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Climate

Interior Launches a Witch Hunt on Pro-Renewable Policies

On FERC’s ‘disastrous misstep,’ the World Court’s climate ruling, and 127 SMRs

Interior Launches a Witch Hunt on Pro-Renewable Policies
Heatmap Illustration/Getty Images

Current conditions: The U.S. Northeast faces more flash flooding as cooling temperatures usher in rainfall • Scandinavia’s weeks-long heatwave continues, with temperatures reaching nearly 90 degrees Fahrenheit • The death toll from China’s heavy rains rose to 34, with as many as 80,000 people displaced.

THE TOP FIVE

1. The Fed holds rates steady in a hit to renewables

The U.S. Federal Reserve board decided on Wednesday to hold interest rates steady at between 4.25% and 4.5%, in defiance of President Donald Trump’s call for looser policy. This also added to the headwinds facing renewables developers.

When borrowing costs are higher, it’s harder to lure investors to back projects. That dynamic is even more challenging for construction projects that take even longer and therefore accrue more interest, such as nuclear reactors or hydroelectric upgrades. “Developers rushing to build solar and wind energy between now and next summer to take advantage of tax credits will have to pay out these higher interest costs as they build,” Advait Arun, senior associate of energy finance at the Center for Public Enterprise and a Heatmap contributor, told my colleague Charu Sinha.

2. Interior chief orders agency to weed out pro-renewables policies

  Interior Secretary Doug BurgumJohn McDonnell/Getty Images

In a secretarial order on Tuesday, Secretary of the Interior Doug Burgum directed his department to eliminate policies that give “preferential treatment” to wind and solar. The directive also orders the agency to consider withdrawing “areas onshore with high potential for wind energy development” from federal leasing and to ramp up studies on the effects of wind turbines on migratory birds.

“These policy changes represent a commonsense approach to energy that puts Americans’ interests first,” Burgum said in a statement. “Leveling the playing field in permitting supports energy development that’s reliable, affordable, and built to last.” The move “will result in higher energy costs, increased blackouts, job loss, and billions of dollars in stranded investments, further delaying shovel-ready projects supported by a domestic heavy manufacturing supply chain renaissance that spans 40 states,” said Stephanie Francoeur, a spokesperson for the green group Oceantic Network. “Crippling affordable and reliable wind energy makes no economic sense and undermines the administration’s ‘all-of-the-above’ energy strategy.”

3. Ford teases building ‘breakthrough’ EVs in the U.S.

Ford’s vehicle sales rose 14% to more than 612,000 in the last quarter, according to earnings that bested analysts’ expectations on Wednesday. But EV sales dropped 31% to just 16,438. The company told Electrek that demand for its F-150 Lightning had slumped and the Mustang Mach-E faced a recall, preventing the spike in Ford’s EV sales GM saw in the last quarter. But that isn’t stopping the Detroit giant from investing more in EVs.

Ford CEO Jim Farley teased an upcoming announcement about the company’s “plans to design and build breakthrough electric vehicles in America.” Farley said Ford wouldn’t compete with South Korean or Japanese brands in the mass-market EV space, but rather would invest in the truck and SUV market. More details are set to come at an event in Kentucky on August 11.

4. Trump nominates a new nuclear regulator

The White House nominated an executive from Southern Company to serve in the open seat on the Nuclear Regulatory Commission. Ho Nieh, who serves as the utility giant’s vice president of regulatory affairs, previously led the NRC’s Office of Nuclear Reactor Regulation before joining Southern right as the company completed work on the only two new reactors built from scratch in the U.S. in a generation, the pair of Westinghouse AP1000s at the Alvin W. Vogtle Generating Station in northern Georgia.

The nomination, now subject to Senate approval, came a month after Trump fired Democratic Commissioner Christopher Hanson in a move that critics said violated the NRC’s legal independence from the White House. Trump will now have another seat to fill. On Tuesday, Annie Caputo, a Republican commissioner who Trump initially appointed in 2017, abruptly resigned amid a series of dramatic overhauls at the agency that include demands from the Trump administration that the regulators “rubber stamp” new reactors. In her farewell email to NRC staff – a copy of which I obtained and published on my Substack newsletter, Field Notes – she said she planned to focus on her family.

5. Helion starts construction on the first nuclear fusion power plant

Helion has started work on what could be the world’s first nuclear fusion power plant in Washington State. The Microsoft-backed startup broke ground on the facility, called the Orion plant, in Chelan County, east of Seattle, and set a goal to deliver power to the tech giant’s data centers in the state by 2028. Microsoft and Helion made history in May 2023 with the world’s first power purchase agreement for nuclear fusion, with Helion promising to deliver up to 50 megawatts of electricity following a ramp-up period of one year. The project is set to hook onto the Washington grid.

Helion isn’t the only fusion startup in the race to deliver power first. In December, Commonwealth Fusion Systems announced plans to build its debut power plant in Virginia. Those ambitious promises explain why investors have pumped $2.5 billion into fusion energy over the past two years, according to newly released industry data.

THE KICKER

Physicists have at last developed a device precise enough to catch neutrinos, the subatomic particles that are at least a million times smaller than an electron, from a nuclear reactor. According to Nature, the discovery “opens new ways to stress-test the known laws of physics and to detect the copious neutrinos produced in the hearts of collapsing stars.” Calling the result “beautiful,” Kate Scholberg, a Duke University physicist, was elated: “They finally did it.”
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Electric Vehicles

AM Briefing: Scientists Decry ‘Surreal’ Climate Attack

On America’s new crude record, coal costs, and Hungary’s SMR deal

Scientists Decry Trump’s ‘Surreal’ Attack On Climate Science
Heatmap Illustration/Getty Images

Current conditions: Coastal storms are pushing water levels on New England’s shores two feet above normal levels • Japan just set a new temperature record of more than 106 degrees Fahrenheit • A cold front is settling over South Africa, bringing gale-forces to KwaZulu-Natal on the east coast.

THE TOP FIVE

1. Scientists decry Energy Department’s climate skeptic report

The Department of Energy issued a report on Tuesday calling into question the global consensus on climate change and concluding that global warming poses less economic risk than previously believed. “The rise of human flourishing over the past two centuries is a story worth celebrating. Yet we are told — relentlessly — that the very energy systems that enabled this progress now pose an existential threat,” Secretary of Energy Chris Wright said in a statement. “Climate change is real, and it deserves attention. But it is not the greatest threat facing humanity.” But scientists whose work appeared in the 151-page report decried an analysis they said “fundamentally misrepresents” their research. I rounded up some comments they’ve made over the past couple of days:

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Hotspots

Vineyard Wind Is Besieged Again

And more of the week’s most important conflicts around renewable energy.

The United States.
Heatmap Illustration/Getty Images

1. Nantucket County, Massachusetts – The fight over Vineyard Wind is back with a vengeance. But can an aggrieved vacation town team up with conservative legal activists to take down an operating offshore wind project?

  • The offshore wind project, which was completed in 2021 and currently provides power to Massachusetts, was threatened this week when Nantucket signaled it may sue Vineyard Wind over a laundry list of demands related to the facility and last year’s blade breakage. Then less than 24 hours later, the Texas Public Policy Foundation – a conservative legal advocacy group – filed a petition to the Interior Department requesting it not only reconsider previous permits issued for Vineyard Wind but also halt operations at the site.
  • It’s hard to ignore the timing here: before this flurry of activity, the Interior Department released a new secretarial order that laid out many ways it would potentially go after wind facilities. One method would be potentially settling lawsuits filed against both offshore and onshore wind projects in favor of plaintiffs.
  • We are still waiting to see if Interior will take up the Vineyard Wind petition. But this activity suggests that opponents of offshore wind feel increasingly emboldened by the anti-renewables direction that Trump has taken in recent weeks, and we may soon find out if their aspirations for killing operating projects are well-founded.

2. Henry County, Virginia – A fresh fiasco around a solar farm is renewing animus against solar projects in the Commonwealth of Virginia.

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Politics

Trump’s Forgotten Funding Freeze

More than $760 million from the Inflation Reduction Act’s Green and Resilient Retrofit Program is still caught in legal limbo — but no one seems to have noticed.

A hammer and nail far from each other.
Heatmap Illustration/Getty Images

When a federal judge put an injunction on the Trump administration’s efforts to freeze Inflation Reduction Act funding back in April, many grantees were able to pick up their clean energy projects where they left off. But not everyone.

Some 100 low-income housing providers that won more than $760 million in grants and loans from the IRA’s Green and Resilient Retrofit Program to make critical safety and energy upgrades to their buildings are still in limbo. The U.S. Department of Housing and Urban Development will not respond to their questions about if or when projects can move forward, and also fired all of the third-party contractors that had been hired to implement the program.

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