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What to watch for when the agency releases its final decision on the greenhouse gas endangerment finding.

Any day now, Trump’s Environmental Protection Agency is expected to officially rescind what climate advocates refer to as “the endangerment finding,” its 2009 determination that greenhouse gas emissions threaten Americans’ public health and welfare and therefore require regulation.
Whether the decision holds up to the inevitable legal challenges and what it all means for climate policy, however, will hinge on the justification the EPA provides for reversing course.
The EPA deployed a battery of arguments when it initially proposed revoking the finding last July. It reinterpreted Supreme Court readings of the Clean Air Act and claimed it did not have the authority to regulate carbon pollution. It questioned climate science and posited that curbing U.S. climate pollution would do little to affect global warming.
The 2009 endangerment finding is not unique — all U.S. pollution regulations under the Clean Air Act start with an endangerment finding. The EPA must review the scientific literature, hold hearings, and take public comments on whether emissions of a given pollutant threaten public health and welfare before it can regulate that substance.
The endangerment finding on greenhouse gases paved the way for the EPA to regulate vehicle emissions, specifically, but it was later used to support rules for power plants and oil and gas drilling. By reversing it, the agency will not only clear the way to repealing these standards, it will deny future administrations the legal authority to replace them. That’s a significant escalation from what Trump managed during his first term, when he rolled back greenhouse gas regulations established by the Obama administration, replacing them with weaker provisions.
Here’s what I’ll be looking out for when the decision comes out.
The agency’s primary argument for revoking the endangerment finding was based on its reinterpretation of the Clean Air Act. The agency asserted that the law applies to pollutants that directly threaten public health and welfare through local or regional exposure, and that indirect harms from global climate change do not fit this bill.
Moreover, it argued, the statute required that it make an endangerment finding for each individual greenhouse gas from each specific class of new vehicle to justify regulations, rather than assess the dangers of greenhouse gases from cars generally. The latter approach artificially inflated the case for regulation, the agency implied.
There are many legal experts, such as this trio of lawyers at Harvard’s Environmental and Energy Law Program, who say that the Supreme Court decisively rejected these exact arguments in the 2007 case Massachusetts v. EPA. The main outcome of that case was confirmation that greenhouse gases do, in fact, qualify as pollutants covered by the Clean Air Act, requiring the EPA to regulate them if it determines that they present a threat to public health and welfare. Following that ruling, the agency conducted an extensive review of climate science, held multiple public hearings, and sifted through thousands of public comments, before ultimately publishing the endangerment finding.
Now, however, the agency claims that its previous read of Massachusetts v. EPA was wrong, especially in light of subsequent Supreme Court decisions, such as West Virginia v. EPA and Loper Bright v. Raimondo. The former limited the EPA's toolbox for regulating power plants, and the latter ended a requirement that courts defer to agency expertise in cases where the law is vague.
If the EPA clings to this argument, it may seek to get the Court to revisit that case. As the Harvard lawyers point out, none of the five justices who were in the majority on that case remain on the Supreme Court, which ups the odds of the administration getting a more favorable ruling.
If the EPA does repeal the endangerment finding on the grounds that climate risks from greenhouse gases are not covered by the Clean Air Act, that could empower state and local governments to issue their own emissions regulations, since greenhouse gas regulation would no longer be the purview of the federal government. California, for example, could argue that it no longer needs a waiver from the EPA to enact its own emissions standards for vehicles, an issue that became a political football last spring.
Revoking the endangerment finding this way may also make fossil fuel companies more vulnerable to lawsuits brought by cities and states — and undercut the Trump administration’s own efforts to sue the cities and states that are trying to sue fossil fuel companies. Some 20 to 30 state and local governments have attempted to sue oil and gas companies for damages related to climate change. The industry has responded by arguing that these cases are roundabout attempts to regulate greenhouse gas emissions, which is the job of the federal government, per the Clean Air Act. But if the federal government abdicates that responsibility, this reasoning falls apart.
In the EPA’s proposal to rescind the endangerment finding — which also included a proposal to revoke vehicle emissions standards — the agency tried to get ahead of these issues. It argued that even though it wasn’t required to issue greenhouse gas emission standards for new vehicles, states would still be preempted from doing so because the Clean Air Act still delegates that authority to the EPA.
It’s difficult to see how the agency can have it both ways. As Amanda Lineberry, a senior associate at Georgetown University’s Climate Center put it, the EPA is attempting to deem the Clean Air Act “insufficient to enable federal regulation of GHG emissions to address climate change but sufficient enough to prevent state efforts to address those emissions.”
Nonetheless, in comments responding to the proposal, industry groups such as the American Petroleum Institute and American Gas Association explicitly support this reading, and some asked EPA to strengthen it. “EPA’s rationale would be strengthened by recognizing the long history establishing federal law as the exclusive source of authority over interstate pollution,” the AGA wrote.
Even if, hypothetically, the Clean Air Act does apply to greenhouse gas emissions, the agency would still propose revoking the endangerment finding on scientific grounds, its proposal last summer said. According to a new review of climate science, it said, the EPA could no longer conclude that greenhouse gases from vehicles endanger Americans’ public health and welfare.
The proposal cited a Department of Energy report, published on the very same day as the EPA’s proposal, which provided “a critical assessment of the conventional narrative on climate change.” The report was written by a working group consisting of five scientists who have a track record of pushing back on mainstream climate science. They concluded that the warming caused by greenhouse gases is not as dangerous or bad for the economy as previously thought, and that regulating such emissions will have “undetectably small direct impacts on the global climate.”
The Environmental Defense Fund and the Union of Concerned Scientists have since sued the administration for assembling this group in secret, a violation of the Federal Advisory Committee Act. Records released as a result of that lawsuit suggest that the group was explicitly formed to support the administration’s goal of repealing the endangerment finding. (A judge sided with the environmental groups on Friday, declaring that the working group was subject to FACA.)
Separately, a group of 85 scientists, some of whose research the working group cited, conducted an independent review and deemed the report biased and riddled with errors, including misinterpretations of the reviewers’ own findings. The National Academies, an independent institution that provides expert advice to the U.S. government on scientific and technical issues, also followed up with its own report concluding that “the evidence for current and future harm to human health and welfare created by human-caused greenhouse gases is beyond scientific dispute.”
Given this response, I’ll be looking to see if EPA maintains its position on climate science in the final decision, and if it does, how it responds to the mountain of criticism it has received. It’s possible the courts would defer to the agency’s assessment, but they could also side with the substantially larger volume of evidence disagreeing with it, bruising the agency’s credibility.
Editor’s note: This story has been updated to reflect Friday’s ruling on the working group. It has also been updated to reflect the correct effect of the decision in the Loper Bright case.
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On Tesla’s solar factory, Bolivia’s protests, and China’s hydrogen motorcycle
Current conditions: The East Coast heat wave is exposing more than 80 million Americans to temperatures near or above 90 degrees Fahrenheit through at least the end of today, putting grid operators who run PJM Interconnection and the New York electrical systems on high alert • Thunderstorms are drenching the United States’ southernmost capital city, Pago Pago, American Samoa, and driving temperatures up near 90 degrees • Some 3,600 miles north in the Pacific, Guam’s capital city of Hagåtña is in the midst of a week of even worse lightning storms.
American investment in low-carbon energy and transportation has fallen for a second consecutive quarter, ending an unbroken growth trend stretching back to 2019. In the first three months of 2026, total investment in those green sectors reached $61 billion, according to a Rhodium Group analysis published this morning. That’s a 3% drop from the previous quarter — and a 9% decline from the first three months of 2025. Contrary to the Trump administration’s claims to be overseeing a resounding revival of U.S. manufacturing, investments in clean technologies fell for a sixth consecutive quarter to $8 billion, down a whopping 34% from the first quarter of 2025. With federal tax credits for electric vehicles eliminated, investments into battery manufacturing plunged 47% year over year. At the state level, there’s been some progress. Virginia, Colorado, New Mexico, Oklahoma, Michigan, and New York all recorded their largest year-over-year increases over the past four quarters as clean electricity investments at least doubled in each state. “Wind was the primary driver in Virginia, New Mexico, New York, and Colorado; and solar in Michigan and Oklahoma,” the report noted. Sales of electric vehicles, at least on a worldwide level, are also gaining momentum: the International Energy Agency released a report this morning that forecast 30% of global new car sales will be battery electric this year.
The Tuesday night primary elections in six U.S. states, meanwhile, offered mixed results for clean energy supporters. Representative Thomas Massie, the dissident Republican from northern Kentucky who repeatedly broke with his party to criticize President Donald Trump and boasted of his off-grid home’s solar and battery system, lost by double digits to his White House-backed rival. Pennsylvania’s state Representative Chris Rabb, a progressive would-be “Squad” member whose platform mirrors the Green New Deal movement’s key policy demands, won the Democratic primary for the 3rd Congressional District spanning parts of Philadelphia.

During an appearance on Fox News last week, investor and “Shark Tank” star Kevin O’Leary vowed to release documents showing that opponents of the data center complex he proposed building in the Utah desert received funding from China, suggesting the protesters seeking to thwart his $100 billion megaproject were useful idiots in Beijing’s bid to hamper America’s technological progress. Now Secretary of the Interior Doug Burgum is echoing those claims. “It’s not organic and local,” he said Thursday on stage at the Alaska Sustainable Energy Conference in Anchorage, where he was the keynote speaker. “Some of this is foreign-sourced dark money coming in.” The link between rising electricity prices and data centers, he said, was “specious.” He went on to cite a specific example of a small town in North Dakota, from when he served as the state’s governor, where a billion-dollar data center project ended up reducing costs for ratepayers by paying a premium to “buy down” the price households paid. It wasn’t immediately obvious which project he was referring to. But my best guess from some cursory research is that he may have meant the Applied Digital data center in Ellendale, along the southeastern border with South Dakota. In 2023, Prairie Public reported that the facility helped bring down transmission costs, reducing ratepayers’ bills by as much as $61 per year.
Burgum also suggested that Democrats were inflaming the data center issue for political gain. But opposition spans the political spectrum. Tom Steyer, the billionaire progressive running for governor of California, on Monday walked back a response to a candidate questionnaire published by Greenpeace, in which he said he supported a pause on data center development. In a statement to Politico, campaign spokesperson Kevin Liao said that while Steyer wants to ensure protections for electricity prices and water resources, he does not support a temporary ban.
It appears Elon Musk is more likely to follow through on his promise to build enough manufacturing capacity to churn out 100 gigawatts of solar panels in the U.S. than to sell 500,000 Cybertrucks a year. Tesla has selected a site just outside Houston for a new factory that will expand the company’s capacity to churn out panels in its home market. That’s according to Electrek, which said it had independently confirmed a tip from a source pointing the publication to the Brookshire, Texas, site. The plant will be co-located with a battery factory that is already under construction at the same site.
“Any level of commitment to onshore the entire supply chain is a positive sign for American solar manufacturing and supply chain security,” Yogin Kothari, the chief strategy officer at the SEMA Coalition trade group that advocates for U.S. solar manufacturers against cheap Chinese imports, told me in a text message Tuesday night. “We can make solar panels here — we just have to have the commitment to do it.”
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New Yorkers could receive $200 rebates from the state as part of Albany’s effort to soothe the pinch of rising electricity prices. On Tuesday, Newsday reported that the program would be part of the state budget agreement, which Democratic Governor Kathy Hochul and the Democrat-led legislature are still working to finalize. It wouldn’t be the first check the Hochul administration is sending out to voters as the former lieutenant governor, who initially came to power when former Governor Andrew Cuomo resigned over alleged sexual misconduct, runs for reelection in November. Last year, in a bid to combat the sting of inflation, the state issued rebates ranging from $150 to $400 depending on filing status and adjusted gross income in 2023.
Though it’s home to the world’s largest known reserves of lithium, landlocked Bolivia’s vast resources have largely remained undeveloped after two decades of rule by a left-wing government leery of foreign investment. The right-wing government that finally broke the Movimiento al Socialismo party’s grip on power in La Paz last year has sought to tap the so-called white gold in its salt flats, particularly as Washington looks for new sources of metals outside of supply chains China largely controls. New documents published Tuesday by the left-wing journalist Ollie Vargas appear to show the Bolivia’s Public Prosecutors Office’s warrants to arrest protesters and labor leaders connected to recent nationwide strikes on charges that include terrorism. “Bolivia’s government has ordered the arrest of all the main leaders of the indigenous movements and mineworkers unions,” Vargas wrote in a post on X. “They’re being charged for Terrorism for having organised the general strike against hunger. Strike continues regardless, now in day 7.” Clashes between law enforcement and protesters started last week.
China’s hydrogen industry is booming. Its sales of electrolyzers are beating out domestic manufacturers in Europe. Fuel cell vehicles are hitting the roads. Hydrogen refueling stations are opening. But the Chinese hydrogen sector with the highest volume of orders coming from overseas is for something simpler: Two-wheeled, hydrogen-powered motorcycles. That’s according to the latest China Hydrogen Bulletin, in which analyst Jian Wu reported from the 6th China International Consumer Products Expo on the island province of Hainan that a maker of the motorcycles had secured $300 million in overseas orders.
The maker of smart panels is tapping into unused grid capacity to help power the AI boom.
The race for artificial intelligence is a race for electricity. Data centers are scrambling to find enough power to run their servers, and when they do, they often face long waits while utilities upgrade the grid to accommodate the added demand.
In the eyes of Arch Rao, the CEO and founder of the smart electrical panel company Span, however, there is a glut of electricity waiting to be exploited. That’s because the electric grid is already oversized, designed to satisfy spikes in demand that occur for just a few hours each year. By shifting when and where different users consume power, it’s possible to squeeze far more juice out of the existing system, faster, and for a lot less money, than it takes to make it bigger.
This is what Span’s smart panel does — it manages the energy drawn by household appliances to help homeowners integrate electric vehicle chargers and heat pumps without triggering the need for electrical upgrades.
Now the age of AI has opened up new opportunities for the company. Last month, Span announced the launch of XFRA, a device that works with Span’s smart panel to power AI applications by tapping into the unused electrical capacity available to homes and businesses.
The company refers to XFRA as a “distributed data center.” It’s sort of like if you chopped up a full-scale data center into washing machine-sized boxes and plugged them into peoples’ homes; Span’s smart panel then acts as a conductor, orchestrating XFRA’s energy consumption to take advantage of unused power capacity without stepping on the home’s other energy needs. In exchange for hosting one of these XFRA “nodes,” Span will offer homeowners and tenants deeply discounted, if not free electricity and internet service.
The idea sounded audacious, verging on fantastical, until I watched the economics play out in real time at one of Span’s labs in a warehouse south of San Francisco. Ryan Harris, the company’s chief revenue officer, showed me an XFRA prototype — a metal box about the size of a freezer chest stuffed with Dell servers and Nvidia liquid-cooled GPUs. Span was renting out the processing power from this node and six others to AI users through an online marketplace. On a computer screen next to the unit, a dashboard showed the revenue flowing in from the fleet — $500 over the past 24 hours, and more than $21,000 in the previous three weeks. The numbers continued to tick up as I stood there.
When I first planned to write about Span, XFRA was still a secret. I reached out because its smart panel business, which debuted in 2019, seemed to suddenly take off.
In February, Span announced that PG&E, the largest utility in California, would be installing its devices in thousands of homes beginning this summer. Then in March, the company revealed a partnership with Eaton, one of the biggest legacy electrical equipment companies in the world. Eaton is investing $75 million in Span and will begin selling co-branded electrical panels to its extensive network of distributors, installers, and homebuilders later this year. With the launch of XFRA, Span is becoming something like a utility itself. To date, the company has raised more than $400 million, and will soon close a nearly $200 million Series C.
Of course it will take more than smart electrical panels to serve data centers’ soaring power needs. In this era of unprecedented energy demand growth, building a bigger electrical system is unavoidable — but the size of the investment, and the cost impacts on everyday electricity customers, are malleable. Several recent studies have shown just how big the opportunity is to get more energy out of our existing infrastructure if the entire system can become a bit more flexible.
Last year, Duke University researchers found that on average, the U.S. is utilizing only about half of our electricity generation capacity. Nationwide, they estimated, the grid could accommodate at least 76 gigawatts of new load — close to the total generation capacity installed in California — without having to upgrade the electrical system or build new power plants, so long as those new end-users were somewhat flexible with when and how much electricity they used.
More recently, in a report commissioned by a coalition called Utilize, of which Span is a member, the Brattle Group found that milking just 10% more from our existing grid infrastructure on an annual basis could reduce electricity rates for all end users by 3.4%. Utilities can sell more energy, faster, and spread the fixed costs of running the system across more customers.
What all this meant in practice did not fully click for me until I saw a demonstration of Span’s panel at the lab a few weeks ago. Harris, the CRO, led me to a free-standing wall lined with household appliances, a stripped-down version of an all-electric home. A minisplit heat pump whirred while a high-speed electric vehicle charger was juicing up a Rivian parked on the warehouse floor. A TV screen displayed the amount of power going to each device, as measured by Span’s electric panel.
Together, the heat pump and charger were using about two-thirds of the electric capacity of this demonstration home, which was running on a 100-amp utility service connection. The charger alone was using 48 amps.
The owner of this theoretical home would typically not have been allowed to install such an energy-intensive EV charger without upgrading to 200-amp service. Electric codes require that residential electrical systems have room for the rare scenario that a home’s major appliances all run at once, for safety reasons. Otherwise, the occupants might accidentally try to draw more power than their utility connection can deliver, overheat their wires, and start a fire. 100-amp connections are exceedingly common in homes designed to use gas or propane for cooking and heating, but once you replace those appliances with electric versions, or add an EV charger, you start to push the limit.
A service upgrade to 200 amps can take many months and cost several thousands of dollars. The utility typically has to run new wiring to the house, and might even have to augment the grid infrastructure serving the neighborhood.
Span’s smart panel offers an alternative.
“Shall we turn on some load?” Harris said. An engineer on Span’s product team turned on the demo home’s electric water heater, and I watched as the chart on the screen adjusted. The water heater jumped from zero to 22 amps, while the EV charger’s amperage decreased from 48 to 33. When the engineer switched on the clothes dryer, drawing 24 amps, the EV charger’s amperage dropped further.
The electrical panel was tracking how much power was flowing to each of its circuits and throttling the EV charger in response. When the team dialed up the electric stove to heat a pot of water, the EV charger shut off altogether.
Next, Harris requested a boost to the “garage” sub-panel, simulating a hot tub or some power tools kicking on. Soon, the water heater shut off, too. “You have 50 gallons of hot water, so it’s not going to have any negative impact on the customer in that moment,” Harris told me. He showed me an alert that appeared on the Span phone app notifying the homeowner that the system was temporarily limiting power to the EV charger and water heater in order to power other devices.
Users can choose which appliances the system bumps first. While some devices, such as EV chargers, water heaters, and heat pumps, have the ability to be ramped up and down, others will simply shut off.
At $2,550 excluding labor for the smallest, most basic smart panel, and just over $4,000 for the biggest one, Span is more expensive than the average dumb panel, which can come in under $1,000. Depending on the home and the complexity of a service upgrade, however, it’s often cheaper to install Span than to move to 200 amps. It’s also almost certainly faster.
Span’s first generation product couldn’t do any of this. Initially, the company’s value proposition was just to give people more control over their energy usage. The original Span panel gave homeowners with batteries the ability to select which devices they wanted to power during an outage and ensure they didn’t accidentally lose charge on non-essentials. The company had to build an initial customer base and validate the technology in the real world, Rao told me, before it could earn the credibility (and the capital) to deploy the fully realized version of the product.
In 2023, Span debuted “PowerUp,” the software that makes what I witnessed at the lab possible. With PowerUp, Span’s smart panel went from being a cool gadget to a money-saver, helping homeowners skip utility service upgrades. The success of PowerUp opened the door for Span to engage with larger partners, starting with homebuilders.
“We had to demonstrate that we were safe and scalable in the home retrofit category to then get homebuilders — who are typically very, very cost sensitive, are not often at the tip of the spear in terms of technology adoption — to say, this is a proven technology, and it saves you money,” said Rao.
Residential developers face similar problems as homeowners, but on a bigger scale. While 200-amp connections have become more standard over the past few decades, new electrical codes that require either fully electric or electric-ready construction are pushing the limits.
“Now the load calculations will put them at 300 or 400 amps of service per home,” Rao told me. “Multiply that by a community of 500 homes, and suddenly you’ve doubled the amount of interconnection you need to bring from the utility.”
This raises the cost of development, and it can also increase the wait time — potentially by years — to get hooked up to the grid. Again, Span offers an alternative. To date, nearly half of the top 20 homebuilders across the U.S. have used the company’s technology, Rao told me. More broadly, its electrical panels have been installed in tens of thousands of homes in all 50 states.
I should note that Span is not the only solution on the market for homeowners or homebuilders to avoid service upgrades — the main alternative is just choosing appliances that don’t use so much power. There are water heaters, clothes dryers, and EV chargers on the market that run on lower amperage, and startups like Copper and Impulse Labs are making stoves with integrated batteries that enable them to do the same. There are also Span-adjacent technologies such as smart circuit splitters that let you plug two power-hungry devices, like an EV charger and a clothes dryer, into the same circuit, and the device will safely modulate power between the two.
“You can hack your way around both problems — one, of a panel upgrade, and two, a Span upgrade, which is also expensive — with cheaper solutions,” Brian Stewart, the co-founder of Electrify Now, a group that provides education and advocacy on home electrification, told me. “But it’s less elegant, let’s just say, than the Span solution.”
Though he started at the home level, Rao has always had his sights set on a much bigger customer — utilities. Several Span executives I spoke to referenced an “infamous” Powerpoint slide from the early days of the company with a bar chart that showed how the company would scale in three phases. First came “back-up,” referring to Span’s initial home battery management product. Next was “power-up,” the software that enabled electrification by avoiding service upgrades. The third was “fleet.”
The same safety principles that trigger service upgrades at individual homes also apply upstream at the neighborhood level. For example, the size of a neighborhood’s transformer, the equipment that changes the voltage of the electricity as it moves along the grid, depends on the combined amperage of the homes it serves. If all those homes are installing EV chargers or heat pumps or whatever else and starting to use more electricity, the utility will have to upgrade the transformer — a cost that gets spread across all of its customers. If a critical mass of the homes have Span panels, however, they can avoid this.
Partnering with major homebuilders earned Span “the right to sit at the table with utilities,” Rao told me, “and say, look, we’ve done this at the home level, at the community level. Imagine if you could do this at the grid level, where the benefit doesn’t just accrue to individual customers or home builders, it can accrue to all rate payers?”
I got a taste of what this looks like back at the lab, where Harris showed me Span’s “fleet capability.” There were actually three demonstration homes set up on the warehouse floor, and Harris showed me how a utility could coordinate a response across multiple Span panels to keep a neighborhood within its safe energy limits.
Imagine it’s a really hot day, and the utility is on the verge of having to institute rolling blackouts. Instead, it can implement what’s called a dynamic service rating event, sending a signal out to the Span panels served by a given transformer to reduce their electrical limit from 100 amps to 60, for example. Rather than the entire neighborhood losing power, a few homes would see their EV charging cut back or their thermostats go up by a few degrees. Of course, not everybody will want to give this kind of control to the utility; customers often cite concerns about comfort and convenience as reasons they are skeptical of these kinds of programs. When I asked Harris whether participating would require that Span customers opt in, he said it was more likely to be opt-out.
Span has done several pilot projects testing this capability. Installing electrical panels is too complex for utilities to do en masse, though. So the company developed Span Edge, a smaller version of its panel that can be installed at a building’s electricity meter. It does all the same things the larger electrical panel does, without needing to serve as the home’s central nervous system. It still enables homeowners to avoid service upgrades by throttling EV chargers or whatever other devices are hooked up to it, but it’s much simpler to install.
This is the device that the California utility PG&E will begin deploying in homes later this summer. The company will offer Span Edge to homeowners who are installing appliances that might trigger an electrical upgrade, or are considering doing so in the future, through a program called PanelBoost. It’s entirely voluntary, and while participants will have to pay for installation, the panel itself comes gratis.
“This is the first time that there’s a large-scale direct purchase of Span equipment by a utility,” Alex Pratt, Span’s vice president of business development, told me. “This has long been the North Star for the company.”
Paul Doherty, the manager for clean energy and innovation communications at PG&E, told me the company saw Span Edge as a “win, win, win for PG&E, for our customers, and for the environment.” It enables customers to electrify their homes more quickly and affordably, and for PG&E to sell more electrons without raising rates.
“We’re very bullish about the opportunity for this technology and the benefit that it will bring for the grid and for our customers here in California,” Doherty told me.
Rao sees XFRA as a natural evolution of Span’s basic premise. The company has found that 98% of its customers that have 200-amp service connections have about 80 amps available at any given time, Harris told me. Hosting an XFRA node enables homeowners to monetize that unused capacity.
To start, Span is prioritizing getting XFRA into newly built homes, where the developer handles customer acquisition and installing at scale is straightforward since every home is roughly the same. The company has partnered with the developer PulteGroup to roll out a 100-home pilot program for a total of over 1.2 megawatts of compute capacity. The partners have not specified where it will be yet or whether there will be a single offtaker for the compute.
In the longer term, Rao told me, XFRA could be the “unlock” that makes electrification more affordable for people. “There is a utopian end state in my mind where XFRA allows more of our customers to get free energy, free backup, and free internet,” he said.
First, the company will have to find out if anyone is actually willing to let XFRA into their home. During my final conversation with the CEO, after my lab visit, he showed me the infamous slide forecasting the company’s growth from “back-up to power-up to fleet.” The y-axis on the chart showed the number of homes per year the company could address at each stage. The bar for back-up systems landed at 5,000 per year, Power-up came to nearly 100,000. Suffice it to say, Span hasn’t hit these numbers.
“Are you where you want to be today?” I asked him.
Of course, he wasn’t going to say no. “We have contracts in place for hundreds of thousands of homes already with utilities,” he said. “Right now our focus is on execution — delivering on that scale, as opposed to finding that scale. It’s a deployed product, it’s not a downloadable app, so it takes time to physically deploy hundreds of thousands of endpoints. So I think that scale is coming.”
After years of dithering, the world’s biggest automaker is finally in the game.
The hottest contest in the electric car industry right now may be the race for third place.
Thanks to Tesla’s longtime supremacy (at least in this country), its two mainstays — the Model Y and Model 3 — sit comfortably atop the monthly list of best-selling EVs. Movement in the No. 3 spot, then, has become a signal for success from the automakers attempting to go electric. The original Chevy Bolt once occupied this position thanks to its band of diehard fans. Last year, the brand’s affordable Equinox EV grabbed third. And then, earlier this year, an unexpected car took over that spot on the leaderboard: the Toyota bZ.
The surprise is not so much the car itself, but rather its maker. Over the years, we’ve called out Toyota numerous times for dragging its feet about electric cars. The world’s largest automaker took the hybrid mainstream and still produces the hydrogen-powered Mirai. Nevertheless, Toyota publicly cast doubt about the viability of fully electric cars on several occasions and let other legacy car companies take the lead. Its first true EV, the bZ4X, was a disappointment, with driving range and power figures that lagged behind the rest of the industry.
Suddenly, though, the Toyota narrative looks different. Working at its trademark deliberate pace, the auto giant is revealing a batch of new EVs this year, just as competitors Ford, GM, Honda, and Hyundai-Kia are pulling back on their electric lines (and writing off billions of dollars to tilt their companies back toward fossil fuels). There is the Toyota bZ, which Car and Driver called “quicker, nicer inside, and better at being an EV” than the bZ4X, its predecessor. There is the C-HR, a small crossover that had been gas-powered before it became fully electric this year. And there is the large Highlander SUV, a popular nameplate that’s about to become EV-only.
To see what’s changed with the cars themselves, I test-drove the C-HR last week. A decade ago, I’d taken its gas-powered predecessor on a road trip down Long Island and found it to be a fun but frustrating vehicle. Toyota went way over the top with the exterior styling back then to make the little car scream “youthful,” but under the hood was a woefully underpowered engine that took about 11 seconds to push the C-HR from 0 to 60 miles per hour. Now, thanks to the instant torque of electric motors, the new version finally has the zip to go with its looks: It’ll get to 60 in under five seconds, and feels plenty zoomy just driving around town.
Inside, C-HR feels like an evolved Toyota that isn’t trying too hard to be a Tesla. The brand took the two-touchscreen approach, with a large one in the center console to handle main functions such as navigation, entertainment, and climate control, and a smaller one in front of the driver’s eyes where the traditional dashboard would be. There are still physical buttons on the wheel to manipulate music volume and cruise control, but climate controls are entirely digital.
The big touchscreen is a work in progress. It’s too crowded with information compared to a clean overlay like Tesla’s or Rivian’s, and the design of the navigation software had some profound flaws. (Whether you’re using the voice assistant or keyboard input to search for a destination, the system lags a troubling amount for a brand-new car. Maybe Toyota just expects you to use Apple CarPlay and ignore its built-in system.) Still, the interface is more iPhone-like and intuitive than what Hyundai and Kia are using in their EVs.
Here’s the real problem with the C-HR: Although it accomplishes the mission of feeling like a fun-to-drive Toyota that happens to be electric, it’s not terribly good at being an electric car. The Toyota lacks one-pedal driving, the delightful feature where the car slows itself as soon as you let off the accelerator, negating the need to move your foot between two pedals all time. Nor does it have a front trunk, a.k.a. frunk, the fun bonus on EVs made possible by the absence of an engine. According to Toyota, the C-HR is so small that engineers simply didn’t have room for a frunk (or a glovebox, for that matter).
The C-HR’s NACS charging port makes it possible to use Tesla Superchargers, and its charging port location on the passenger’s side front should make it simple to reach them. But instead of sitting on the corner of the car, easily reachable by a plug right in front of the parked vehicle, the port is several feet back, just behind the front wheel. And its door opens toward the charger, so the cord has to reach over or under the door that’s in the way. I made it work at a Supercharger in greater San Diego, but only after several frustrating tries and with less than an inch of cord to spare.
Those are the complaints of a longtime EV driver, and they might not matter to some C-HR buyers. The deepest oversight is the C-HR’s nav, which, at least right now, doesn’t have compatible charging stations built into its route planning — a warning message will notify you if the chosen route requires recharging to reach the final destination, but the car won’t tell you where to go. This is a glaring omission for potential buyers who’ll be taking their first EV road trip. (Get PlugShare, folks.) Planned charging is effectively an industry standard — even Toyota’s legacy competitors like Chevy and Hyundai will choose appropriate fast-chargers and route you to them, even if their interface isn’t as seamless and satisfying as what’s in a Tesla or Rivian. At least that’s a problem that could be solved later via software update, though.
Because of these faults, it’s difficult to imagine someone choosing this as their second or third EV. But maybe that’s not the game at all. There is a legion of Toyota drivers out there, many of whom might think about buying their first electric car if their brand built one. Despite its flaws, the C-HR is that. It’s got enough range for city living and occasional road trips, enough power to be fun to drive, and a Toyota badge on the hood.
Whatever their quirks, the very existence of the C-HR and its electric stablemates is a testament to Toyota’s plan to play the long game with EVs rather than ebb and flow with every whipsaw turn in the American car market. And they’re here just in time. Amidst volatile oil prices because of the Iran war, drivers worldwide are more interested in going electric.
In the U.S., that interest has buoyed used EV sales — not new — because so few affordable options are on the market. Although C-HR starts near $38,000, Toyota has begun to offer discounts that would bring it in line with gas-powered crossovers that are $5,000 cheaper. Maybe that’ll be enough for the subcompact to join its bigger sibling, the bZ, on that list of best-sellers.