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AM Briefing

Permitting Reform Talks Trail Off

On a biofuels boom, grid upgrades, and the Italian atom

Sheldon Whitehouse.
Heatmap Illustration/Getty Images

Current conditions: After starting to dissipate, Tropical Storm Fay has regenerated as a “zombie storm” in the Atlantic • Tropical Storm Nolo is barreling straight toward Hawaii’s Big Island, bringing yet more floods and powerful winds to a state still reeling from an unusual string of tempests • Temperatures just topped 105 degrees Fahrenheit in Laayoune, the biggest city in Western Sahara, the Morocco-control territory on Africa’s Atlantic coast.


THE TOP FIVE

1. Permitting reform talks stumble

Washington’s ultimate will-we, won’t-we legislative push appears to be leaning toward the latter, at least for now. Senate negotiations on legislation that would streamline permitting for energy projects stalled out Thursday as Democrats told Politico a deal won’t get done until after the midterm elections. The White House, meanwhile, has indicated that President Donald Trump’s concessions to Democrats to make the bill may no longer be on the table after November. While The Hill didn’t explain which compromises the administration would renege on, Democrats have been holding out for more assurances that the White House will halt its attacks on renewables and power lines. Betting markets, to the extent that they represent some crowd-sourced wisdom on the bill’s chances, still give permitting reform a nearly 78% chance of passing before 2027.

2. House proposes the $10 billion package the fusion industry wants

It’s the number the industry wants. It’s the number a report to Congress found is appropriate to compete with China’s soaring spending. Now American fusion could get its $10 billion. On Thursday, Californians Zoe Lofgren, the ranking member of the House Science Committee, and her Republican colleague Jay Obernolte, chair of the body’s Subcommittee on Research and Technology, introduced the American Leadership in Fusion Act, which would pump some $10 billion into the industry to commercialize the frontier nuclear energy technology, my colleague Matthew Zeitlin reported yesterday. “Fusion is the future, and this bipartisan bill is a major step in capitalizing on the promise of its emission-free power,” Lofgren said in a statement. “This bill will unleash a new era of fusion energy development in the United States.”

3. EXIM Bank will fund a $7 billion minerals corridor with Argentina

Los Azules copper mine in Calingasta, Argentina. Luis ROBAYO / AFP via Getty Images

The Trump administration is cementing its, uh, rock solid relationship with Argentinian President Javier Milei. On Wednesday, the Export-Import Bank of the United States agreed to finance up to $7 billion in critical mineral projects in South America’s second-largest economy. The deal, announced during the United Nations General Assembly, lays the groundwork for what the U.S. State Department dubbed the Andes-Atlantic Corridor. The funding will also include investments in Argentina’s liquified natural gas sector, its power grid, and its rail and water transport networks to help get resources to port. “EXIM is moving boldly into the industries of the future,” EXIM Chairman John Jovanovic said in a statement. “To do this, we must secure our supply chains, support American jobs, and ensure American workers, products, and expertise reach all parts of the Western Hemisphere.”

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4. Global biofuels production set to surge 70% in response to the Iran War

At the start of this week, the Financial Times reported that biodiesel prices fell to an all-time low, becoming cheaper than most conventional marine fuels in the world’s largest production hotspot, the Netherlands’ port of Rotterdam. It’s a potential sign of things to come. A new study by the British think tank Chatham House and the Forest Stewardship Council found that global biofuels production is set to surge nearly 70% by 2030 as major producing countries increase fuel-blending mandates in response to the energy crisis brought on by the Iran War. In its write-up of the study, OilPrice.com noted that the U.S., the European Union, Brazil, India, and Indonesia have either adopted or proposed higher biofuel blending rules since the war began in February. That could bring knock-on effects. Ecofin Agency, a publication focused on Francophone African issues, highlighted that the new biofuels mandates could divert 36 million hectares of cropland to producing corn or sugarcane for fuels such as ethanol.

If, as Denmark’s intelligence services warned yesterday morning, Russia is indeed going to attack a NATO country sometime in the coming months, those numbers may yet go up.

5. Energy Department invests $5.3 billion in grid upgrades

The Department of Energy announced a $5.3 billion spending package Thursday to fund 31 grid upgrades across 26 states. Roughly $3.4 billion will come in the form of cost-share funding, with another $1.9 billion in direct federal spending, for projects that include reconductoring or rebuilding more than 1,500 miles of transmission lines and grid-enhancing technologies across another nearly 21,000 miles. Together, the agency expects the upgrades to increase capacity on the nation’s power lines by 23 gigawatts. “These investments will get more out of the infrastructure we already have, move more electricity across the grid, and help deliver affordable, reliable, and secure power that will fuel American prosperity for decades to come,” Secretary of Energy Chris Wright said in a statement.

Reconductoring — restringing power lines with more advanced wires — is, as my colleague Emily Pontecorvo wrote in 2024, “a stupidly easy way to expand the grid.”

THE KICKER

Let me set the mood for the last item today: Imagine the 1958 classic “Nel blu, dipinto di blu” by Italian crooner Domenico Modugno, with its famous line repeating the word volare — to fly — and replace it with dividere, the verb for “to split.” After parting ways with atomic energy in 1990, becoming the first country to completely exit nuclear power after the Chernobyl accident, Italy is getting ready to split atoms yet again. This week, NucNet reported, the Italian Senate gave final approval for a bill to legalize nuclear energy in the country again.

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Spotlight

A Giant Data Center Offers a Permitting Reform Test Case

What would happen to Project Jupiter if the Bipartisan American Affordability and Jobs Act is passed?

Project Jupiter.
Heatmap Illustration/Project Jupiter, Library of Congress

One of the nation’s largest data centers is struggling under permitting woes. So let’s play a game: would the bipartisan permitting bill in Congress make the path easier, or might the federal legislation be irrelevant to large hyperscalers under development today?

Meet Project Jupiter, a mega project in southern New Mexico in Dona Ana County under development by Oracle and OpenAI, with financial backing from SoftBank and political support from the Trump administration for being a part of Stargate, a major Trump administration public-private initiative boosting AI development. Project Jupiter would be one of the largest data centers in the country if completed and currently is expected to run on a microgrid powered by fuel cells converting gas to electricity, which the developers claim will burn much cleaner than a typical off-grid gas turbine power plant.

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Hotspots

The Trump Administration Is Still Messing with Offshore Wind Farms

And more of the week’s top news around project fights.

The United States.
Heatmap Illustration/Getty Images

1. New England (and Maryland) – The Trump administration is still messing with offshore wind farms, even while trying to pass a permitting reform deal. Examining the court filings reveals why they may feel empowered to do it — and I’m not sure how this ends.

  • Last Friday, in a legal case brought by anti-wind activists, the Justice Department submitted a motion in federal court to send the construction and operations plan for Orsted’s Revolution Wind project in New England back to the Interior Department for more analysis. On Wednesday, the DOJ entered a similar motion in another case challenging the construction and operations plan for U.S. Wind’s MarWin project off the coast of Maryland in a lawsuit brought by the state’s coastal community of Ocean City.
  • Trump’s actions led some to question whether the president was sabotaging the deal, and others to claim the media coverage itself was an attempt to kill it. Going further, supporters of the bipartisan bill claimed the DOJ's motions were precisely why the bill should become law, implying it would guard offshore wind farms against this sort of maneuver.
  • However, for the bill’s backers, it’s worth considering why the Trump administration believes it has the legal authority to do this. It’s also time to ask whether the bill would actually protect these wind farms against this tactic.
  • To answer those questions, you have to rewind. On May 1, 2025, the Interior Department withdrew a Biden solicitor’s opinion instructing the agency to “strike a rational balance” between wind power and fishing interests. This revocation document is technically not in effect at the moment; one year later, a federal court ruled the opinion was potentially illegal as a part of a preliminary injunction on five anti-renewables actions requested by solar and wind trade groups. The Trump administration is contesting that ruling, and the administration has filed a notice of appeal.
  • In August, despite that opinion being in doubt, a federal judge granted Trump permission under the Outer Continental Shelf Lands Act to remand the construction and operations plan for the now-defunct Atlantic Shores offshore wind farm in the waters of New Jersey. U.S. District Judge Jia Cobb specifically wrote that Atlantic Shores failed to demonstrate the federal government had limitations under OSCLA on revisiting these plans and that the injunction from the litigation on appeal “did not prohibit all reevaluation of agency action.”
  • In the recent Revolution and MarWin filings, Trump’s Justice Department argues the construction and operations plans should be remanded under OSCLA without being vacated. The DOJ motions include claims that previous decision documents did not adequately explain impacts to commercial fishing and other industries that use OSCLA waters. It’s not clear if the administration will win these motions.
  • The bipartisan permitting bill would bar the Interior Department and other federal agencies from taking “any new action that would revoke, rescind, withdraw, terminate, suspend, amend, or alter a federal authorization or permit in effect on or after September 16, 2026,” or “any other action to interfere with or prevent the construction or operation at full capacity of a project that has secured all necessary federal authorizations and permits.” The restriction exempts cases where “the agency is required to take such action by order of a court.” As I wrote in our lengthy piece explaining the bill, this provision has a damages component that allows companies impacted by violations to pursue financial compensation.
  • Here’s the billion-dollar question I expect we won’t have answered unless the bill language is enacted and then litigated: Would the court order exception apply to rulings that grant these motions? Or would the developers be able to sue for damages?

2. Columbia County, N.Y. – New York’s renewable energy permitting office has rejected an upstate solar farm on farmland as a House Democrat representing the area joined hands with the Trump administration in publicly railing against the project.

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Politics

Climate Races to Watch This November

These seven elections could change state energy policy.

Watching voting.
Heatmap Illustration/Getty Images

No matter how well Democrats do in the House and Senate in November, it’s unlikely to mean anything new on climate policy in Washington, D.C., for as long as Donald Trump remains in the White House.

That is not true when it comes to the other elections this year.

Several states are on the verge of a possible Democratic trifecta, meaning unified control of both chambers of the state legislature and the governor’s mansion. It’s a position that could enable such states to either top off existing climate and energy policies passed in the last decade or to make the first real run at climate legislation in recent history.

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