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The fire was “fueled by drought and hurricane-force winds.” It “jumped from one home to the next,” the local news later reported, and “moved in unpredictable and unprecedented ways.” Camera phone videos showed shaky scenes of last-minute evacuations — a “dizzyingly chaotic display of improvisation and panic.” The fire had apparently ignited in dry invasive grasses outside of town, perhaps due to a downed power line, before blowing into an unstoppable “urban firestorm.” Airborne embers destroyed hundreds of structures, leaving behind ashen ruins that survivors said looked like a war zone.
It was December 30, 2021. The Marshall fire would become the most destructive in Colorado’s history, ultimately killing two people, causing 35,000 to flee, and destroying more than 1,000 homes and businesses outside of Boulder. But to an untrained eye, the landscape hardly looked like a place where a wildfire could break out; after all, there was no forest. “It was 200 yards from a Costco — why would I have to worry about fire?” one survivor recounted to The Washington Post afterward. “It’s, like, suburbia, you know?”
But grass fires are a growing danger in the United States, even if they lack the iconic imagery of the forest fires that tend to dominate the news this time of year. The 2018 Martin fire in Nevada, the largest in the state’s history, burned 435,000 acres of invasive cheatgrass and at one point stretched 54 miles long. The 2006 East Amarillo Complex fire in Texas blackened almost a million acres. And the wildfires in Maui this month were the deadliest in modern U.S. history, in part because they ignited in highly flammable non-native grasses, which burn hot, fast, and unpredictably.
“They’re too intense for firefighters to get next to with either ‘dozers or engines,” Brad Smith, the Predictive Services department head at Texas A&M Forest Service, told me of the wind-driven grass fires he sees across Texas. “They also move too fast, so it’s dangerous to put people out in front of these fires. It’s often the case we have to wait either for the weather to change or for the fire to move into a more favorable fuel type,” such as plowed agricultural land, before first responders can get it under control.
I had reached out to Smith after seeing him dispense grassland firefighting advice in a 2011 educational video for firefighters titled, “Oh, It’s Just a Grass Fire.” Produced by the Wildland Fire Lessons Learned Center — a grimly named government agency that exists to “share lessons and knowledge within the entire wildland fire community” — the video was apparently intended to head off dismissals of what it calls a “potentially underestimated fuel type.”
Such an underestimation in the industry comes from the fact that grass fires can actually have “a few advantages” for wildland firefighters, as authors Justin Angle and Nick Mott write in their forthcoming guide This Is Wildfire. “There are a lot of fire-fighting strategies that are just more feasible in a grassy landscape that’s more open and has more fuel breaks like roads and bodies of water,” the authors go on to explain. “In addition, the fuel type is more homogenous (and therefore predictable) compared with a mountain ecosystem.”
But throw in high winds, and all of a sudden grassland fires can become a completely different beast. “People think [wildfires] just move in one direction, but winds generally quarter,” Smith said. “So let’s say you have a north wind; you think, Well, [the fire] is going south. But if you get a 45-degree change in direction, that fire can move left or right for short periods of time very quickly. That can catch people by surprise.” In the instructional video, this point is made with the cautionary tale of Destry Horton, a father of two who was killed fighting a grass fire in Oklahoma in 2006.
But if even firefighters need the occasional somber refresher to take grass fires seriously, then many of the rest of us have likely barely registered them as a threat. “I think a lot of people look at a grass fire and feel like, ‘Well, I could just go stomp it out,’” Barb Satink Wolfson, the University of California’s Cooperative Extension fire advisor for Monterey, San Benito, Santa Clara, and Santa Cruz counties, told me.
Perhaps that’s partially because “forest fire” is often interchanged with “wildfire,” inadvertently evoking the conflagration out of Bambi: popping evergreen trees, flames reaching for the sky, adorable woodland animals running for cover. Reality looks a little different: Grassland pasture and range make up 60% of land use in the Mountain West and about 29% of land use in the Pacific Coast states, the most recent survey by the United States Department of Agriculture found (compared to 18% and 29% forest-use land, respectively).
Fire statistics seem to bear that out: In a study of burns in 11 western states between 1984 and 2020, only 35% were actually in forests, Denver’s 5280 magazine reports. In another cited study, local fire departments “responded to forest fires just 7% of the time, compared to 39% for grass fires.” Smith also told me that of the 30 largest fires in Texas since 2000, 28 had “occurred in our grass-dominant fuel-scape in West Texas.”
The tragic consequence of the public not taking grass fires seriously — or not knowing to take them seriously — is that many people who live in wildland-urban interface communities near or adjacent to natural, undeveloped lands might not have made the proper wildfire preparations or have an evacuation plan because the fire threat feels remote.
That can prove deadly. A quarter of Hawaii is covered in highly flammable non-native grasses and “virtually every community [in the state] is on a wildland-urban interface,” one fire manager recently told Wired. Yet the communities were unsuspecting and unprepared for the fire that swept through Lahaina and the surrounding landscape last week. Part of that is because fire is “not something that has been a part of ... society in Hawaii,” Satink Wolfson said, adding: “There isn’t a big history of people telling [residents]: ‘You need metal gutters, you need to make your home fire safe.’”
Though fire is not a historic part of the ecology of Hawaii, it is in North American grasslands, where Indigenous communities have practiced cultural burning for centuries upon centuries. But non-native grass species are likewise disrupting these natural cycles in the western United States, since invasive plants tend to grow thickly and contiguously, unlike native perennials that grow in more isolated clumps that help naturally break up fires. By one estimate, invasive grasses can more than triple a region’s susceptibility to wildfire.
Making matters worse, non-native grasses tend to quickly colonize and outcompete native plants after burns, in effect bridging fire further and further into landscapes where it doesn’t belong, such as deserts — or urban environments. “Those non-native herbaceous species are like the wick,” Max Moritz, a Cooperative Extension wildfire specialist and adjunct professor at U.C. Santa Barbara’s Bren School of Environmental Science & Management, told me. “They’re the place that fire can get a foothold on the landscape, even if the landscape wasn’t supposed to burn very often from a fire ecology perspective.”
Increasingly, attention in the West has focused on allowing “good fires” to run their course — grass fires included. “I would love to see CalFire use natural ignitions to reduce fire hazard and to improve ecosystem health,” Satink Wolfson said. “I’ve already seen so many fires put out this year that could have had a positive impact.” Moritz’s focus is on better land-use planning, including rehabilitating abandoned farmlands into working buffer zones. Both Satink Wolfson and Moritz floated strategic grazing as another possibility. But everyone agrees: Something needs to be done.
“Grasslands — there’s a lot of area there to manage if you are hoping to reduce the ignition potential,” Moritz said, then ominously warned: “It’s almost all ignitable.”
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This week is light on the funding, heavy on the deals.
This week’s Funding Friday is light on the funding but heavy on the deals. In the past few days, electric carmaker Rivian and virtual power plant platform EnergyHub teamed up to integrate EV charging into EnergyHub’s distributed energy management platform; the power company AES signed 20-year power purchase agreements with Google to bring a Texas data center online; and microgrid company Scale acquired Reload, a startup that helps get data centers — and the energy infrastructure they require — up and running as quickly as possible. Even with venture funding taking a backseat this week, there’s never a dull moment.
Ahead of the Rivian R2’s launch later this year, the EV-maker has partnered with EnergyHub, a company that aggregates distributed energy resources into virtual power plants, to give drivers the opportunity to participate in utility-managed charging programs. These programs coordinate the timing and rate of EV charging to match local grid conditions, enabling drivers to charge when prices are low and clean energy is abundant while avoiding periods of peak demand that would stress the distribution grid.
As Seth Frader-Thompson, EnergyHub’s president, said in a statement, “Every new EV on the road is a win for drivers and the environment, and by managing charging effectively, we ensure this growth remains a benefit for the grid as well.”
The partnership will fold Rivian into EnergyHub’s VPP ecosystem, giving the more than 150 utilities on its platform the ability to control when and how participating Rivian drivers charge. This managed approach helps alleviate grid stress, thus deferring the need for costly upgrades to grid infrastructure such as substations or transformers. Extending the lifespan of existing grid assets means lower electricity costs for ratepayers and more capacity to interconnect new large loads — such as data centers.
Google seems to be leaning hard into the “bring-your-own-power” model of data center development as it looks to gain an edge in the AI race.
The latest evidence came on Tuesday, when the power company and utility operator AES announced a partnership with the hyperscaler to provide on-site power for a new data center in Texas. signing 20-year power purchase agreements. AES will develop, own, and operate the generation assets, as well as all necessary electricity infrastructure, having already secured the land and interconnection agreements to bring this new power online. The data center is set to begin operations in 2027.
As of yet, neither company has disclosed the exact type of energy infrastructure that AES will be building, although Amanda Peterson Corio, Google’s head of data center energy, said in a press release that it will be “clean.”
“In partnership with AES, we are bringing new clean generation online directly alongside the data center to minimize local grid impact and protect energy affordability,” she said.
This announcement came the same day the hyperscaler touted a separate agreement with the utility Xcel Energy to power another data center in Minnesota with 1.6 gigawatts of solar and wind generation and 300 megawatts of long-duration energy storage from the iron-air battery startup Form Energy.
The microgrid developer Scale has acquired Reload, a “powered land” startup founded in 2024, for an undisclosed sum. What is “powered land”? Essentially, it’s land that Reload has secured and prepared for large data centers customers, obtaining permits and planning for onsite energy infrastructure such that sites can be energized immediately. This approach helps developers circumvent the years-long utility interconnection queue and builds on Scale’s growing focus on off-grid data center projects, as the company aims to deliver gigawatts of power for hyperscalers in the coming years powered by a diverse mix of sources, from solar and battery storage to natural gas and fuel cells.
Early last year, the Swedish infrastructure investor EQT acquired Scale. The goal, EQT said, was to enable the company “to own and operate billions of dollars in distributed generation assets.” At the time of the acquisition, Scale had 2.5 gigawatts of projects in its pipeline. In its latest press release the company announced it has secured a multi-hundred-megawatt contract with a leading hyperscaler, though it did not name names.
As Jan Vesely, a partner at EQT said in a statement, “By bringing together Reload’s campus development capabilities, Scale’s proven islanded power operating platform, and EQT’s deep expertise across energy, digital infrastructure and technology, we are supporting a more integrated approach to delivering power for next-generation digital infrastructure today.”
Not to say there’s been no funding news to speak of!
As my colleague Alexander C. Kaufman reported in an exclusive on Thursday, fusion company Shine Technologies raised $240 million in a Series E round, the majority of which came from biotech billionaire Patrick Soon-Shiong. Unlike most of its peers, Shine isn’t gunning to build electricity-generating reactors anytime soon. Instead, its initial focus is producing valuable medical isotopes — currently made at high cost via fission — which it can sell to customers such as hospitals, healthcare organizations, or biopharmaceutical companies. The next step, Shine says, is to scale into recycling radioactive waste from spent fission fuel.
“The basic premise of our business is fusion is expensive today, so we’re starting by selling it to the highest-paying customers first,” the company’s CEO, Greg Piefer told Kaufman, calling electricity customers the “lowest-paying customer of significance for fusion today.”
On the solar siege, New York’s climate law, and radioactive data center
Current conditions: A rain storm set to dump 2 inches of rain across Alabama, Tennessee, Georgia, and the Carolinas will quench drought-parched woodlands, tempering mounting wildfire risk • The soil on New Zealand’s North Island is facing what the national forecast called a “significant moisture deficit” after a prolonged drought • Temperatures in Odessa, Texas, are as much as 20 degrees Fahrenheit hotter than average.
For all its willingness to share in the hype around as-yet-unbuilt small modular reactors and microreactors, the Trump administration has long endorsed what I like to call reactor realism. By that, I mean it embraces the need to keep building more of the same kind of large-scale pressurized water reactors we know how to construct and operate while supporting the development and deployment of new technologies. In his flurry of executive orders on nuclear power last May, President Donald Trump directed the Department of Energy to “prioritize work with the nuclear energy industry to facilitate” 5 gigawatts of power uprates to existing reactors “and have 10 new large reactors with complete designs under construction by 2030.” The record $26 billion loan the agency’s in-house lender — the Loan Programs Office, recently renamed the Office of Energy Dominance Financing — gave to Southern Company this week to cover uprates will fulfill the first part of the order. Now the second part is getting real. In a scoop on Thursday, Heatmap’s Robinson Meyer reported that the Energy Department has started taking meetings with utilities and developers of what he said “would almost certainly be AP1000s, a third-generation reactor produced by Westinghouse capable of producing up to 1.1 gigawatts of electricity per unit.”
Reactor realism includes keeping existing plants running, so notch this as yet more progress: Diablo Canyon, the last nuclear station left in California, just cleared the final state permitting hurdle to staying open until 2030, and possibly longer. The Central Coast Water Board voted unanimously on Thursday to give the state’s last nuclear plant a discharge permit and water quality certification. In a post on LinkedIn, Paris Ortiz-Wines, a pro-nuclear campaigner who helped pass a 2022 law that averted the planned 2025 closure of Diablo Canyon, said “70% of public comments were in full support — from Central Valley agricultural associations, the local Chamber of Commerce, Dignity Health, the IBEW union, district supervisors, marine meteorologists, and local pro-nuclear organizations.” Starting in 2021, she said, she attended every hearing on the bill that saved the plant. “Back then, I knew every single pro-nuclear voice testifying,” she wrote. “Now? I’m meeting new ones every hearing.”
It was the best of times, it was the worst of times. It was a year of record solar deployments, it was a year of canceled solar megaprojects, choked-off permits, and desperate industry pleas to Congress for help. But the solar industry’s political clouds may be parting. The Department of the Interior is reviewing at least 20 commercial-scale projects that E&E News reported had “languished in the permitting pipeline” since Trump returned to office. “That includes a package of six utility-scale projects given the green light Friday by Interior Secretary Doug Burgum to resume active reviews, such as the massive Esmeralda Energy Center in Nevada,” the newswire reported, citing three anonymous career officials at the agency.
Heatmap’s Jael Holzman broke the news that the project, also known as Esmeralda 7, had been canceled in October. At the time, NextEra, one of the project’s developers, told her that it was “committed to pursuing our project’s comprehensive environmental analysis by working closely with the Bureau of Land Management.” That persistence has apparently paid off. In a post on X linking to the article, Morgan Lyons, the senior spokesperson at the Solar Energy Industries Association, called the change “quite a tone shift” with the eyes emoji. GOP voters overwhelmingly support solar power, a recent poll commissioned by the panel manufacturer First Solar found. The MAGA coalition has some increasingly prominent fans. As I have covered in the newsletter, Katie Miller, the right-wing influencer and wife of Trump consigliere Stephen Miller, has become a vocal proponent of competing with China on solar and batteries.
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MP Materials operates the only active rare earths mine in the United States at California’s Mountain Pass. Now the company, of which the federal government became the largest shareholder in a landmark deal Trump brokered earlier this year, is planning a move downstream in the rare earths pipeline. As part of its partnership with the Department of Defense, MP Materials plans to invest more than $1 billion into a manufacturing campus in Northlake, Texas, dedicated to making the rare earth magnets needed for modern military hardware and electric vehicles. Dubbed 10X, the campus is expected to come online in 2028, according to The Wall Street Journal.
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New York’s rural-urban divide already maps onto energy politics as tensions mount between the places with enough land to build solar and wind farms and the metropolis with rising demand for power from those panels and turbines. Keeping the state’s landmark climate law in place and requiring New York to generate the vast majority of its power from renewables by 2040 may only widen the split. That’s the obvious takeaway from data from the New York State Energy Research and Development Authority. In a memo sent Thursday to Governor Kathy Hochul on the “likely costs of” complying with the law as it stands, NYSERDA warned that the statute will increase the cost of heating oil and natural gas. Upstate households that depend on fossil fuels could face hikes “in excess of $4,000 a year,” while New York City residents would see annual costs spike by $2,300. “Only a portion of these costs could be offset by current policy design,” read the memo, a copy of which City & State reporter Rebecca C. Lewis posted on X.
Last fall, this publication’s energy intelligence unit Heatmap Pro commissioned a nationwide survey asking thousands of American voters: “Would you support or oppose a data center being built near where you live?” Net support came out to +2%, with 44% in support and 42% opposed. Earlier this month, the pollster Embold Research ran the exact same question by another 2,091 registered voters across the country. The shift in the results, which I wrote about here, is staggering. This time just 28% said they would support or strongly support a data center that houses “servers that power the internet, apps, and artificial intelligence” in their neighborhood, while 52% said they would oppose or strongly oppose it. That’s a net support of -24% — a 26-point drop in just a few months.
Among the more interesting results was the fact that the biggest partisan gap was between rural and urban Republicans, with the latter showing greater support than any other faction. When I asked Emmet Penney at the right-leaning Foundation for American Innovation to make sense of that for me, he said data centers stoke a “fear of bigness” in a way that compares to past public attitudes on nuclear power.

Gas pipeline construction absolutely boomed last year in one specific region of the U.S. Spanning Texas, Oklahoma, Kansas, Arkansas, Louisiana, Mississippi, and Alabama, the so-called South Central bloc saw a dramatic spike in intrastate natural gas pipelines, more than all other regions combined, per new Energy Information Administration data. It’s no mystery as to why. The buildout of liquified natural gas export terminals along the Gulf coast needs conduits to carry fuel from the fracking fields as far west as the Texas Permian.
Rob sits down with Jane Flegal, an expert on all things emissions policy, to dissect the new electricity price agenda.
As electricity affordability has risen in the public consciousness, so too has it gone up the priority list for climate groups — although many of their proposals are merely repackaged talking points from past political cycles. But are there risks of talking about affordability so much, and could it distract us from the real issues with the power system?
Rob is joined by Jane Flegal, a senior fellow at the Searchlight Institute and the States Forum. Flegal was the former senior director for industrial emissions at the White House Office of Domestic Climate Policy, and she has worked on climate policy at Stripe. She was recently executive director of the Blue Horizons Foundation.
Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap News.
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Here is an excerpt from their conversation:
Robinson Meyer: What’s interesting is the scarcity model is driven by the fact that ultimately rate payers that is utility customers are where the buck stops, and so state regulators don’t want utilities to overbuild for a given moment because ultimately it is utility customers — it’s people who pay their power bills — who will bear the burden of a utility overbuilding. In some ways, the entire restructured electricity market system, the entire shift to electricity markets in the 90s and aughts, was because of this belief that utilities were overbuilding.
And what’s been funny is that, what, we started restructuring markets around the year 2000. For about five or six or seven years. Wall Street was willing to finance new electricity. I mean, I hear two stories here — basically it’s another place where I hear two stories, and I think where there’s a lot of disagreement about the path forward on electricity policy, in that I’ve heard a story that, basically, electricity restructuring starts in the late 90s you know year 2000, and for five years, Wall Street is willing to finance new power investment based entirely on price risk based entirely on the idea that market prices for electricity will go up. Then three things happen: The Great Recession, number one, wipes out investment, wipes out some future demand.
Number two, fracking. Power prices tumble, and a bunch of plays that people had invested in, including then advanced nuclear, are totally out of the money suddenly. Number three, we get electricity demand growth plateaus, right? So for 15 years, electricity demand plateaus. We don’t need to finance investments into the power grid anymore. This whole question of, can you do it on the back of price risk? goes away because electricity demand is basically flat, and different kinds of generation are competing over shares and gas is so cheap that it’s just whittling away.
Jane Flegal: But this is why that paradigm needs to change yet again. Like ,we need to pivot to like a growth model where, and I’m not, again —
Meyer: I think what’s interesting, though, is that Texas is the other counterexample here. Because Texas has had robust load growth for years, and a lot of investment in power production in Texas is financed off price risk, is financed off the assumption that prices will go up. Now, it’s also financed off the back of the fact that in Texas, there are a lot of rules and it’s a very clear structure around finding firm offtake for your powers. You can find a customer who’s going to buy 50% of your power, and that means that you feel confident in your investment. And then the other 50% of your generation capacity feeds into ERCOT. But in some ways, the transition that feels disruptive right now is not only a transition like market structure, but also like the assumptions of market participants about what electricity prices will be in the future.
Flegal: Yeah, and we may need some like backstop. I hear the concerns about the risks of laying early capital risks basically on rate payers in the frame of growth rather than scarcity. But I guess my argument is just there’s ways to deal with that. Like we could come up with creative ways to think about dealing with that. And I’m not seeing enough ideation in that space, which — I would like, again, a call for papers, I guess — that I would really like to get a better handle on.
The other thing that we haven’t talked about, but that I do think, you know, the States Forum, where I’m now a senior fellow, I wrote a piece for them on electricity affordability several months ago now. But one of the things that doesn’t get that much attention is just like getting BS off of bills, basically. So there’s like the rate question, but then there’s the like, what’s in a bill? And like, what, what should or should not be in a bill? And in truth, you know, we’ve got a lot of social programs basically that are being funded by the rate base and not the tax base. And I think there are just like open questions about this — whether it’s, you know, wildfire in California, which I think everyone recognizes is a big challenge, or it’s efficiency or electrification or renewable mandates in blue states. There are a bunch of these things and it’s sort of like there are so few things you can do in the very near term to constrain rate increases for the reasons we’ve discussed.
You can find a full transcript of the episode here.
Mentioned:
Cheap and Abundant Electricity Is Good, by Jane Flegal
From Heatmap: Will Virtual Power Plants Ever Really Be a Thing?
Previously on Shift Key: How California Broke Its Electricity Bills and How Texas Could Destroy Its Electricity Market
This episode of Shift Key is sponsored by …
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Music for Shift Key is by Adam Kromelow.