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More Californians have searched for news about “floods” in 2023 than “wildfires,” which seems in keeping with this summer’s series of out-of-left-field climate disasters. The worst smoke pollution hit … the East Coast. The deadliest wildfire in modern U.S. history leveled … a former wetland in Hawaii. Naturally a hurriquake in Los Angeles and catastrophic flooding in Palm Springs would come next?
But California’s reputation as the land of drought and fire has obscured the fact that extreme flooding is the other player in the state’s deadly climatological triumvirate. From the atmospheric rivers this winter, which caused some 500 mudslides and inflicted as much as $1 billion in damage, to Hurricane Hilary dumping record-breaking rains over the southwestern United States this weekend, floods are understandably top-of-mind (especially with a relatedly somewhat slow start to the state’s fire season).
Here’s what you need to know about the future of extreme floods in the Golden State:
Former Hurricane Hilary was the first tropical storm to make landfall in California in 84 years, easily snapping the practically nonexistent late August daily rainfall records around L.A. In fact, hurricanes making landfall in the lower lefthand corner of the U.S. is so rare that there isn’t actually much of a data record for scientists to use as a point of comparison, Inside Climate News reports — which makes forming future projections and establishing links to climate change actually rather difficult.
What we do know is this: California has largely avoided hurricanes in the past due to the generally cold waters off its coast, which NBC News describes as acting as a sort of “shield” for the state. Hurricanes get their strength and moisture by forming over warm waters, and the eastern Pacific has historically been as much as 9 degrees cooler than the same latitude in the Gulf of Mexico.
But California’s shield has a crack. July was the hottest recorded month on planet Earth and the waters Hilary passed over on its journey north were 4 degrees warmer than usual, the Los Angeles Times explains. Sure enough, research shows that hurricane landfalls in the eastern Pacific could increase dramatically along with global and oceanic warming — bringing more rain and floods along with them.
There are certain conditions that made Hilary particularly unusual, however: A heat dome that formed over the central United States, for example, helped tug the storm directly over California, as opposed to a more typical path of a hurricane or tropical storm being pushed out to sea by easterly winds off the continent. So while hurricanes might be more intense and wet in the future, they won’t necessarily continue to make it over to California the way Hilary has.
Yes, to some extent. In addition to greenhouse gas emissions making the oceans warmer, the weather pattern called El Niño is likely responsible for some of the warming of the waters off of Baja California, which intensified Hurricane Hilary. But again, there were also unique conditions that contributed to Hilary’s unusual path over the southwestern United States, including the prevailing wind patterns. Strong El Niño years, as a result, don’t necessarily mean more hurricanes for Southern California.
El Niños have tended to bring higher winter rainfalls to Southern California, though that is also not necessarily a guarantee. NOAA’s outlook for the coming winter doesn’t currently show above-average precipitation expected for the state. Some El Niño years are actually drier than average, which goes to show that “El Niño is just one hand on the atmospheric steering wheel,” Weather Underground writes.
California isn’t a land of droughts or floods — it’s a land of both. A better way to think about the future of weather in the state is as one of extremes.
That’s because, “[i]n a seeming paradox, drought and flooding are two sides of one coin,” Governing explains. “A warmer atmosphere can hold more water, and higher temperatures cause more water on the Earth’s surface to evaporate. This can result in bigger rainstorms.”
The good news is, most of California is now free of drought conditions and this year’s fire season has been quieter because of all the wet vegetation. But while Tropical Storm Hilary apparently only inflicted minor damage and no known deaths this weekend, floods have been a devastating fixture of life in the Golden State before and they will be again.
As Yale Climate Solutions warned earlier this year, “Given the increased risk [due to climate change], it is more likely than not that many of you reading this will see a California megaflood costing tens of billions in your lifetime.”
California doesn’t need 40 days and nights of rain to experience its worst-case flood event, researchers have found. If a 30-day rainstorm similar to one that hit the then-unpopulous state in 1862 were to strike again today, it could potentially be a $1 trillion disaster — “larger than any in world history” — UCLA’s “ARkStorm 2.0” scenario modeling found last year.
“Every major population center in California would get hit at once — probably parts of Nevada and other adjacent states, too,” Daniel Swain, a UCLA climate scientist and co-author of the paper, said in a statement at the time.
Unlike a tropical storm, which passes in a number of days, the ARkStorm flood event would last a month in the form of sequential atmospheric rivers, like the kind that battered the state this past winter. The link between climate change and heavy precipitation is well understood, and the researchers found that “climate change has already doubled the likelihood of such an extreme storm scenario,” with “further large increases in ‘megastorm’ risk … likely with each additional degree of global warming this century.”
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The entire global energy economy has shifted — and yet somehow the administration’s agenda remains exactly the same, just more urgent.
The energy crisis brought about by the Iran War has not changed the Trump administration’s priorities. Officials are still pushing the same litany of pro-fossil fuel policies now as they have since as far back as the 2024 campaign — but it has given them a new sense of verve. With 20% of the world’s oil production and 20% of the liquified natural gas market affected in some way or another by the effective closure of the Strait of Hormuz, one might think a change of course might be called for. But no — now more than ever, U.S. officials are saying, it’s time for the Trump energy agenda.
Here are a few examples from recent days of U.S. officials using the energy shock to advance Trump-favored policies:
Secretary of the Interior Doug Burgum has been acting as an energy project pitchman, promoting a long-discussed LNG project in Alaska that would bring gas from the state’s North Slope some 800 miles to a terminal on its Pacific Coast at Cook Inlet.
The project has been talked about for decades, but its high price (last estimated at around $44 billion — though that was in 2015) and uncertainty about LNG demand have prevented it from getting underway. While the project’s developer, Glenfarne Group, has won preliminary commitments from Asian buyers, it has yet to get final commitments or make a final investment decision.
Burgum has been a cheerleader for Alaska LNG since before the current war with Iran, saying in December that the project “strengthens U.S. energy security, creates jobs for Alaskans, and reinforces our commitment to a permitting system.” When he made a brief stop in Anchorage earlier this month on his way to an energy conference in Tokyo, he used the opportunity to sell Alaska LNG alongside the state’s governor, Mike Dunleavy.
“We have enough energy to be able to sell to our friends and allies so they don’t have to buy from our adversaries or be threatened by our adversaries in terms of their supply chains,” Burgum told reporters, according to the Anchorage Daily News. “So that policy is more important than ever.”
The conference itself had been planned before the war in Iran began. Upon landing there, Burgum told Bloomberg that the “urgency” around investing in and buying U.S. energy “had gone up,” due to the war.
Adam Prestidge, president of Glenfarne’s Alaska LNG project, echoed Burgum at a state legislative hearing on Monday, according to the Daily News.
“The direct impacts of the events in Iran have been a real acceleration and intensification,” Prestidge told legislators. Late last week, Dunleavy called for legislation creating a property tax exemption for the project to ease its path to completion, a sign that it’s gathering steam and may actually, finally come to fruition.
For months, American officials have badgered Europe to revise rules on methane emissions set to go into effect next year, which will require energy importers to demonstrate that the “monitoring, reporting, and verification requirements” for preventing methane emissions in export countries are “equivalent to those applied domestically in the E.U.,” or else face penalties. Late last year, American diplomats told European Union officials that the U.S. should be exempt from the rules and from any penalties for noncompliance, The New York Times reported. Secretary of Energy Chris Wright has argued that the rules would be ineffective and would constitute “regulatory overreach.”
Earlier this week, the American ambassador to the European Union, Andrew Puzder, told Bloomberg that Europe is “going to need to reduce the regulatory requirements and restrictions that it has in place,” adding that “It could be a very severe energy crisis if Europe doesn’t act,” given the conflict in the Gulf.
The Trump administration has also leveraged the energy crisis to keep the E.U. in line on trade, with Puzder telling the Financial Times that the bloc should approve the trade deal negotiated by Trump and European Commission President Ursula von der Leyen last July lest the E.U. risk losing “favorable” access to liquified natural gas. A key component of the deal was a minimum tariff on European Union goods — part of the set of tariffs that was thrown out by the Supreme Court last month. Trump quickly implemented a temporary global tariff on all imports, however, and the European Parliament voted on Thursday to advance their side of the deal, eliminating many tariffs on U.S. goods.
Wright has also been calling on American oil producers to drill more, a more or less constant mantra from throughout Trump’s political life.
“Prices went up to send signals to everyone that can produce more: ‘Please, produce more,’” Wright said during a speech Monday at the CERAWeek energy conference in Houston. At the same time, he said that “prices have not risen high enough yet to drive meaningful demand destruction,” and pointed to Trump administration efforts to keep prices contained, such as releasing 172 million barrels of oil from the Strategic Petroleum Reserve.
Burgum was similarly optimistic about oil prices, telling Politico earlier this week that high prices would last “weeks not months.”
So far, there’s little evidence that American oil drillers are substantially overhauling their investment plans. Oil investors still prefer to see “capital discipline,” meaning that the impetus for substantially increased drilling may have to be permanently higher prices — exactly what the Trump administration doesn’t want.
“Capital discipline in key U.S. operators — both oil and gas-focused — is still in place, despite recent uptick in oil prices,” Mizuho analyst Nitin Kumar wrote in a note to clients Wednesday. One executive told the Mizuho analysts that “resource depth, service costs, and cost of capital” are “key barriers to a short-term supply response” from shale drillers. Kumar wrote that “this, in our view, is positive for commodity prices over the longer term, even assuming a deescalation of hostilities in the Middle East.”
On March 10, the U.S. Energy Information Administration bumped up its forecast for American oil production in 2026 by 500,000 barrels per day, to 13.8 million barrels. That same forecast assumed that Brent crude prices would remain above $95 per barrel “over the next two months.”
By far the most effective price intervention since the war began has been Trump’s various indications that it will be over soon. Oil benchmarks fell substantially after Trump announced a five-day moratorium on hitting Iranian energy infrastructure on Monday and as reports of negotiations to possibly end the war emerged, with West Texas Intermediate Crude falling from almost $100 a barrel to around $87 before rising back up to $93. Trump extended his deadline to Iran Thursday for another ten days to April 6.
Trump’s hostility toward renewables is also largely unchanged — just days after the Department of Justice declined to appeal a ruling in favor of an offshore wind project, the administration struck a deal with French energy company TotalEnergies that, in effect, trades an offshore wind lease for investment in natural gas.
“The irony in all of this is it’s driving many, many more countries to look to China for all the different electricity technologies,” Josh Freed, senior vice president for the climate and energy program at Third Way, a center-left think tank, told me. “This is a real own goal by the United States by abandoning domestic development of electricity technology.”
Nor, in a more unstable and uncertain energy world, is the U.S. seeking to become a major exporter of green technology to countries that are looking to reduce their reliance on fossil fuels. The administration has yanked funding from dozens of green industrial projects and overseen a dramatic fall in electric vehicle sales, while battery capacity is being converted for use by data centers.
It’s not even clear where the money is coming from.
President Trump’s Day One moratorium on offshore wind leasing and permitting was vacated by a federal judge in December. Weeks later, the president issued stop-work orders on five offshore wind projects that were under construction, citing unspecified national security concerns, but those orders were also soon rejected one by one by the courts.
Trump’s agreement with TotalEnergies this week to buy back the company’s offshore wind leases appears to represent a new tactic to destroy the industry — by paying it to go away.
Total’s CEO, Patrick Pouyanné told CNBC Tuesday that the company was the “first to open the door” to such a deal, and that he suspects the administration “will do other deals with other companies.” The U.S. has sold roughly 40 leases for offshore wind development since 2012, but only eight wind farms have gotten to the construction phase.
Even if other companies were willing to sell their development rights back to the federal government, however, there’s no reason to believe this strategy is any more legally sound than Trump’s stop work orders or permitting pause.
“In virtually all of the instances so far, they are taking steps that are unlawful and certainly unprecedented,” Elizabeth Klein, who served as director of the Bureau of Ocean Energy Management under President Biden, told me, referring to Trump’s efforts to obstruct offshore wind development. “So I don't think they should be given any benefit of the doubt that what they’re doing here is a lawful approach, or that they have the authorization to do what they are doing.”
Key details about the deal have yet to be disclosed, including under what authority the Department of the Interior has agreed to pay Total and where the money is coming from. Here’s what we know and don’t know about the agreement, and the questions it raises about whether this deal was lawful and whether it can be replicated. Neither TotalEnergies nor the Department of the Interior responded to questions for this story.
According to the Department of the Interior’s press release announcing the deal, Total will invest $928 million — the amount it paid for two offshore wind leases in 2022 — in oil and gas production in the United States. Following those investments, the government will terminate Total’s wind leases and reimburse the company for the $928 million.
But the revenue the Department brought in from the 2022 lease sale is not just sitting in the agency’s coffers waiting to be refunded. It went to the Treasury’s General Fund, Klein, told me. The question, then, is what money is the agency using to reimburse Total?
“Has Interior been appropriated $1 billion to refund Total?” Klein asked. “Is there litigation that we all don't know about, and this is part of a settlement? There's a number of questions about how Interior is authorized to take this action.”
On its face, canceling a lease isn’t so extraordinary. The Secretary of the Interior is allowed to terminate a lease agreement if, say, the leaseholder violates the terms, and leaseholders are also allowed to voluntarily relinquish their leases. But in neither case does the law say they are entitled to their money back.
“There's no regulatory authorization that I am aware of that allows Interior to just refund the amount that a lease cost,” Klein said. She noted that Shell, the oil company, let go of almost all of its oil and gas leases in the Chukchi and Beaufort Seas during Obama’s presidency because it determined it could not economically develop them. The company had spent more than $2 billion on the leases and did not get any of that back.
A straightforward reading of the Interior Department’s press release sounds like the agency is taking revenue from an offshore wind lease sale and using it to subsidize oil and gas investments. That would be violating the U.S. Constitution, which says that “No money shall be drawn from the Treasury, but in consequence of appropriations made by law.” The Interior cannot just pay out $928 million in lease refunds or oil and gas subsidies to a company without Congress appropriating funds for that purpose.
That does not appear to be what’s happening here, given that Representative Chellie Pingree of Maine, the ranking member on the House Appropriations subcommittee that oversees the Interior Department’s funding, issued a statement saying that she has “serious questions about where this money is coming from.”
That leaves the other possibility Klein raised — a settlement. TotalEnergies does, in fact, describe the deal as a “settlement” in its own press release. During Pouyanné’s CNBC interview, the CEO claimed that after Trump paused permitting for offshore wind projects, Total issued an ultimatum.
“We went to the government: ‘Look, we could either go to litigate with you. I’d hate that. It is not at all our philosophy,’” he said. “‘Or we enter into a deal. The deal is quite simple. We propose to give you back this license. We paid the Treasury $930 million. You give us back the $930 million, and we are ready to commit that we will invest them in U.S. energy.”
If Total did indeed threaten to sue the Interior Department for halting permitting, the agency may have been authorized to pay Total out of the “judgement fund,” an essentially bottomless fund overseen by the Department of Justice intended for agency settlements. Use of the judgement fund requires evidence of litigation or imminent litigation and approvals from the Department of Justice and the Treasury Department. Considering that Attorney General Pam Bondi was quoted on the Interior Department’s press release, this appears to be the most likely source of the funds.
There are problems with this version of the story, too, however. Pouyanné said the company threatened litigation over Trump’s permitting pause, but again, a court tossed out that permitting pause in December. While the administration is appealing the court’s decision, the judgment weakens Total’s claim and raises questions about the Interior Department’s need to settle, let alone for $928 million. The court’s decision also undermines the case for future settlements with other leaseholders.
Tony Irish, a former solicitor in the Interior Department’s Division of General Law, told me that Pouyanné’s story brings to mind a tactic known as “sue and settle.” The term, which has historically been lobbed at environmental groups, describes a situation in which an interest group sues an administration — typically one friendly to its cause — as a way to advance policy goals without public input. Rather than try to dismiss the claim, the administration settles with the group behind closed doors, often agreeing to initiate new rules as a result. More conspiratorial critics of this practice contend that federal agencies have even colluded with outside groups to file such lawsuits.
There’s been more than a decade of debate over whether this perception of “sue and settle” cases is a real phenomenon or not. Nevertheless, Secretary of the Interior Doug Burgum vowed to address the issue by increasing transparency of agency settlements. Last summer, he issued an order stating that the department’s settlements would be subject to public disclosure. The order describes the creation of an online “litigation transparency portal” where the agency will post all ongoing and resolved settlement agreements, including finalized agreements.
That website has not yet been created, however. To date, nothing related to the Total settlement, if it is a settlement, has been posted to the Bureau of Ocean Energy Management webpages for the leases or in the Federal Register.
Without having access to that documentation, it’s impossible to scrutinize the circumstances that led the Trump administration to settle for such an exorbitant fee. To Irish, the available evidence is consistent with a misuse of power. “It upends the rule of law for agencies to selectively pay off favored parties negatively impacted by a policy choice by just calling it a legal settlement and using an unlimited account of taxpayer funds,” Irish said.
On ethanol’s win, India’s ‘modest’ renewables target, and ‘transformative’ NRC changes
Current conditions: The first forecasts for the 2026 Atlantic hurricane season project up to four major storms and up to 16 named storms, roughly the same as last year • Florida is facing its driest stretch in years, with 72% of the state undergoing the two worst levels of drought possible right at the start of the growing season • Ajman, the United Arab Emirates’ fifth most-populous city, is enduring record rainfall as storms are expected to continue through the end of the week.
Anyone who watched television in America in the late 1990s should remember the Got Milk-esque slogan from the industry’s landmark advertising campaign: “Plastics make it possible.” Well, it turns out safe passage through the Strait of Hormuz makes plastics possible. On Tuesday, chemical maker Dow told customers that it plans to double a previously announced price hike on plastic resins as the war in Iran chokes off the supply of raw materials. The move, first reported in The Wall Street Journal, comes a week after Dow CEO James Fitterling told investors at a conference that the company planned to raise the price of polyethylene by $0.15 per pound in April, after hiking the price by $0.10 this month. Now Dow plans to increase the price by $0.30 per pound. Rival producers such as LyondellBasell and Exxon Mobil are imposing their own price hikes. Used to make shopping bags, plastic bottles, and other goods, polyethylene is typically made with natural gas in the U.S., where the fuel is abundant, and with naphtha, a hydrocarbon derived from crude oil, elsewhere in the world. The prices of both polyethylene and naphtha “have gone vertical since the start of the war,” Bloomberg broadcaster Joe Weisenthal noted in a post on X after covering the soaring costs on his latest “Odd Lots” podcast.
On a positive note, new analysis from the consultancy BloombergNEF found that “a large share” of the Persian Gulf’s oil production “could return relatively quickly, should the Strait of Hormuz reopen and midstream operations normalize.” Still, “a full recovery will be uneven and field-specific.” Fields could restart and ramp up production in at most seven weeks. Senate Minority Leader Chuck Schumer, meanwhile, outlined Democrats’ vision to take on higher prices with a general framework that calls for expanding renewables, cutting red tape on energy infrastructure, and upgrading the grid with more transmission capacity. Renewables are providing a boost elsewhere: The British renewables giant Octopus Energy told the BBC it’s seen a 50% rise in solar panel sales since the start of the Iran War.
The Environmental Protection Agency handed an easy victory to the biofuels industry Wednesday, approving the sale of higher-ethanol blends of gasoline in a bid to bring down surging prices at the pump by augmenting petroleum with corn. The higher blend is typically banned in warm weather because it can worsen smog. But waivers for what’s called E15 fuel have “become commonplace in recent years, and both Republicans and Democrats have called for it to become year-round and permanent to lower prices at the pump,” the Associated Press reported. It’s already allowed in some states: Iowa (the epicenter of the ethanol industry), Illinois, Minnesota, Nebraska, Missouri, Wisconsin, and most of South Dakota. EPA Administrator Lee Zeldin announced the waiver at the CERAWeek energy conference in Houston, where he held a press conference on the issue but then took no questions from journalists, according to Heatmap’s Robinson Meyer, who is on the ground at the confab.
The U.S. Postal Service, meanwhile, plans to impose its first-ever surcharge on packages to cover the rising cost of fuel and transportation. The 8% fee is set to come into effect on April 26, though the current plan would phase out the surcharge on January 17, 2027, according to The Wall Street Journal. Private parcel carriers, including FedEx and United Parcel Service, have imposed fuel surcharges for years, but this is the first time the federal agency is doing so in a bid to stabilize its finances.
India’s electricity demand is soaring as the world’s most populous nation inks trade deals left and right with the world’s major economies, which are looking to shift their supply chains away from China. Yet the heavily coal-dependent nation set what the Financial Times called just “modest goals for renewable energy and emissions cuts for the next decade.” On Wednesday, Prime Minister Narendra Modi unveiled the country’s latest clean energy targets, promising a “people-centric approach” to “accelerating clean energy and green growth.” But in the long-delayed document, which all countries were due to submit to the United Nations a year ago, the Modi government pledged to reduce emissions relative to its gross domestic project by 47% by 2035, compared to 2005 levels. The blueprint also promised renewables would make up 60% of India’s cumulative installed electricity capacity by 2035, well below the country’s Central Electricity Authority estimates that by 2036 nearly 70% of India’s power would come from non-fossil fuel sources.
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I have written repeatedly in this newsletter that the metals industry is more concerned about the West’s capacity to refine ore into useful materials than it is about the capacity to extract more minerals from mines. Here’s the umpteenth example: Speaking to a Reuters reporter at CERAWeek, the mining giant Rio Tinto said it plans to open its Resolution Copper facility in Arizona in the mid-2030s. But a senior executive told the newswire the company may need to export some of its copper concentrate due to the challenging economics of smelting in the U.S. When Heatmap’s Jeva Lange visited the town that would host the mine, experts told her “much if not all of the raw copper extracted at Oak Flat to China for processing.”
Fermi America’s Project Matador, the sweeping data center campus in Texas designed to be powered by large nuclear reactors and gas plants, is officially the guinea pig for the Nuclear Regulatory Commission’s new pilot program to modernize how the agency conducts environmental reviews. Under the new approach, the NRC allows applicants to develop a draft Environmental Impact Statement. “By rethinking the traditional review process, the program is expected to reduce in-house NRC review time by approximately 50% and deliver resource savings of about 30%, all while maintaining compliance with environmental requirements,” the NRC said. Fermi America is the first private company to participate in the pilot, which World Nuclear News called “transformative.”
TerraPower, the Bill Gates-backed next-generation reactor development, announced a new engineering platform designed with the consultancy SoftServe and powered by Nvidia’s Omniverse artificial intelligence-based modeling platform. The software will “rapidly accelerate the siting and design” of TerraPower’s liquid sodium-cooled Natrium reactor “from years to months,” the company said in a press release. “To meet growing power demand, advanced nuclear plants must move to construction faster, with higher design precision and disciplined execution,” Eric Williams, TerraPower’s chief operating officer, said in a statement. “With our initial Natrium plant design complete, we are able to leverage our partnerships with Nvidia and SoftServe to deploy an AI-powered digital twin to enhance our engineering team’s efforts and greatly improve our speed to market capabilities.”
If you thought a war that cuts off global fertilizer supplies right at the start of growing season was concerning, just wait until you find out about the plague of locusts descending on five of Russia’s farming regions. The Kremlin’s agricultural officials say data indicates that locust populations have survived the winter in significant numbers, threatening “widespread crop losses” in the Chechnya, Khakassia, Dagestan, as well as the Volgograd and Saratov regions, according to Fertilizer Daily.