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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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The sale of Ravenswood Generating Station closed at the end of January.
New York City’s largest fossil fuel-fired power plant has changed hands. The Ravenswood Generating Station, which provides more than 20% of the city’s generation capacity, was sold by its former parent company LS Power to NRG, an energy company headquartered in Texas that owns power plants throughout the country.
It’s not yet clear what this means for “Renewable Ravenswood,” the former owner’s widely-publicized plans to convert the site into a clean energy hub. Prior to the sale, those plans were hanging by a thread. NRG did not respond to detailed questions about whether it will abandon or advance that vision.
“Ravenswood has been an important part of powering New York City for decades, and we recognize how much the facility matters to the surrounding community and the region,” a spokesperson for the company told me in an email. “We’ve begun engaging with community stakeholders and look forward to continuing those conversations in the months ahead. Our leadership team is carefully reviewing all relevant information and is taking a thoughtful, measured approach to any future decisions.”
Ravenswood is made up of four generating units: a natural gas combined cycle plant built in 2004, and three steam generators built in the 1960s that run mostly on natural gas, though sometimes also on oil. The plant is responsible for a sizable chunk of the city’s climate footprint. In 2023, the most recent year for which data is available, the plant emitted nearly 1.3 million metric tons of CO2, or about 8% of the city’s emissions from electricity production.
The Renewable Ravenswood concept was largely celebrated by the surrounding community, which includes two of the largest public housing projects in the country and suffers from disproportionately high rates of chronic respiratory diseases like asthma. The plan, which a local subsidiary of LS Power called Rise Light and Power proposed in 2022, entailed replacing the plant’s three 1960s steam generators with a combination of offshore wind, batteries, and renewable energy delivered from upstate New York via new power lines.
By last year, however, the plan was increasingly looking like a distant dream. Its centerpiece was a proposed offshore wind farm called Attentive Energy, but the project has been on ice since 2024, with little chance of moving forward under the Trump administration. This past November, New York regulators rejected a proposed transmission line that would have connected Ravenswood to a hypothetical future offshore wind development, primarily because there was no longer any such development in progress. Earlier this week, state energy regulators delivered yet another blow to potential offshore wind development when they decided not to solicit offers from for new projects to enter the state’s energy market.
Battery development has also had a rocky few years in New York State, which has affected Ravenswood’s transition. Rise Light and Power initially proposed building a 316-megawatt battery project on the site in 2019, but it has yet to break ground. The former CEO, Clint Plummer, previously told me that the company was waiting on New York State regulators to open up their anticipated battery solicitation, which would enable the project to bid into the New York energy market, before building the project. That solicitation opened last July, but it’s unclear whether the company submitted a bid. NRG did not respond to a question about this.
NRG first announced its plans to buy a fleet of natural gas plants — 18 in total — from LS Power in May 2025. Ravenswood was not mentioned in the press release or investor materials, however. “We're acquiring these assets at a significant discount to new build cost, at an attractive valuation, and at the strategically opportune time to be adding high-quality, difficult-to-replicate resources into our portfolio as the sector enters into a period of sustained demand growth,” NRG’s CEO Lawrence Coben told investors at the time.
The purchase was subject to regulatory approval and officially closed a few weeks ago, on January 30. Documents filed with the Securities and Exchange Commission confirm that Ravenswood was part of the deal. Documents filed with the New York Public Service Commission describe the terms in more detail, but they do not mention the proposed transition of the site to a clean energy hub.
Local officials, community groups, and tenant associations were deeply involved in fleshing out the Renewable Ravenswood vision. The Queens Borough President worked with the former owner on a multiyear report called “Reimagine Ravenswood,” released last summer, based on extensive engagement with the community, including public workshops, focus groups, interviews with local leaders, and a community survey. The report is evidence of high hopes the community has for the site’s transition, describing the potential to create jobs, expand public space, and generally increase investment in the neighborhood.
I reached out to many of the local elected officials and community groups that have publicly supported Renewable Ravenswood to ask if they were aware of the sale and whether NRG had made any commitments in regard to the transition plan. Just one responded. State Senator Kristen Gonzalez’s office told me they were aware of the sale, but declined to comment further.
Heron Power and DG Matrix each score big funding rounds, plus news for heat pumps and sustainable fashion.
While industries with major administrative tailwinds such as nuclear and geothermal have been hogging the funding headlines lately, this week brings some variety with news featuring the unassuming but ever-powerful transformer. Two solid-state transformer startups just announced back-to-back funding rounds, promising to bring greater efficiency and smarter services to the grid and data centers alike. Throw in capital supporting heat pump adoption and a new fund for sustainable fashion, and it looks like a week for celebrating some of the quieter climate tech solutions.
Transformers are the silent workhorses of the energy transition. These often-underappreciated devices step up voltage for long-distance electricity transmission and step it back down so that it can be safely delivered to homes and businesses. As electrification accelerates and data centers race to come online, demand for transformers has surged — more than doubling since 2019 — creating a supply crunch in the U.S. that’s slowing the deployment of clean energy projects.
Against this backdrop, startup Heron Power just raised a $140 million Series B round co-led by Andreessen Horowitz and Breakthrough Energy Ventures to build next-generation solid state transformers. The company said its tech will be able to replace or consolidate much of today’s bulky transformer infrastructure, enabling electricity to move more efficiently between low-voltage technologies like solar, batteries, and data centers and medium-voltage grids. Heron’s transformers also promise greater control than conventional equipment, using power electronics and software to actively manage electricity flows, whereas traditional transformers are largely passive devices designed to change voltage.
This new funding will allow Heron to build a U.S.manufacturing facility designed to produce around 40 gigawatts of transformer equipment annually; it expects to begin production there next year. This latest raise follows quickly on the heels of its $38 million Series A round last May, reflecting hunger among customers for more efficient and quicker to deploy grid infrastructure solutions. Early announced customers include the clean energy developer Intersect Power and the data center developer Crusoe.
It’s a good time to be a transformer startup. DG Matrix, which also develops solid-state transformers, closed a $60 million Series A this week, led by Engine Ventures. The company plans to use the funding to scale its manufacturing and supply chain as it looks to supply data centers with its power-conversion systems.
Solid-state transformers — which use semiconductors to convert and control electricity — have been in the research and development phase for decades. Now they’re finally reaching the stage of technical maturity needed for commercial deployment, driving a surge in activity across the industry. DG Matrix’s emphasis is on creating flexible power conversion solutions, marketing its product as the world’s first “multi-port” solid-state transformer capable of managing and balancing electricity from multiple different sources at once.
“This Series A marks our transition from breakthrough technology to scaled infrastructure deployment,” Haroon Inam, DG Matrix’s CEO, said in a statement. “We are working with hyperscalers, energy companies, and industrial customers across North America and globally, with multiple gigawatt-class datacenters in the pipeline.” According to TechCrunch, data centers make up roughly 90% of DG Matrix’s current customer base, as its transformers can significantly reduce the space data centers require for power conversion.
Zero Homes, a digital platform and marketplace that helps homeowners manage the heat pump installation process, just announced a $16.8 million Series A round led by climate tech investor Prelude Ventures. The company’s free smartphone app lets customers create a “digital twin” of their home — a virtual model that mirrors the real-world version, built from photos, videos, and utility data. This allows homeowners to get quotes, purchase, and plan for their HVAC upgrade without the need for a traditional in-person inspection. The company says this will cut overall project costs by 20% on average.
Zero works with a network of vetted independent installers across the U.S., with active projects in California, Colorado, Massachusetts, Minnesota, and Illinois. As the startup plans for national expansion, it’s already gained traction with some local governments, partnering with Chicago on its Green Homes initiative and netting $745,000 from Colorado’s Office of Economic Development to grow its operations in Denver.
Climactic, an early-stage climate tech VC, launched a new hybrid fund called Material Scale, aimed at helping sustainable materials and apparel startups navigate the so-called “valley of death” — the gap between early-stage funding and the later-stage capital needed to commercialize. As Climactic’s cofounder Josh Fesler explained on LinkedIn, the fund is designed to cover the extra costs involved with sustainable production, bridging the gap between the market price of conventional materials and the higher price of sustainable materials.
Structured as a “hybrid debt-equity platform,” the fund allows Climactic’s investors to either take a traditional equity stake in materials startups or provide them with capital in the form of loans. TechCrunch reports that the fund’s initial investments will come from an $11 million special purpose vehicle, a separate entity created to fund a small set of initial investments that sits outside Material Scale’s main investing pool.
The fashion industry accounts for roughly 10% of global emissions. “These days there are many alt materials startups that have moved through science and structural risk, have venture funding, credible supply chains and most importantly can achieve market price and positive gross margins just with scale,” Fesler wrote in his LinkedIn post. “They just need the capital to grow into their rightful commercial place.”
Clean energy stocks were up after the court ruled that the president lacked legal authority to impose the trade barriers.
The Supreme Court struck down several of Donald Trump’s tariffs — the “fentanyl” tariffs on Canada, Mexico, and China and the worldwide “reciprocal” tariffs ostensibly designed to cure the trade deficit — on Friday morning, ruling that they are illegal under the International Emergency Economic Powers Act.
The actual details of refunding tariffs will have to be addressed by lower courts. Meanwhile, the White House has previewed plans to quickly reimpose tariffs under other, better-established authorities.
The tariffs have weighed heavily on clean energy manufacturers, with several companies’ share prices falling dramatically in the wake of the initial announcements in April and tariff discussion dominating subsequent earnings calls. Now there’s been a sigh of relief, although many analysts expected the Court to be extremely skeptical of the Trump administration’s legal arguments for the tariffs.
The iShares Global Clean Energy ETF was up almost 1%, and shares in the solar manufacturer First Solar and the inverter company Enphase were up over 5% and 3%, respectively.
First Solar initially seemed like a winner of the trade barriers, however the company said during its first quarter earnings call last year that the high tariff rate and uncertainty about future policy negatively affected investments it had made in Asia for the U.S. market. Enphase, the inverter and battery company, reported that its gross margins included five percentage points of negative impact from reciprocal tariffs.
Trump unveiled the reciprocal tariffs on April 2, a.k.a. “liberation day,” and they have dominated decisionmaking and investor sentiment for clean energy companies. Despite extensive efforts to build an American supply chain, many U.S. clean energy companies — especially if they deal with batteries or solar — are still often dependent on imports, especially from Asia and specifically China.
In an April earnings call, Tesla’s chief financial officer said that the impact of tariffs on the company’s energy business would be “outsized.” The turbine manufacturer GE Vernova predicted hundreds of millions of dollars of new costs.
Companies scrambled and accelerated their efforts to source products and supplies from the United States, or at least anywhere other than China.
Even though the tariffs were quickly dialed back following a brutal market reaction, costs that were still being felt through the end of last year. Tesla said during its January earnings call that it expected margins to shrink in its energy business due to “policy uncertainty” and the “cost of tariffs.”