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In a word: chaos.

A moment of profound uncertainty for many of America’s environmental laws has just become even more uncertain-er. This week, as President-elect Donald Trump considers how to revise or repeal the country’s bedrock climate laws, one of the country’s oldest environmental laws has been thrown into jeopardy.
A three-judge panel on the D.C. Circuit Court of Appeals ruled earlier this week that key rules governing the National Environmental Policy Act, which requires the federal government to study the environmental impact of its actions, do not carry the force of law. The ruling might — might — lay the groundwork for a massive revolution in the country’s environmental permitting regime. But for the time being, they guarantee a lot of chaos.
Whenever the federal government wants to build a new piece of infrastructure — and to some degree, whenever it wants to do anything significant — it has to go through NEPA. That sounds great in theory, but NEPA studies — which were originally meant to be just a few pages long — have now swelled in length, running into the thousands of pages and taking years to complete. They have become the subject of criticism from conservatives and some liberals.
That’s because NEPA doesn’t actually require the government to take the most environmentally friendly action. It only mandates that the government study the alternatives and arrive at a decision. Many critics, including progressives, now argue that NEPA has become a great bulwark of the status quo — a way for wealthy NIMBYs to slow down and block virtually any project they don’t like, including the large-scale solar, wind, and transmission projects necessary for the energy transition.
Other progressives argue that NEPA still serves a purpose — that it’s the only way environmental groups can provide a check on factory farms, new federal construction projects, or other big pieces of infrastructure. They say Congress should reform NEPA by affirmatively expanding parts of the permitting regime, adding new requirements to the process. The NEPA process is so time-consuming today not because it has become unwieldy, they say, but because the federal government does not employ enough civil servants to conduct the required studies on time. (NEPA’s critics reply to this, in essence: Sure, but why does NEPA require all those studies in the first place?)
At the heart of the case is a small federal agency called the Council on Environmental Quality. Since its creation in 1970, the Council on Environmental Quality has issued guidelines about how federal agencies should comply with NEPA. These rules have been treated as legally binding — that is, quasi-law on the same tier as federal regulation — since at least 1977.
In the ensuing decades, presidents from both parties have acted under the impression that the Council on Environmental Quality’s NEPA rules are binding. That’s why the first Trump administration went through the hassle of rewriting the council’s rules, subjecting them to the same notice-and-comment process other federal regulations must go through before they can be changed. The Biden administration later replaced the Trump administration’s rules with its own version.
But that actually isn’t the case, the judges ruled. The Council on Environmental Quality was never allowed to issue binding regulations about NEPA in the first place, they decided.
The Council on Environmental Quality can issue guidelines about how agencies should follow NEPA, the judges said. But these will have the same legal authority as executive orders, which can guide agency decisionmaking but provide no outside legal recourse. Executive orders are sort of like internal corporate policies for the government: They’re supposed to be followed by employees, but nobody can appeal to a court that a company got them wrong. What the council cannot do, the court said, is issue rules, quasi-laws that outside groups can appeal to and claim aren’t being obeyed in court.
If upheld, the ruling would throw virtually the entire body of law around NEPA into question — hundreds of cases, thousands of pages of rules, and hundreds of thousands of analyses all premised on the idea that the Center on Environmental Quality is the final NEPA arbiter. It could also vastly weaken NEPA, allowing the government to build projects quickly while giving Americans and nonprofit groups little recourse to stop them.
“It’s a very big deal,” James Coleman, an energy law professor at the University of Minnesota, told me. “NEPA by itself is a very limited piece of text. When it was adopted, no one imagined that it would lead to this comprehensive permitting system where it would take five years to get a permit.”
Over time, court cases and White House regulations have turned NEPA into the juggernaut that it is today. But now that’s exactly what is up in the air — potentially. “If a judge thinks that the decades of cases we’ve had are misconceived, then they don’t have to follow it any more,” Coleman said.
What’s odd about the case is that neither side intended to get this ruling in the first place. Neither the Federal Aviation Administration nor the Marin Audubon Society, a San Francisco-area birding group, set out to strike down the entire body of NEPA regulations. The FAA had relied on the Council on Environmental Quality’s rules when it approved a plan for tourism flights over national parks, saying that the regulations didn’t require it to conduct a NEPA study. The Marin Audubon Society argued that the air tours didn’t fall under an exemption created by the rules.
Two Republican-appointed judges on the panel then essentially took the case into their own hands, using the dispute as an opportunity to throw modern NEPA procedure into question. In fact, they said, the Council on Environmental Quality never had the authority to issue rules in the first place — so the claimed exemption didn’t matter. (Judge Sri Srinivasan, who dissented from part of the ruling, criticized the judges for opening such big legal questions when they didn’t need to do so.)
The outcome doesn’t mean that the federal government will immediately move faster to approve infrastructure projects — in some cases, it might move slower. As part of its rules, the Council on Environmental Quality has approved a list of “categorical exclusions,” federal actions that do not require a NEPA review. These can include activities like holding a small meeting or taking out a federal farm loan. The judges have now rejected the council’s ability to create categorical exclusions altogether, meaning that many more federal actions may — at least at first — be subject to NEPA oversight. (Congress has also told agencies to create some categorical exclusions — including for oil and gas drilling — and those are not affected by the case.)
For that reason, some environmental lawyers are doubtful that the argument will change NEPA in the way its opponents hope. “What the ruling does is deeply complicate things for both sides,” Sam Sankhar, the senior vice president at Earthjustice, an environmental legal group, told me. “The NEPA regulations are a body of law that has developed over years to guide the way that people do the NEPA process. The absence of those regulations does not mean the absence of NEPA — it means the absence of any guidelines about how to implement NEPA in the future.”
If the NEPA regulations get tossed out, he said, then it will “really be up to each individual judge to wing it” when interpreting the law, he added.
Nicholas Bagley, a University of Michigan law professor who has written critically about NEPA and other liberal laws that focus on procedure, tends to agree with that view. “When you go to court, agencies and challengers both would look at these regulations as a sword or a shield,” he said. Challengers used the White House rules as a weapon, asserting that the government needed to look at some question but failed to do so. But the federal government used those same rules “as a shield,” he said, showing that it faithfully followed the rules, and therefore that judges didn’t need to get involved.
If the rules are gone, then each side has lost a tool — and judges will have much more power. That means federal agencies, which are hesitant to run afoul of the courts, may now become even more timid in their decision-making, Bagley said. What’s more, the White House’s regulations would still act as executive orders, binding agency action. “They just won’t be enforceable in court,” he said. (The Trump administration could also respond by chucking out the White House regulations altogether, he said.)
It’s unclear what happens next. If the FAA appeals, the D.C. Circuit could choose to hear the case again en banc, meaning the full panel of judges — a majority of whom were appointed by Democrats — would consider the questions. But eventually a higher court may weigh in. “I would not be surprised at all to find this eventually find its way to the Supreme Court,” Coleman told me. In the past, the Supreme Court has ruled that the Council on Environmental Quality’s regulations carry the force of law. But the new, arch-conservative court — and the incoming Trump administration — might push for a different approach.
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Many nonprofits representing the environmental and climate movement are split.
This is Heatmap Daily, an evening digest written by our executive editor.
It’s now been just over a week since a gang of four bipartisan senators released the Bipartisan American Affordability and Jobs Act, or BAAJA. The permitting reform proposal would make too many changes to federal law to summarize cleanly here — read our explainer for that — but suffice it to say it creates a messy group of winners and losers. Utilities, data centers, and the Trump administration would lose; electricity ratepayers, clean energy companies, long-distance transmission lines, and natural gas pipeline builders win. (As would geothermal startups, virtual power plant providers, and a few other climate tech subsectors that my colleague Katie Brigham recently detailed.)
In the ensuing week since its release, we’ve gotten a better sense of the battle lines over the bill. The hardhat unions largely support the proposal (although the International Brotherhood of Electrical Workers, which is often aligned with utility executives, has stayed notably silent on it.) Clean energy trade groups, such as the American Clean Power Association, back it, too, as do fossil fuel lobbying groups, such as the American Petroleum Institute.
Groups representing the environmental and climate movement are more split, and some of the most influential nonprofits have yet to render a verdict. Earlier today, the Sierra Club published its first take on the proposal, which it described as a “hard look” at the bill. The Natural Resources Defense Council asked its own “hard questions” last Friday. Neither document rejects the proposal outright, although both are critical, and both suggest that future statements are coming.
To some degree, the statements say what you might expect: The groups like all the parts of the compromise that Democrats fought for (such as those that will encourage transmission) and dislike what Republicans wanted (such as those that will ease some pipeline permitting). That is what a compromise means — and for congressional procedure reasons too tedious to explain here, permitting reform will likely always need to be passed as a bipartisan compromise, because it will always need to overcome a 60-vote Senate filibuster.
The Sierra Club’s assessment divides the bill into “green flags,” which will make “long-overdue changes to protect consumers and level the playing field for proposed transmission,” such as by making it easier to plan long-distance power lines, protect ratepayers from utility and data center freeloading, and clarify who in the government can approve power lines. It also names four “red flags,” including the “hollowing out” of court authority over some permits, the removal of a Clean Water Act provision that lets governors block pipelines and power lines, and the option to delegate partial Endangered Species Act enforcement to state governments.
This is a helpful scheme, and I hope the Sierra Club continues using it. But I think it would be a mistake to analyze the bill solely through this metric, because it implicitly assumes we are starting from a neutral baseline — or that every additional “unit” of policy support, so to speak, helps an insurgent industry as much as it might aid an incumbent industry. To be clear: Although I’ve endorsed the idea of permitting reform in the past, I’ve been careful not to endorse or reject this particular permitting bill yet; I hope to write a more comprehensive take on this legislation — and whether I think it’s a good idea — before senators ultimately vote on it.
So for now, let me say that I think everyone should keep in mind that the baseline around U.S. energy permitting is, in fact, not neutral today. By this, I do not merely mean that natural gas pipelines already have a one-stop shop for federal permits, but transmission developers have to go hat in hand to every state government; nor that fracking is already carved out from some federal environmental review laws, but enhanced geothermal technology isn’t.
The mismatch goes deeper than that. Many of the discussions of the bill that I’ve seen seem to fear that the United States might witness some enormous and unprecedented fossil fuel buildout were the bill to pass. But make no mistake: We are already witnessing such a buildout. The United States is slated to add more than 60 gigawatts of new natural gas generation capacity by 2030 under its existing laws.
The existing system of laws, regulations, and procedures is failing to avert an enormous fossil fuel buildout. The existing system has proven itself completely inadequate to manage an era of electricity demand growth and the data center boom without surging fossil demand and sky-rocketing electricity prices. The existing system of laws is pushing hyperscalers and developers to burn natural gas on site, often through rudimentary jet engines.
And the existing system of laws has shown that fossil fuel consumers will go to great lengths to move and obtain fossil fuels, even when dedicated transport options like pipelines are not available. I’ve heard fears that the permitting bill will make it easier to build natural gas pipelines. But pipelines, to a dedicated artificial intelligence customer, are no constraint: Oracle is now delivering natural gas to some of its data centers by truck when pipeline capacity isn’t available.
There may be reasons for green groups to reject this deal. (And there may be reasons for Democratic lawmakers to support it anyway, even if environmental groups oppose it.) But the perfection of our current environmental and energy legal regime is not one of them. Even if your sole goal were to reduce the carbon emissions produced by the American energy system — even if you set aside the problems with cost, conventional pollution, or monopoly control — the current system sucks.
Advanced nuclear will take a decade or more to hit commercial scale. Meanwhile, the hyperscalers need power now. Enter the uprate.
When America’s tech titans started plowing money into nuclear technology to power data centers in 2024, companies such as Google and Amazon opted to invest first in next-generation reactor startups. But electricity demand is soaring today, and those projects are still years away — at least — from generating power at reasonable commercial rates.
So the industry is hedging by betting on existing nuclear plants to pump out more electricity in the near term. Uprates — renovations that allow nuclear operators to produce more power from existing reactors — are all the rage this year.
In February, the Department of Energy issued its largest-ever loan to Southern Company to fund up to 6 gigawatts of uprates across the utility’s nuclear fleet. Last week, Amazon signed a deal with Constellation Energy, the nation’s largest operator of nuclear reactors, to uprate the Calvert Cliffs plant in Maryland to generate another 190 megawatts on top of its current 1.8-gigawatt output. Soon after, the Energy Department offered nuclear operator Vistra a $4 billion loan to uprate plants in Ohio and Pennsylvania.
Then on Tuesday, Google inked its own deal with Constellation aimed at wringing out 890 megawatts of new power from 11 reactors across PJM Interconnection, the nation’s second-biggest and arguably most overworked grid system.
“Everyone loves nuclear, but it takes a really long time to build,” Raiford Smith, Google’s head of power and energy for the cloud, told me yesterday. “The fastest way to get it is via uprates. It’s real megawatts, but the quicker, shorter-term approach.”
Building new reactors, he said, “is the intermediate term plan, and we see fusion as the longer term bet.” Given that “new data centers are coming on at a gigawatt a clip, that means even with all the uprates, there’s still more to come,” he added.
The investments into existing nuclear stations deliver a win for Constellation, whose chief executive, Joe Dominguez, has been among the more vocal C-suite skeptics of what my colleague Matthew Zeitlin described as utility executives’ “load growth mania” over the past two years. But the deals say as much about the shifting lines in the debate over how to expand the nuclear power fleet in this country — what size reactors are better, how to finance projects — as the disagreement over how much new generation is needed to supply the artificial intelligence boom.
The deal “is a win-win,” Emmet Penney, the director of energy and infrastructure at the think tank Foundation for American Innovation, told me. “Constellation and Google are revealing just how essential our nuclear fleet is to maintaining our energy dominance.”
America’s last attempt at a nuclear buildout ended in a series of financial boondoggles. The problems traced back to numerous factors: Decades without any nuclear construction atrophied the workforce. Electricity market reforms aimed at breaking up monopoly utilities left the industry with few players equipped with large enough balance sheets to take on megaprojects that would take years to build and billions of dollars of upfront capital. Increased competition from cheap natural gas.
The only two new reactors that made it over the finish line, Southern’s pair of Westinghouse AP1000s at the Alvin W. Vogtle Generating Station in eastern Georgia, came in billions of dollars over budget, in part because the developers erred in choosing a Nuclear Regulatory Commission licensing pathway that required long stops and costly delays every time the builders tweaked the design. Since those were the first AP1000s constructed in the U.S., there were plenty of last-minute design kinks to iron out.
In the meantime, the industry rallied behind the idea of small modular reactors. By making individual reactors roughly a third or less powerful than large-scale units such as the AP1000, the thinking went, developers would need to buy more, helping the technology slide down the cost curve through repeated construction and assembly-line manufacturing of components.
While Google and Amazon both backed fourth-generation startups whose designs use coolants other than water, such as liquid sodium or helium gas, the only such reactor operating in the world is in China, and America’s track record of running similar plants is poor. As such, government-owned utilities such as Canada’s Ontario Power Generation and America’s Tennessee Valley Authority have thrown their weight behind third-generation SMRs that essentially just shrink down existing water-cooled technology. The first of GE Vernova Hitachi Nuclear Energy’s BWRX-300s, a 300-megawatt design based on the boiling water reactors that make up about a third of the U.S. fleet, is now underway at OPG’s Darlington plant. In the U.S., meanwhile, the NRC just issued a construction license for the TVA’s first BRWX-300.
But the completion of the second AP1000 at Plant Vogtle demonstrated an uncomfortable reality proposed by researchers at the Massachusetts Institute of Technology: That the next, cheapest reactor to build in the U.S. would be another of Westinghouse’s flagship design. Vogtle Unit 4 came online in 2024 roughly 30% cheaper and faster than its slightly older twin, Vogtle Unit 3.
If that reduction seemed to justify the approach SMR companies were pursuing, a report by an economist and former antinuclear researcher raises new questions. The study by Charles Komanoff, which I covered here last month, suggests that the number of reactors required to achieve major cost reduction through “economies of duplication” pales in comparison to the price drop achieved through “economies of scale.” In other words, the nuclear industry’s time-tested approach to making reactors more economical — making them bigger — is still the best bet.
The Trump administration certainly agrees. The Energy Department laid plans for at least 10 new AP1000s last year, and put up another nearly $20 billion loan package for utilities that form joint ventures with Westinghouse to build one of the 1,100-megawatt reactors. South Korea is currently working out the fine print on a deal to help finance and build as many as six AP1000s and two APR1400s, the Korean rival to the Westinghouse reactor.
Whether any American utilities step up to help build any of those AP1000s remains an open question.
“There’s no way any utilities could consider building a large AP1000 because doing so could bankrupt the whole operation, and they don’t have enough confidence,” Chris Gadomski, the lead nuclear analyst at the consultancy BloombergNEF, told me.
The workforce that constructed the two AP1000s at Vogtle, he said, are now out building data centers. Unlike the Chinese, whose state-owned nuclear companies reverse engineered the AP1000 and made it relatively cheap to build by constructing as many as half a dozen at a time at one location, “we don’t have the wherewithal or sites in this country to build six reactors at once,” Gadomski said. “You’re lucky to build two at one site in this country.”
So fusion and next-generation fission remain years away. Current-generation SMRs come with big questions. And the leading large-scale design, the AP1000, is proving a hard sell to utilities. That leaves two options: Restarting decommissioned plants and uprating current reactors. The Energy Department has pumped billions in loans into projects to restart at least three permanently closed reactors: Holtec’s Palisades plant in Michigan, NextEra’s Duane Arnold facility in Iowa, and Constellation’s Crane Clean Energy Center, née Three Mile Island, in Pennsylvania. The consensus among industry experts is that those are the only three that remain intact enough to start back up; every other shuttered plant is at too advanced a stage of demolition.
That leaves uprates.
There are limits to how much power can be drawn from existing plants, said Jeff Jenkins, the founder and managing partner of Bernhard Capital Partners, an investment firm whose portfolio includes Allied Power, a contractor that has worked with Constellation on past uprates. “There’s still a few gigawatts out there,” he said. “And a gigawatt is a lot.”
But ultimately, the U.S. nuclear buildout needs options.
“It’s very much a hedge,” Gadomski said. “They’re spreading their bets. That’s a strength of Google’s strategy. They’re willing to place bets on advanced reactors, fusion, and still try to double down on the capacity of existing plants.”
On methane rules, British wind, and the Israeli electricity market
Current conditions: Singapore’s air is the worst in the world as wildfire smoke from Indonesia chokes the city state and neighboring Malaysia • Following a summer-like heat wave, temperatures in the American West are set to drop by as much as 50 degrees Fahrenheit as a cold snap moves in • In the Gulf of Mexico, Tropical Storm Isaias officially strengthened into the first Atlantic hurricane of the season this morning.
With its offshore oil fields booming in Guyana and its opportunities opening in Venezuela, Exxon Mobil is eyeing the next location for the Americas’ oil and gas: Trinidad and Tobago. In an interview with the Financial Times this week, the company’s exploration chief said the island nation’s existing oil and gas industry could expand to tap the same basin east of Venezuela that has transformed Guyana from one of the hemisphere’s poorest nations to one of its richest in terms of per capita gross domestic product. “A lot of people ask, ‘well, where’s the next Guyana?’” John Ardill, Exxon Mobil’s vice-president and head of global exploration, told the newspaper. “In Trinidad, we moved in as a play extension to Guyana.” The agreement between Exxon Mobil and the Trinidadian government took “about half as long as it usually takes on a good day,” delivering a pact in “record time.”
America’s oil majors are also looking outside the hemisphere. As you may recall from August, I told you that Exxon Mobil was also considering a big investment in Africa, with Mozambique drawing particular attention. Brazil’s state-owned Petrobras, meanwhile, is expanding its own grasp on the Americas’ oil boom. On Wednesday, Upstream reported, the company bid $590 million for control of an ultra-deepwater concession.
The European Union is pausing implementation of its new rules requiring oil and gas exporters to more scrupulously track data on methane emissions. The U.S., on the other hand, is planning a straight-up rollback. At an oil industry conference in Santa Fe on Wednesday, Environmental Protection Agency Administrator Lee Zeldin teased out plans to gut core parts of the methane regulations finalized in 2024. “This proposal takes on many of the problems American producers and operators have raised with us,” Zeldin said, according to Argus Media. “That includes the burden on marginal wells and oil and gas operators in general, the super emitter program, associated gas and control device requirements.”
Record wind power generation may have slashed how much natural gas Britain needed to burn last month for electricity, but it “wasn’t enough to shield the country from surging prices triggered by the war in Iran,” Bloomberg reported. Wind turbines pumped out 6.6 terawatt-hours of electricity in September, a record for the month and 4% more than a year earlier. As a result, gas-fired generation plunged to its lowest level on record for that month. But day-ahead power rates still doubled from a year earlier.
The world’s capacity of floating offshore wind, the subset of the sector that could vastly expand the areas of shoreline dotted with turbines, has reached 382 megawatts, a 38% surge over the past 12 months, according to a Renewables Now writeup of the latest report from the trade group RenewableUK. Meanwhile, Poland has now constructed all 76 of the standard turbines built into the seabed of the Baltic Sea for its first offshore wind farm. One-third of the turbines are now generating power, according to offshoreWIND.biz.
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South Korea plans to speed up its shift away from fossil fuels with a new goal of 100 gigawatts of low-carbon energy additions by 2030 and roughly $747 billion in government-led investment over the next decade. The plan, part of the Korean Green Transformation program, “seeks to make Korea one of the world’s top three green manufacturing powers by developing industries such as hydrogen-reduction steelmaking, next-generation solar cells, and all-solid-state batteries,” according to The Korea Times, an English-language daily. New nuclear reactors are also part of the strategy.
The move comes as Seoul advances construction of as many as eight nuclear reactors in the U.S., including six of America’s Westinghouse AP1000 and two of its own APR1400s, as I told you last week.
The utility megamerger of the century so far is “not in the best interest of Virginians.” That’s the judgment the state’s lieutenant governor, Ghazala Hasmi, rendered this week following a five-city public listening tour. The statement came ahead of the State Corporation Commission’s first local hearing on the deal, and marks what Utility Dive called “the most formal expression of opposition from Virginia’s executive branch so far.” Governor Abigail Spanberger, a fellow Democrat, has not yet taken a definitive position on the merger.
But the deal follows some clear market logic. Among the benefits: It would create, as my colleague Matthew Zeitlin wrote in May, “a storage juggernaut.”

Israel’s booming tech sector and soaring stock market are just two ways its economy has dramatically changed from the socialism that defined the early decades after the country’s founding in 1948. Now that shift also includes the electricity market. Since market reforms allowed private actors into the grid at the start of last year, more than 2 million citizens, representing more than 500,244 private and business customers, have switched from the Israel Electric Corporation to private providers, according to The Jerusalem Post. Ratepayers buying electricity from private suppliers enjoy discounted rates ranging from 7% to 20%, “thanks to the lower generation costs in the private market.” Another 23,286 households and businesses submitted requests to switch suppliers just last month. OPC Energy, an independent power provider based in Tel Aviv, raised $200 million in bond issuances in August.