You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
The consequences will linger well past the high temperatures.

It is difficult to describe how bonkers this week’s heat wave is in the southwestern United States. Alan Gerard, a typically even-keeled meteorologist with 35 years of forecasting experience under his belt, attempted to do so in a recent edition of his newsletter, Balanced Weather. He settled on: “jaw-dropping,” “insane,” “truly historic,” “literally flabbergasting,” “incredible,” and “anomalous [even for] the middle of summer.”
Jeff Berardelli, the chief meteorologist at WFLA, the NBC affiliate in Tampa, tried to contextualize it on social media, noting that based on historical patterns, Phoenix could expect a March day as hot as it was on Thursday — 105 degrees Fahrenheit — only once every 4,433 years.
Phoenix is just one part of the story. The heat wave — which began ramping up on Tuesday, peaks Friday, and won’t subside until early next week — has set or tied March record highs in at least 480 locations so far, stretching from New Mexico to Southern Oregon. California has already broken the record for the hottest winter day ever recorded anywhere in the U.S.: 109 degrees on Thursday at a station in the eastern Coachella Valley. “The extent and magnitude of this particular heat wave is without comparison to anything that we’ve seen in March,” John Abatzoglou, a professor of Climatology at the University of California, Merced, who specializes in climate impacts in the West, told me.
That’s partially because this heat wave would be “virtually impossible for the time of year in a world without human-induced climate change,” per a report released Friday by scientists from World Weather Attribution. Heat waves have one of the clearest climate signals of any extreme weather event because a hotter planet means a hotter baseline. “Across almost the entire western U.S., temperatures [this week] were made at least five times more likely due to climate change,” Zachary Labe, a climate scientist at Climate Central, which maps the effects on daily temperatures, told me.
The March 2026 heat wave is likely to become a reference point in the same vein as the 2021 heat dome in the Pacific Northwest, subject to study, research, and scrutiny by climatologists, public health experts, hydrologists, and emergency managers in the months and years to come. The consequences of the current heat wave will also outlast the record temperatures. When it is this hot — and, more importantly, when it is this hot this soon — the effects compound, touching everything from hydropower capacity to the coming wildfire season.
To make matters worse, “this week is exacerbating conditions that were already bad,” Labe said.
Let’s take a look.
About half of the total utility-scale hydroelectricity in the U.S. is generated in the three West Coast states, but it is part of the energy mix in almost every state experiencing the heat wave this week, including also Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, and Wyoming. In these states, high-elevation snowpack acts as a kind of battery; the slow release of melting winter snow from the mountains over the spring and summer helps keep generation reliable. In the case of a major heat wave, however, the water can run off too fast or evaporate, limiting supply in the summer-peaking months.
Though reservoirs in California are mostly in good shape at this point, with the rivers flowing high this early, there will be less water available when the squeeze comes in July and August. “This year, at least for precipitation, it’s been really quite good [in California],” Abatzoglou, the UC Merced professor, told me. The issue is, it’s also “just been way too damn warm.”
Every major river basin in the western U.S. experienced its first- or second-warmest winter this year, setting a grim stage for the high temperatures that have settled over the region this week. What little snowpack there already was — 97% of the snowpack-monitoring weather stations in Colorado are in snow drought — is now being hammered by the kind of heat the region doesn’t often experience before late spring or early summer. Daniel Swain, a climate scientist with the University of California Agriculture and Natural Resources, has warned that, as a result, we might see “June snowpack levels by April 1” in some parts of the West.
Of particular concern is what this will mean for Lake Powell, the reservoir created by the Glen Canyon Dam on the Colorado River, which supplies electricity to more than 5 million customers across seven states. The reservoir is a mere 40 feet away from the minimum volume required to turn the turbines in the dam, Bloomberg reports.
The early-season heat-driven runoff will further diminish the river’s already reduced flow in the coming months. Snow accumulation in the basin above Lake Powell was only at 67% of the 30-year median for March. Earlier this week, the U.S. Colorado Basin River Forecast Center downgraded its two-week-old forecast for inflows to Lake Powell during the critical April through July period from 2.3 million acre-feet of water to less than 1.8 million acre-feet. That would represent just 27% of the river’s 30-year historical average inflow; to understand how much the unseasonable heat has affected that, projections were more than 3.6 million acre-feet of water at the start of the year.
Though it is the bottom left corner of the country that has drawn the most attention for its triple-digit temperatures this week, records are also toppling in southeastern Oregon and southwestern Idaho, where highs are 20 to 25 degrees Fahrenheit above normal. Kurt Miller, the executive director of the Northwest Public Power Association, a nonprofit that represents public utilities in the region, told me his modeling shows that two consecutive 80-degree days in Boise are enough to trigger runoff starting “in earnest” in the Pacific Northwest, where dams meet about 60% of the region’s electricity demand.
The good news is that the high temperatures in Idaho are forecast to be “peaky” rather than prolonged, as they will be in the southwest, meaning the Pacific Northwest isn’t likely to string together the series of hot days necessary to trigger a catastrophic melt-off scenario. Additionally, while snowpack in the Northwest has been dismal this year, hydropower in the region is largely determined by upstream conditions in British Columbia and Montana, which have been closer to seasonal norms and, more importantly, are out of range of this week’s heat event.
There is another obvious downside to the early snowmelt in the West: Fire season will likely start sooner. “This is basically hitting fast-forward,” Abatzoglou, the University of California, Merced professor, told me. “It’s pushing us much faster toward the crispy season.”
Especially given the already historically low snowpack (in the northern Sierras, snow is at just 38% of its normal levels), the heat current wave could move up the start of fire season by weeks as high elevations melt out and soil and vegetation begin to dry. Usually, such conditions aren’t seen before the late spring or early summer.
While major wildfires have mostly spared high-elevation landscapes in recent years, “I expect that will not be the case this year,” Swain, the scientist at UC ANR, said in a video posted earlier this week. He further predicted that “we’ll see an especially severe and early start to fire season in the four corners — Arizona, New Mexico, Utah, and Colorado,” as well as a potential “severe peak” later in the forests of Northern California, Oregon, and the Rockies. (If there’s a saving grace, though, it’s that the lack of precipitation in the West has also curbed the fuel loads by keeping vegetation growth to a minimum.)
Adding to the alarm is the fact that “this year’s snow accumulation pattern most closely resembles 2015, followed by 2005,” as the National Interagency Fire Center wrote at the start of the month. Both were historically bad fire seasons: In 2005, a then-record 8.7 million acres burned, and in 2015, the U.S. broke more than 10 million acres burned for the first time.
Some research also indicates that longer fire seasons can lead to more severe wildfires, which, in addition to posing greater risks to people and property, take a deeper toll on state and federal firefighting resources and personnel. If the season starts sooner, wildland firefighters are more likely to be exhausted by the time the severe fire days of “dirty August” and “Snaptember” finally come around.
Still, any estimates of the direct impact of this week’s heat wave on the upcoming fire season should come with a hefty margin for error. Wildfires are influenced by a number of factors, both climate-related and not, ranging from historic forest management practices to the timing of the “green up” of local fuel loads to, yes, when and where the snow melts off. But an early dry fuel bed also means prescribed burning efforts can begin sooner, the NIFC notes in its March forecast (although that said, the dry fuel bed may also eventually “curtail burning late spring into early summer if timely moisture intrusions do not materialize”).
It could still take months for the immediate-term impacts of this week’s heat wave to come into focus. Excess mortality takes weeks to calculate and sometimes years to pin down precisely; researchers didn’t conclude their formal study of the 159 deaths resulting from the 2021 heat wave in Washington state until 2023.
What we do know is that early-season severe heat is especially dangerous for human health because people aren’t yet acclimatized to it. In fact, between 50% and 70% of outdoor heat-related fatalities occur in the first few days of a heat wave, according to the Occupational Safety and Health Administration. That’s because it can take between four days and two weeks to adapt physiologically to handling heat stress, including the slow process of building up adequate blood plasma to cope with the increased cardiovascular and cooling demands on the body.
And lest we forget, this heat has arrived staggeringly early, in some places breaking the daily temperature record by as much as 11 degrees. It took until August last year for Los Angeles to experience a similarly “strong” heat wave, senior AccuWeather meteorologist Heather Zehr said in a press release.
Drownings increase during heat waves as people seek out water to cool off, but there is a reason to be especially concerned about water this week. That’s because many people will head to rivers, and that water will likely be cold and high due to rapid snowmelt in the mountains, Abatzoglou told me. In addition to its extreme heat warnings this week, the National Weather Service has also been posting PSAs reminding Americans that “cold water can kill.”
There could be impacts on agriculture, too. It is fruit- and nut-blossom season in California’s Central Valley, which produces about three-quarters of those products consumed in the United States. It’s the Valley’s Mediterranean-esque climate, in part, that makes the region so productive; this time of year, daily highs are more typically in the mid-60s, perfect for the trees. Now, however, they’re cresting 90 degrees, threatening the Valley’s $21 billion in annual exports and more than 200,000 agricultural jobs. Further south near San Diego, there are also mounting concerns for the avocado industry, as the plants have particularly heat-sensitive blooms.
Though the heat wave is expected to begin breaking next week, a definitive end to the dry, unseasonably warm troubles in the West is nowhere in sight. April is the crucial transition month in the West, when states can sometimes stabilize after winters with poor snowpack or low precipitation through late-season storms. But “unfortunately, taking a look at some of the longer-range outlooks, it’s more likely than not there will be warmer than normal temperatures continuing across the West into April,” Labe said. “So just all around bad news.”
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
On Thacker Pass, the Bonneville Power Administration, and Azerbaijan’s offshore wind
Current conditions: New York City is bracing for triple-digit heat in some parts of the five boroughs this week • The warm-up along the East Coast could worsen the drought parching the country’s southeastern shores • After Sunday reached 95 degrees Fahrenheit in the war-ravaged Gaza, temperatures in the Palestinian enclave are dropping back into the 80s and 70s all week.
Assuming world peace is something you find aspirational, here’s the good news: By all accounts, President Donald Trump’s two-day summit in Beijing with Chinese President Xi Jinping went well. Here’s the bad news: The energy crisis triggered by the Iran War is entering a grim new phase. Nearly 80 countries have now instituted emergency measures as the world braces for slow but long-predicted reverberations of the most severe oil shock in modern history. With demand for air conditioning and summer vacations poised to begin in the northern hemisphere’s summer, already-strained global supplies of crude oil, gasoline, diesel, and jet fuel will grow scarcer as the United States and Iran mutually blockade the Strait of Hormuz and halt virtually all tanker shipments from each other’s allies. “We are taking that outcome very seriously,” Paul Diggle, the chief economist at fund manager Aberdeen, told the Financial Times, noting that his team was now considering scenarios where Brent crude shoots up to $180 a barrel from $109 a barrel today. “We are living on borrowed time.”
The weekend brought a grave new energy concern over the conflict’s kinetic warfare. On Sunday, the United Arab Emirates condemned a drone strike it referred to as a “treacherous terrorist attack” that caused a fire near Abu Dhabi’s Barakah nuclear station. The UAE’s top English-language newspaper, The National, noted that the government’s official statement did not blame Iran explicitly. The attack came just a day after the International Atomic Energy Agency raised the alarm over drone strikes near nuclear plants after a swarm of more than 160 drones hovered near key stations in Ukraine last week.
We are apparently now entering the megamerger phase of the new electricity supercycle. On Friday, the Financial Times broke news that NextEra Energy is in talks with rival Dominion Energy for a tie-up that would create a more than $400 billion utility behemoth in one of the biggest deals of all time. The merger talks, which The Wall Street Journal confirmed, could be announced as early as this week. The combined company would reach from Dominion’s homebase of Virginia, where the northern half of the state is serving as what the FT called “the heartland of U.S. digital infrastructure serving the AI boom,” down to NextEra’s home-state of Florida, where the subsidiary Florida Power & Light serves roughly 6 million customers. While Dominion dominates data centers in Northern Virginia, NextEra last year partnered with Google to build more power plants and even reopen the Duane Arnold nuclear station in Iowa.

Trump digs lithium. In fact, he’s such a fan of Lithium Americas’ plan to build North America’s largest lithium mine on federal land in Nevada that he renegotiated a Biden-era deal to finance construction of the Thacker Pass project to secure a 5% equity stake in the publicly-traded developer. Yet the White House’s macroeconomic policies are pinching the nation’s lithium champion. During its first-quarter earnings call with investors last week, Lithium Americas cautioned that the Trump administration’s steel tariffs, coupled with inflation from disrupted shipments through the Strait of Hormuz, could add between $80 million and $120 million to construction costs at Thacker Pass. Most of the impact, Mining.com noted, is expected this year. Once mining begins, the project could spur new discussion of a strategic lithium reserve, the case for which Heatmap’s Matthew Zeitlin articulated here.
Sign up to receive Heatmap AM in your inbox every morning:
The Department of Energy has selected Travis Kavulla, an energy industry veteran, as the 17th chief executive and administrator of the Bonneville Power Administration, NewsData reported. Founded under then-President Franklin D. Roosevelt in 1937, the federal agency is a holdover from the New Deal era before utilities had built out electrical networks in rural parts of the U.S. Unlike the Tennessee Valley Authority — which functions as a standalone utility that owns and sells power, though it’s wholly owned by the federal government and its board of directors is appointed by the White House — the BPA, as it’s known, is a power marketing agency that sells electricity from hydroelectric dams owned by the Army Corps of Engineers and the Department of the Interior’s Bureau of Reclamation. Kavulla currently serves as the head of policy for Base Power, the startup building a network of distributed batteries to back up the grid. He previously worked as the regulatory chief at the utility NRG Energy, and as a state utility commissioner in his home state of Montana. NewsData, a trade publication focused on Western energy markets, cautioned that the Energy Department may hold off on announcing the appointment for “the next few days or weeks” as sources warned that “it might be delayed while the department conducts a background check, or to allow the new undersecretary of energy, Kyle Haustveit, to be confirmed.”
Reached Sunday night via LinkedIn message, Kavulla politely declined to comment on whether he was appointed to lead the BPA.
Offshore wind may be spinning in reverse in the U.S. as the Trump administration attempts to, as Heatmap’s Jael Holzman put it, “murder” an industry through death by a thousand cuts. But elsewhere in the world, offshore wind is booming. Just look at Azerbaijan. Despite its vast reserves of natural gas, the nation on the Caspian Sea is looking into building its first offshore turbines. On Friday, offshoreWIND.biz reported that the Azerbaijan Green Energy Company, owned by the Baku-based industrial giant Nobel Energy, had commissioned a Spanish company to design a floating LiDAR-equipped buoy for the country’s first turbines in the Caspian. The debut project, backed by the Azeri government, would start with 200 megawatts of offshore wind and eventually triple in size.
Before the wealthy software entrepreneur Greg Gianforte ran to be governor of Montana, he donated millions of dollars to a Christian-themed museum that claims humans walked alongside dinosaurs and the Earth is just 6,000 years old. After winning the state’s top job, the Republican set about revoking virtually all policies related to climate change, including banning the projected effects of warming from state agencies’ risk forecasts. With drought withering the state, however, Gianforte has turned to perhaps the most ancient policy approach humanities leaders have called upon to fix devastating weather patterns: Pray. On Sunday, Gianforte declared an official day of prayer for rain. “Prayer is the most powerful tool we have,” he wrote in a post on X. “I ask all who are faithful to come to God with thanks and pray.”
With construction deadlines approaching, developers still aren’t sure how to comply with the new rules.
Certainty, certainty, certainty — three things that are of paramount importance for anyone making an investment decision. There’s little of it to be found in the renewable energy business these days.
The main vectors of uncertainty are obvious enough — whipsawing trade policy, protean administrative hostility toward wind, a long-awaited summit with China that appears to have done nothing to resolve the war with Iran. But there’s still one big “known unknown” — rules governing how companies are allowed to interact with “prohibited foreign entities,” which remain unwritten nearly a year after the One Big Beautiful Bill Act slapped them on just about every remaining clean energy tax credit.
The list of countries that qualify as “foreign entities of concern” is short, including Russian, Iran, North Korea, and China. Post-OBBBA, a firm may be treated as a “foreign-influenced entity” if at least 15% of its debt is issued by one of these countries — though in reality, China is the only one that matters. This rule also kicks in when there’s foreign entity authority to appoint executive officers, 25% or greater ownership by a single entity or a combined ownership of at least 40%.
Any company that wants to claim a clean energy tax credit must comply with the FEOC rules. How to calculate those percentages, however, the Trump administration has so far failed to say. This is tricky because clean energy projects seeking tax credits must be placed in service by the end of 2027 or start construction by July 4 of this year, which doesn’t leave them much time left to align themselves with the new rules.
While the Treasury Department published preliminary guidance in February, it largely covered “material assistance,” the system for determining how much of the cost of the project comes from inputs that are linked to those four nations (again, this is really about China). That still leaves the issue of foreign influence and “effective control,” i.e. who is allowed to own or invest in a project and what that means.
This has meant a lot of work for tax lawyers, Heather Cooper, a partner at McDermott Will & Schulte, told me on Friday.
“The FEOC ownership rules are an all or nothing proposition,” she said. “You have to satisfy these rules. It’s not optional. It’s not a matter of you lose some of the credits, but you keep others. There’s no remedy or anything. This is all or nothing.”
That uncertainty has had a chilling effect on the market. In February, Bloomberg reported that Morgan Stanley and JPMorgan had frozen some of their renewables financing work because of uncertainty around these rules, though Cooper told me the market has since thawed somewhat.
“More parties are getting comfortable enough that there are reasonable interpretations of these rules that they can move forward,” she said. “The reality is that, for folks in this industry — not just developers, but investors, tax insurers, and others — their business mandate is they need to be doing these projects.”
Some of the most frequent complaints from advisors and trade groups come around just how deep into a project’s investors you have to look to find undue foreign ownership or investment.
This gets complicated when it comes to the structures involved with clean energy projects that claim tax credits. They often combine developers (who have their own investors), outside investment funds, banks, and large companies that buy the tax credits on the transferability market.
These companies — especially the banks, which fund themselves with debt — “don’t know on any particular date how much of their debt is held by Chinese connected lenders, and therefore they’re not sure how the rules apply, and that’s caused a couple of banks to pull out of the tax equity market,” David Burton, a partner at Norton Rose Fulbright, told me. “It seems pretty crazy that a large international bank that has its debt trading is going to be a specified foreign entity because on some date, a Chinese party decided to take a large position in its debt.”
For those still participating in the market, the lack of guidance on debt and equity provisions has meant that lawyers are having to ascend the ladder of entities involved in a project, from private equity firms who aren’t typically used to disclosing their limited partners to developers, banks, and public companies that buy the tax credits.
“We’re having to go to private equity funds and say, hey, how many of your LPs are Chinese?” David Burton, a partner at Norton Rose Fulbright, told me. This is not information these funds are typically particularly eager to share. If a lawyer “had asked a private equity firm please tell us about your LPs, before One Big Beautiful Bill, they probably would have told us to go jump in the lake,” Burton said.
Still, the deals are still happening, but “the legal fees are more expensive. The underwriting and due diligence time is longer, there are more headaches,” he told me.
Typically these deals involve joint ventures that formed for that specific deal, which can then transfer the tax credits to another entity with more tax liability to offset. The joint venture might be majority owned by a public company, with a large minority position held by a private equity fund, Burton said.
For the public company, Burton said, his team has to ask “Are any of your shareholders large enough that they have to be disclosed to the SEC? Are any of those Chinese?” For the private equity fund, they have to ask where its investors are residents and what countries they’re citizens of. While private equity funds can be “relatively cooperative,” the process is still a “headache.”
“It took time to figure out how to write these certifications and get me comfortable with the certification, my client comfortable with it, the private equity firm comfortable with it, the tax credit buyer comfortable with it,” he told me, referring to the written legal explanation for how companies involved are complying with what their lawyers think the tax rules are.
Players such as the American Council on Renewable Energy hope that guidance will cut down on this certification time by limiting the universe of entities that will have to scrub their rolls of Chinese investors or corporate officers.
“It’d be nice if we knew you only have to apply the test at the entity that’s considered the tax owner of the project,” i.e. just the joint venture that’s formed for a specific project, Cooper told me.
“There’s a pretty reasonable and plain reading of the statute that limits the term ’taxpayer’ to the entity that owns the project when it’s placed in service,” Cooper said.
Many in the industry expect more guidance on the rules by the end of year, though as Burton noted, “this Treasury is hard to predict.”
In the meantime, expect even more work for tax lawyers.
“We’re used to December being super busy,” Burton said. “But it now feels like every month since the One Big Beautiful Bill passed is like December, so we’ve had, like, you know, eight Decembers in a row.”
Deep cuts to the department have left each staffer with a huge amount of money to manage.
The Department of Energy has an enviable problem: It has more money than it can spend.
DOE disbursed just 2% of its total budgetary resources in fiscal year 2025, according to a report released earlier this year from the EFI Foundation, a nonprofit that tracks innovations in energy. That figure is far lower than the 38% of funds it distributed the year prior.
While some of that is due to political whiplash in Washington, there is another, far more mundane cause: There simply aren’t that many people left to oversee the money. Thanks to the Department of Government Efficiency’s efforts, one in five DOE staff members left the agency. On top of that, Energy Secretary Chris Wright shuffled around and combined offices in a Kafkaesque restructuring. Short on workers and clear direction, the department appears unable to churn through its sizable budget.

Though Congress provides budgetary authority, agencies are left to allot spending for the programs under their ambit, and then obligate payments through contracts, grants, and loans. While departments are expected to use the money they’re allocated, federal staff have to work through the gritty details of each individual transaction.
As a result of its reduced headcount, DOE’s employees are each responsible for far more budgetary resources than ever before.
“DOE is facing its largest imbalance in its history,” Alex Kizer, executive vice president of EFI Foundation, told me. In fiscal year 2017, DOE budgeted around $4.7 million per full-time employee. In the fiscal year 2026 budget request, that figure reached $35.7 million per worker — about eight times more.
Part of that increase is the result of the unprecedented injection of funding into DOE from the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act. The pair of laws, which gave DOE access to $97 billion, comprised the United States’ largest investment to combat climate change in the nation’s history.
The epoch of federally backed renewable energy investment proved to be short-lived, however. Once President Trump retook office last year, his administration froze funds and initiated a purge of federal workers that resulted in 3,000 staffers (about one in five) leaving DOE through the Deferred Resignation Program. The administration canceled hundreds of projects, evaporating $23 billion in federal support.
While the One Big Beautiful Bill Act passed last summer depleted some of the IRA’s coffers and sunsetted many tax credits years early, it only rescinded about $1.8 billion from DOE, according to the EFI Foundation. Much of the IRA’s spending had already gone out the door or was left intact.
This leaves DOE in a strange position: Its budget is historically high, but its staffing levels have suffered an unprecedented drop.

Even before the short-lived Elon Musk-run agency took a chainsaw to the federal workforce, DOE struggled to hire enough people to keep up with the pace of funding demanded by the IRA’s funding deadlines. The Loan Programs Office, for example, was criticized for moving too slowly in shelling out its hundreds of billions in loan authority. According to a report from three ex-DOE staffers that Heatmap’s Emily Pontecorvo covered, the IRA’s implementation suffered from a lack of “highly skilled, highly talented staff” to carry out its many programs.
“The last year’s uncertainty and the staff cuts, the project cancellations, those increase an already tightening bottleneck of difficulty with implementation at the department,” Sarah Frances Smith, EFI Foundation’s deputy director, told me.
One former longtime Department of Energy staffer who asked not to be named because they may want to return one day told me that as soon as Trump’s second term started, funding disbursement slowed to a halt. Employees had to get permission from leadership just to pay invoices for projects that had already been granted funding, the ex-DOE worker said.
While the Trump administration quickly moved to hamstring renewable energy resources, staff were kept busy complying with executive orders such as removing any mention of diversity equity and inclusion from government websites and responding to automated “What did you do last week?” emails.
On top of government funding drying up, Kizer told me that the confusion surrounding DOE has had a “cooling effect on the private sector’s appetite to do business with DOE,” though the size of that effect is “hard to quantify.”
Under President Biden, DOE put a lot of effort into building trust with companies doing work critical to its renewable energy priorities. Now, states and companies alike are suing DOE to restore revoked funds. In a recent report, the Government Accountability Office warned, “Private companies, which are often funding more than 50 percent of these projects, may reconsider future partnerships with the federal government.”
Clean energy firms aren’t the only ones upset by DOE’s about-face. Even the Republican-controlled Congress balked at President Trump’s proposed deep cuts to DOE’s budget in its latest round of budget negotiations. Appropriations for fiscal year 2026 will be just slightly lower than the year before — though without additional headcount to manage it, the same difficulties getting money out the door will remain.
The widespread staff exit also appears to have slowed work supporting the administration’s new priorities, namely coal and critical minerals. LPO, which was rebranded the “Office of Energy Dominance Financing,” has announced only a few new loans since President Biden left office. Southern Company, which received the Office’s largest-ever loan, was previously backed by a loan to its subsidiary Georgia Power under the first Trump administration.
Despite Trump’s frequent invocation of the importance of coal, DOE hasn’t accomplished much for the technology besides some funding to keep open a handful of struggling coal plants and a loan to restart a coal gasification plant for fertilizer production that was already in LPO’s pipeline under Biden.
Even if DOE wanted to become an oil and gas-enabling juggernaut, it may not have the labor force it needs to carry out a carbon-heavy energy mandate.
“When you cut as many people as they did, you have to figure out who’s going to do the stuff that those people were doing,” said the ex-DOE staffer. “And now they’re going to move and going, Oh crap, we fired that guy.”