Hollub told investors that the use of captured CO2 for enhanced oil recovery would be similar to the shale revolution in unlocking billions of barrels of oil. “There's not enough organic CO2 in the country to be able to flood all the things that we're going to need to flood to get that 50 billion to 70 billion barrels,” she said. “And so taking CO2 out of the atmosphere is a technology that needs to work for the United States.” Hollub didn’t speak to the status of Occidental’s $500 million Department of Energy award to build a direct air capture hub in Texas, but she asserted that “President Trump knows the business case” for subsidizing these projects.

3. Regulators rule on Illinois gas pipeline program

Utility regulators ordered the Chicago utility People’s Gas to scale back its pipeline replacement program on Thursday and only replace the highest-risk infrastructure. The ruling came after a yearlong investigation into the program, which had run over-budget and behind schedule and had yet to reduce pipeline failure rates. At the rate it was going, the program wouldn’t have been completed until 2049, “right around the time that a lot of us think we should be stopping to use the gas system,” Abe Scarr of the Illinois Public Interest Research Group told me in 2023 when the investigation commenced. Scarr applauded Thursday’s ruling, stating that regulators “directed Peoples Gas to run a program that costs less, makes us safer, and facilitates the transition to cleaner energy.”

4. Xcel Energy is ahead of schedule

Xcel Energy, the largest utility in Minnesota, says it will deliver 100% carbon-free electricity to customers in the state five years ahead of the state’s 2040 deadline. The utility’s long-term plan, which Minnesota regulators approved on Thursday, involves shutting down coal plants, extending the life of its two nuclear plants, and building more wind, solar, and batteries, including a pilot program with the heat battery company Rondo Energy. Xcel had originally proposed building six new natural gas plants, but the plan was pared back to building just one that will operate 5% to 10% of the year to meet peak demand. The state’s clean energy law allows Xcel to burn natural gas as long as it also generates enough carbon-free power to cover its customer demand.

The plan is expected to save customers money compared to Xcel’s original proposal, but that calculus includes the tax credits for renewable energy that the Trump administration may or may not kill.

5. Grok update includes climate denial

Grok 3, the latest iteration of the artificial intelligence chatbot developed by Elon Musk’s xAI, appears to have been trained to spew climate denial. Andrew Dessler, a climate scientist at Texas A&M University, posed the same question — “Is climate change an urgent threat?” — to the beta version of Grok 3 and to its predecessor Grok 2. Dessler posted screenshots of the two responses on Bluesky. Grok 2 responded, “Yes, climate change is widely regarded by scientists, governments, and international organizations as an urgent threat to the planet,” and went on to provide evidence of climate change and its impacts. Grok 3, meanwhile, said that climate change was “a complex issue.” While “the mainstream scientific consensus…says it's a big deal," the chatbot said, “some argue the urgency is overhyped,” and that climate change is “more of a manageable shift we’re overreacting to.”

THE KICKER

U.S. electric vehicle maker Rivian achieved its first quarterly gross profit of $170 million in Q4 of last year, beating expectations.

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Hotspots

Meta Data Center Federal Pipeline Review Due Early Next Year

And more of the week’s top fights around development.

The United States.
Heatmap Illustration/Getty Images

1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.

  • On Wednesday, the Federal Energy Regulatory Commission laid out plans for an environmental assessment of the Entergy pipeline for the Meta data center under the National Environmental Policy Act and stated it’ll be issued in early January 2027. Federal agencies have been ordered by the panel to complete any remaining decisions on authorizations by April.
  • The decision to do an environmental assessment under NEPA will be controversial. The Sierra Club filed comments to FERC stating they wanted an environmental impact statement instead that took into account the environmental impacts of the data center being fed by the pipeline, as well as a review of the project’s cumulative impacts, as the activist group said they’re explicitly linked to the data center’s operations. “The power stations and data center are not remote or speculative developments unrelated to the proposed action,” their comments read.
  • This is quite similar to what’s playing out with the Green Chile pipeline in New Mexico for Oracle and OpenAI’s Project Jupiter, which we recently explained could turn into litigation with high stakes for future gas pipelines linked to data centers. But to me, this conflict with Meta feels like it has more at stake for this individual project, as it’s playing out while construction on gas power plants for the data center has been underway for almost a year after earlier being blessed by state regulators.
  • I asked Sierra Club what could happen next. Eric Huber, one of their managing attorneys, told me on Thursday, “I heard the EA is expected in January, but we are in wait and see mode and will decide on further steps when it comes out.” Meta and Entergy did not respond to a request for comment.

2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.

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Plus

Is the Election Really About Data Centers?

Talking with Kevin Gundersen, the head of public affairs for Digital Realty.

Kevin Gundersen
Heatmap Illustration

This week’s conversation is with Kevin Gundersen, head of public affairs for data center developer Digital Realty. On Wednesday, Digital Realty released a fascinating poll as part of Infrastructure for America, a pro-data center organization that also includes Compass, Vantage Data Centers, and QTS. The poll pushed back on the idea that we’re currently in the middle of a “data center election”; instead, it found most voters are not expected to choose their national elected officials based on a politician’s stance on data centers.

I reached out to folks involved in the poll's release, and they put me in touch with Gundersen, whom I’ve met before and consider to be a straight shooter. He accepted my invitation to do a candid hot-seat chat about the findings, his thoughts on all the data center attack ads, and whether his industry’s actually recovering any ground with the American people.

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Politics

Why Project Certainty Is the Thorniest Part of the Permitting Bill

Can a key section of BAAJA be saved from unintended consequences?

Donald Trump and Congress.
Heatmap Illustration/Getty Images

Any bipartisan bill to update the nation’s permitting laws was always going to be a compromise, with advantages for the oil and gas industry as well as clean energy. Proponents of the Senate’s latest attempt at permitting reform have painted it as a delicate balance, a hard-won opportunity, and an all-or-nothing deal.

What, then, to make of drafting errors, or unintended consequences?

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