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The story of natural gas taxes and bans this election cycle is far more nuanced than that.

Berkeley, California and Washington State put the transition to all-electric buildings on the ballot last week, and in both cases, it seemed to fail the test. Voters in Berkeley overwhelmingly rejected a proposed tax on natural gas that would raise money for electrification projects. In one fell swoop, voters in Washington State repealed several of their nation-leading policies that encourage electric over gas appliances and barred cities and towns from passing similar policies in the future.
On the face of things, the results appear to show voters retreating from ambitious climate action and rejecting electrification — a concerning signal at a time when federal support for decarbonization is about to evaporate and state and local leadership to cut emissions will become paramount. But the specific circumstances behind each vote suggest that’s not the whole story.
The Berkeley proposal was submitted by a small group of activists who knew it was more ideologically driven than politically feasible, and it proved to be controversial even among diehard climate advocates in the city. The Washington State initiative slid onto the ballot just three months before the election and ultimately passed on a razor thin margin. The two cases offer distinct lessons and takeaways, but to climate advocates, a budding backlash to electrification is not one of them.
The Berkeley proposal, otherwise known as Measure GG, was largely written by one person. Daniel Tahara is a software engineer at Tesla by day, and a climate activist by night with 350 Bay Area, a local chapter of the national climate advocacy group 350.org. For the past few years, he’s been animated by a question that I, too, am frequently asking: How are most people going to afford the steep cost of retrofitting their homes to use electric appliances?
To Tahara, finding an answer became more pressing last year when the Bay Area Air Quality Management District, a regional authority that regulates pollution, approved rules to phase out the sale of gas appliances. Starting in 2027, Berkeley residents will no longer be able to purchase a new gas-fired water heater if their old one fails — they’ll have to go electric. The rule applies to gas-fired furnaces and boilers in 2029. “We've got a lot of old buildings,” Tahara told me. “They would need a lot of electrical work to support new appliances, and people just don't have the money for it.”
His solution was Measure GG, an ordinance that would have imposed a tax of $2.96 per therm of natural gas used by buildings larger than 15,000 square feet. The estimated $26.7 million per year raised by the tax would go into a fund to help everyone else in town pay for electrification retrofits.
Tahara rallied a number of local environmental and community groups around the idea, but he did not have the support of the bigger non-profits and advocacy orgs that work on electrification policy in California, including the Building Decarbonization Coalition, Rewiring America, RMI, the Sierra Club, or the Natural Resources Defense Council.
"Any large blanket tax hike without input from those it would impact, no plans for a managed transition to the new fees, and no analysis on who is most likely to benefit or be burdened is likely to face real challenges with voters,” Alejandra Mejia Cunningham, the senior manager of building decarbonization for the NRDC, told me via email. “It is very important for tax-based policy proposals to be robust and thoroughly socialized."
I also talked to several Berkeley-based electrification supporters who voted no on Measure GG. Tom Graly, who chairs a local electrification working group, told me part of the reason the policy proved so controversial is that it singled out some of the city’s most beloved institutions, such as the Berkeley Bowl supermarket, a local chain, and the Berkeley Repertory Theater. The theater estimated the tax would cost it up to $69,000 per year, while converting off of gas would cost millions. “This well-intentioned ballot measure with its immediate implementation would be very harmful to our struggling organization,” Tom Parrish, the theater’s managing director said in a statement for the “No on GG” campaign.
Tahara based the tax on estimates for what’s called the “social cost of carbon,” or the projected economic damage that every additional ton of carbon dioxide put into the atmosphere will cause. But the number Tahara chose was on the high end — more than double the number the Biden administration uses when it weighs the costs and benefits of new regulations on carbon. If passed, the tax would more than double the cost of using natural gas in large buildings. He said some national groups gave him feedback on the proposal, like phasing in the tax over time and building in more exemptions, which he might consider for a future version. But he and his partners on the measure wanted to preserve their core thesis, which was that climate damages are already happening and are unaccounted for.
“I think part of our responsibility as local activists is to put out new ideas, to push the status quo,” he said. “I don’t think there’s been a lot of that that’s been happening in the last couple years.”
In Tahara’s view, the measure failed because the opposition campaign had a lot more money, and because even though Berkeley is often called the birthplace of the electrify everything movement, there’s still a lot of people in town who are completely unaware of the harm natural gas causes to the climate and to public health. On that, Graly agreed. “There's a huge education gap,” he said. “People just don't think about hot water. They turn on the faucet and the water is hot, and they're happy.”
Initiative 2066 in Washington State was a wide-ranging proposal to both roll back existing policies and preempt future ones. It was so wide-ranging, in fact, that its opponents believe it’s illegal under the state’s “single subject” rule for ballot measures, and they plan to fight it in court.
If the measure stands, it will invalidate the state’s nation-leading residential and commercial energy codes that strongly incentivize builders to forego gas hookups. It will remove a provision in state statute that requires Washington’s energy codes to gradually tighten toward zero-emissions new construction by 2031. It will repeal key parts of a law the state legislature passed earlier this year that require Washington’s biggest utility, Puget Sound Energy, to consider alternatives to replacing aging gas infrastructure or building new gas pipelines. And it will ban cities and towns from passing any local ordinances that “prohibit, penalize, or discourage” the use of gas in buildings.
The initiative was one of four put on the ballot by Let’s Go Washington, a group bankrolled by hedge fund manager and multimillionaire Brian Heywood, and had the Building Industry Association of Washington as its primary sponsor, alongside a number of other pro-gas, pro-business, and realty groups.
There’s no doubt 2066 is a significant setback in the state’s progress toward cutting carbon emissions. But when I asked climate advocates in Washington how they were interpreting the outcome, they pointed to a handful of reasons why they weren’t too concerned about public sentiment around decarbonization.
First, the vote was incredibly close, with just over 51% of voters checking “yes.” Second, another initiative Let’s Go Washington put on the ballot — 2117, which would have repealed the state’s big umbrella climate law that puts a declining cap on emissions — unambiguously failed, with 62% voting “no.” Third, they argue the split reflects confusion about what 2066 would do.
The “yes on 2066” campaign sold it as a measure to “protect energy choice” and “stop the gas ban,” warning that otherwise utility rates would increase and the state would force homeowners to pay tens of thousands of dollars to retrofit their homes. There are kernels of truth to the messaging — the state’s building codes seriously limit developers’ ability to put gas hookups in new construction without outright banning them. The new law affecting Puget Sound Energy is primarily a planning policy that requires the utility to consider alternatives to gas infrastructure, but it doesn’t force anyone to get off gas, and regulators are likely to approve only those alternatives that save ratepayers money.
“I think voters were responding to a lot of misinformation and fear-mongering,” said Leah Missik, the Washington deputy policy director for Climate Solutions, a regional nonprofit that helped spearhead the “no on 2066” campaign. She emphasized that it was put on the ballot in July, giving groups like hers only a few months to drum up their response to it, whereas they knew about 2117 for over a year, and thus had a lot more time to educate voters on what that initiative would do.
The confusion probably also wasn’t helped by the fact that the policies 2066 repealed were incredibly wonky, dealing with building codes and utility planning.
“I think that given all of those headwinds, the fact that about half of Washingtonians still voted against initiative 2066 is a testament to how popular climate action is in the state,” Emily Moore, the director of the climate and energy program at the Sightline Institute, a Seattle-based think tank, told me.
Sightline didn’t campaign for or against the measure, but Moore had some takeaways from the vote. She said environmental groups spent a lot of their energy countering the narrative that there was a gas ban, which may have inadvertently reinforced the idea. One lesson for the future might be to put more emphasis on the benefits of electrification, like the fact that heat pumps provide both heating and cooling and half of the state doesn’t currently have air conditioning. The other anti-climate measure, 2117, may have failed so decisively because Washington’s emission cap policy has raised more then $2 billion in funding for projects that people are already seeing the benefits of, like free transit passes.
“Likely a no vote on that one felt like getting to keep good things,” she told me. “I think we have more to do to show that getting off of gas means getting good things too.”
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We got a much better sense of the Trump administration’s nuclear buildout plans today.
The Energy Department announced its long-awaited loan program that will aim to build a new fleet of nuclear reactors across the country. The department’s in-house bank will provide low-interest loans of up to $17.5 billion to help utilities and power developers buy up to 10 Westinghouse AP1000s, the third-generation nuclear reactor that is that company’s flagship product.
I can’t say this program was entirely a surprise: If you read Heatmap, you’ll remember we reported on the existence of this program — and the discussions between the government, utilities, power developers, and Westinghouse — back in February. Gregory Beard, who leads the Energy Department’s in-house bank, also teased the program at a Houston conference in April.
The program looks roughly as anticipated: It will aim to construct up to 10 new reactors, with two AP1000 Westinghouse reactors across five sites. That could add up to 11 gigawatts of nearly around the clock zero-carbon electricity to the power grid. What’s new is that Westinghouse and the utility will jointly own the power plants.
According to The Wall Street Journal, utilities and Westinghouse will each own part of the plants once they’re built. Five loans will become available; the department is already in talks with seven utilities.
At the high level, it’s a cool program — or at least I think so. Nuclear support has become surprisingly bipartisan, at least at the elite level, in recent years. In New York, Governor Kathy Hochul is trying to develop new nuclear plants. As we’ve noted before, the countries with some of the cleanest power grids in the world, such as France and Sweden, achieved their low carbon emissions in part by undertaking large, state-led nuclear energy buildouts. France, in particular, harmonized its nuclear power plants to a single reactor design and then built them to spec across the landscape. China is engaged in a similar buildout now with a variant of the AP1000. By getting behind the AP1000 in the United States, the Trump administration is following a global best practice.
The idea of a mass buildout makes sense for other reasons, too. Recent nuclear projects in the United States have often faced delays because construction and manufacturing timelines don’t line up. AP1000s are manufactured partly off-site in Westinghouse facilities and then shipped in; when a part arrives late, an expensive construction crew has to sit idle while they wait for it to arrive. (These timing misalignments drove part of the Vogtle plant’s runaway costs in Georgia.) By placing what is in essence a bulk order for AP1000 parts, the new program aims to bring down the cost of production and even allows project sites to swap identical parts as they come available — if one site isn’t ready to receive a pressure vessel, for instance, it can go somewhere else.
I hesitate to praise the project's climate bonafides at the risk of discouraging the Trump administration, but it is worth noting that if this project were to succeed, it would be one of the largest state-assisted build-outs of zero-carbon electricity in recent American history. But it would still take some time to arrive: These reactors aren’t forecast to come online til 2035.
Let me note one more irony. For a long time, the country’s policymakers and nuclear industry (to the extent the latter exists) have dreamt of small modular reactors: petite fission plants that can be manufactured in a factory and would produce a few hundred megawatts. The AP1000, in both its American and Chinese iterations, is a very large reactor — but it has become, in a sense, modular and manufacturable.
Cameco, which owns about half of Westinghouse, saw its stock rise 1.8% in the day’s trading. Brookfield Renewable Partners, which owns the other half, was flat. It was otherwise a choppy day in the markets, with the S&P 500 falling 1.4% and some tech and AI-exposed companies continuing their slide.
There will be much more to say about this program, and we look forward to covering it at Heatmap.
Hyperscalers might be paying billions to avoid blame for rising electricity prices.
Here is a mystery for you: On Wednesday, the House Energy and Commerce Committee will take up the Ratepayer Protection Act, a bipartisan bill sponsored by Colorado Republican Gabe Evans and Florida Democrat Kathy Castor that seeks to enshrine Trump’s similarly named pledge into law.
Among the bill’s supporters is Kentucky Representative Brett Guthrie, a Republican and the chair of the committee. Guthrie is no opponent of artificial intelligence, saying in a statement praising the bill that “Winning the race to AI dominance is essential to securing America’s future global leadership, and that means expeditiously building the power infrastructure needed to support new technologies, while doing so in a responsible way.” Guthrie did not respond to a request for comment.
Microsoft, one of seven large technology companies that agreed to cover any additional grid infrastructure costs stemming from their data centers under Trump’s original Ratepayer Protection Pledge, supports the bill, describing it as an “important step to help ensure American families are protected from rising electricity costs.” Google, another signatory, generally backs the idea of specialized large load tariffs that allocate network costs back to the hyperscalers.
But … why? After all, these companies are voluntarily putting themselves on the hook for what could be billions of dollars in costs that would typically be socialized to all the customers on the grid.
The Data Center Coalition, a trade group including several hyperscalers, has been more circumspect about the bill. Cy McNeill, the group’s senior director of federal affairs, told me in a statement that the group “is reviewing the details of the Ratepayer Protection Act with our members and looks forward to engaging with policymakers on this important topic.”
Evans, Castor, Guthrie, and and the rest appear to be acting not out of hostility towards the AI industry, but rather from a desire to protect it from public backlash fed by rising electricity prices. Earlier this month, Guthrie co-signed a letter to FBI Director Kash Patel, among others, raising concerns that China had “engaged in a coordinated effort to slow U.S. growth in AI development and the building of infrastructure supporting AI data centers” by fomenting domestic opposition — hardly the interpretation of someone working against the industry.
The explanation, perhaps, lies in the answers to two big questions about the Ratepayer Protection Act:
1. Are data centers responsible for higher electricity prices now, or will they be in the future?
2. And would the approach taken in the law actually work to protect ratepayers?
As to the first question, analysts have come up with a nuanced answer. The electricity cost increases we’ve seen in the last five or so years have been largely driven by expenses associated with the distribution grid, including the poles and wires themselves. In some states, like California, the costs come back to wildfires; in others, like Maine, to storm remediation. Looking backwards to 2019, researchers have not been able to find a regular relationship between load growth and price hikes.
In fact, several states “absorbed large industrial and data center load additions while reducing inflation-adjusted retail prices,” according to researchers at Columbia University’s Center on Global Energy Policy. By contrast, some states with little load growth from industry or data centers, such as Maine or California, have seen prices rise substantially.
Many analysts expect electricity prices to continue rising nationally, and data centers could be a driver going forward as demand hits a grid whose capacity to generate and transmit electricity is increasingly strained. This is likely already happening in the country’s largest electricity market, PJM Interconnection, where the system’s independent market monitor has claimed that current and forecasted data center demand has cost customers over $23 billion from recent capacity auctions.
To get prices to actually fall — or at least grow more slowly —it would require that “low-cost supply is available, existing infrastructure is more fully utilized, and cost allocation ensures that new demand contributes to system efficiency,” the Columbia researchers write. Under business as usual however, prices will likely continue to rise.
On the second question, there is much more cynicism.
Critics of the original Ratepayer Protection Pledge, including Harvard Law School’s Ari Peskoe, pointed out that the actual parties to ratemaking — utilities and state regulators — were not involved in the pledge at all. Already, there are accusations that projects developed by pledge signatories could lead to higher prices. Meta's sprawling planned data center project in Louisiana is responsible for the utility’s plans to buy a Texas natural gas-fired power plant, according to documents filed by regulators reviewed by the Times-Picayune. The $1.8 billion deal could lead to $8 a month in additional costs for typical Louisiana ratepayers.
The Ratepayer Protection Act would go a bit further than the pledge, amending the Public Utility Regulatory Policies Act to “establish a Federal standard relating to the recovery of the full, incremental costs of upgrades that serve large-load customers.” Peskoe, however, described this to me in an email as “largely symbolic” and noted that “Congress may not force state regulators to do anything” under current Supreme Court jurisprudence. “This section of PURPA is basically Congress asking state regulators to please take a look at the ratemaking standard.”
That being said, Peskoe noted that “many states and non-regulated utilities do tend to consider PURPA ratemaking standards,” but that there’s “no enforcement mechanism,” depriving the law of any teeth. “States can reject the ratemaking standards or adopt them in a way that deviates from what Congress may have intended.”
Still, it is likely in the political interest of state regulators to come up with something on large load tariffs, the Cato Institute’s Travis Fisher told me. He recommended that the National Association of Regulatory Utility Commissioners “spearhead an initiative to get every state regulator to sign a ratepayer protection pledge,” if only to insulate themselves from political backlash and maintain their power over retail ratemaking.
But even if states do adopt the cost allocation principle, determining exactly which infrastructure is being installed due to a data center and what serves all users can be tricky.
“Any real-world example of this is going to be quite complicated, and the devil’s always in the details,” Ben Schifman, a senior technology fellow at the Institute for Progress and a former attorney at the Department of the Interior and the Department of Justice, told me. While it might be possible to conclude that “a given substation is simply only needed for that data center,” he said, “as soon as you start zooming out into the larger, big-ticket investments, it’s quite complicated to attribute the cost to one user or one group of users.”
In summary, the Ratepayer Protection Act will ask state regulators to consider an approach to data center cost allocation that may not capture all of their costs and will likely do little to arrest the fundamental drivers of higher electricity costs. Viewed through this lens, the logic of the coalition supporting both the original Ratepayer Protection Pledge and the beefed-up Ratepayer Protection Act comes into focus.
Electricity prices are likely to continue to rise, and data center construction has powerful interests behind it. The public’s attitude towards data centers is rapidly souring, and no matter how many nuanced PDFs are published on the topic, people continue to blame data centers for higher electricity costs.
And if prices continue to rise, the big data center developers may be able to point to the Ratepayer Protection Act and say “well, it wasn’t me.”
On simplified oil and gas leases, lawsuits over plastic and coal, and a new climate research database
Current conditions: The U.K.’s Met Office issued its second-ever Red Extreme Heat Warning for Wednesday and Thursday • A wildfire near Eureka, Utah forced the town’s evacuation • Flash flood warnings are in effect today for Southern Massachusetts.
Lucid Motors is downsizing, again. The electric vehicle maker is laying off 18% of its staff just a few months after a 12% reduction in force in February, according to Electrek. The company also eliminated a second production shift at its factory in Casa Grande, Arizona. EV sales plummeted in the U.S. after the federal EV tax credit expired in September. While many automakers are canceling new electric vehicle lines in the U.S., Lucid hasn’t axed any plans yet, and will be releasing its first lower-cost EV, the Lucid Cosmos SUV, later this year with a price tag under $50,000. It’s also preparing to launch a robotaxi service later this year in partnership with Uber and the autonomous driving technology company Nuro. According to Lucid’s new CEO, Silvio Napoli, the staff cuts will help “simplify the company, sharpen execution, and position Lucid to become more competitive over time.”

Trump’s environmental deregulation crusade continues. The Interior Department proposed several changes to the rules governing oil and gas leasing on federal lands Monday that would limit public input and cut costs for companies. Under existing rules, which were updated during the Biden administration, companies must maintain a minimum bond of $500,000 for each state where they hold leases to cover the cost of capping oil and gas wells when they are done drilling. Trump’s proposal would reduce the requirement to $25,000, shifting the financial risk of remediation to state taxpayers. The new rules would also shorten public participation periods from 90 days to 10, and get rid of a requirement that companies include plans to minimize methane emissions when they apply for drilling permits.
Red states are going after California, this time for its nation-leading plastic regulations. In 2022, the Golden State passed a law setting plastic waste reduction targets and requiring companies to cover the cost of recycling of their own products. The state aims to cut single-use plastic packaging on products by 25% by 2032. Now, 17 attorneys general from red states have teamed up with the National Association of Wholesaler-Distributors, a trade group, to sue California, arguing that the rules represent an “unprecedented overreach” that will increase the cost of goods throughout the country.
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In the first case of its kind, 10 Australians are suing the government for violating their human rights by failing to limit fossil fuel production. The claimants, each of whom has been personally affected by climate change-fueled extreme weather, brought the case to the United Nations’ Human Rights Committee on Monday. Some of them have lost their homes to wildfires and floods, while others have experienced health impacts from heat waves. The case follows a 2025 ruling by the International Court of Justice that all governments have an obligation to protect people from climate change, citing support for fossil fuel production and consumption as a potential violation of this obligation. While that ruling didn’t have any enforcement power, it teed up the potential for country-level claims like this one in Australia. The country is the second largest exporter of coal in the world and the third largest exporter of liquified natural gas.
The rumors were true. The Trump administration has appointed Travis Kavulla, a former utility regulator and power company executive, to lead the Bonneville Power Administration, a federal agency that sells electricity from the government’s hydroelectric dams in the Pacific Northwest. Kavulla arrives as the agency prepares for a controversial exit from California’s real-time electricity trading market to join a new day-ahead market overseen by the Southwest Power Pool, a regional transmission organization. Environmental groups are urging Kavulla reconsider the decision, arguing that it risks raising energy costs for Northwest ratepayers.
The climate change research and news site Carbon Brief debuted Project Cosmos on Monday, the world’s largest database of research on the warming planet. It includes more than 1.8 million publications and “captures the vast body of human knowledge about climate change that has accumulated over more than a century of academic study.” The architects created a stunning “star” map that visualizes the collection by clustering of fields of study, such as medicine, chemistry, or agriculture. They also identified the 500 most-cited studies and scientists, with French carbon cycle modeler Philippe Ciais earning the top spot.