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Climate

Interior Memo Complicates Race to Qualify for Wind, Solar Subsidies

On an Interior Department memo, unstoppable wind and solar, and a lawsuit

Interior Memo Complicates Race to Qualify for Wind, Solar Subsidies
Heatmap Illustration/Getty Images

Current conditions: Invest 93 could develop into a tropical depression and dump 3 to 6 inches of rain on southern Louisiana between now and this weekendWestern and central Massachusetts face a small tornado risk this afternoon and evening Spain attributes more than 1,100 deaths this spring and summer to extreme heat.

THE TOP FIVE

1. ‘Drastic’ Interior memo adds further bottleneck for construction of wind, solar

A new secretarial order from the Department of the Interior’s deputy chief of staff for policy, Gregory Wischer, states that “all decisions, actions, consultations, and other undertakings” that are “related to wind and solar energy facilities” will now be required to go through multiple layers of political review from Wischer’s and Interior Secretary Doug Burgum’s respective offices. My colleague Jael Holzman, who reviewed the document, explains that the new layer of review would apply to “essentially anything Interior and its many subagencies would ordinarily be consulted on before construction,” creating a further bottleneck for projects that need to be underway to qualify for federal tax credits under the One Big Beautiful Bill Act. The order lists 68 different activities that will now come under this extra level of review. In sum, the order is “so drastic it would impact projects on state and private lands, as well as federal acreage,” Jael writes. “In some cases, agency staff may now need political sign-offs simply to tell renewables developers whether they need a permit at all.” Read her full report here.

2. Solar, wind ‘unstoppable’ despite the OBBBA: report

Solar and wind are “economically unstoppable,” even without tax credits, a new report on the One Big Beautiful Bill Act from the Columbia Business School found. According to the report, solar photovoltaic prices have decreased by approximately 80% over the past decade, wind by approximately 70%, and lithium-ion battery by approximately 90%. As a result, gas combined cycle power plants are now more expensive than both solar and wind. Still, given the 2026 phaseout of production tax credits, “we will likely see a brief spike in projects for the next 18 months as they race to be placed while still eligible, then a deceleration,” Columbia Business School found. Additionally, while the OBBBA offers a “silver lining” for renewable projects like nuclear, geothermal, and carbon capture, cuts to Department of Energy research and development funding will mean “the United States will only fall further behind in the global clean energy race,” the report continues.

3. 20 states sue FEMA over elimination of natural disaster mitigation grants

A coalition of 20 Democratic-led states filed a lawsuit in federal court in Boston on Wednesday against the Federal Emergency Management Agency over its elimination of a natural disaster mitigation grant program, The New York Times and Associated Press report. The lawsuit, which follows near-record rains in New York and New Jersey, as well as the catastrophic floods in Texas, claims that terminating the Building Resilient Infrastructure and Communities program is unlawful because it wasn’t done with the approval of Congress. The Trump administration’s shutdown of the grant is “making it much harder for communities across our state to protect themselves against future extreme weather events and putting lives at risk,” New Jersey’s attorney general, Matthew J. Platkin, said in a statement.

Initially established by law in 2000, BRIC’s roughly $4.5 billion grants have helped fund nearly 2,000 resiliency and mitigation projects around the country. FEMA justified its decision to terminate the program as part of an ongoing effort by the Trump administration to eliminate “waste, fraud, and abuse.”

4. Governors pen letter to PJM demanding operator restore its ‘legitimacy’ by appointing ‘widely respected leaders’

A bipartisan group of governors representing nine of the 13 states in which PJM operates issued an open letter on Wednesday demanding the grid operator appoint “widely respected leaders” to its two open board seats to “restore PJM’s legitimacy.” The letter specifically cited a lack of confidence in PJM due to its “multi-year inability to connect new resources to its grid efficiently and to engage in effective long-term transmission planning,” as well as the termination of two members of its Board of Managers and the upcoming departure of its CEO. The governors further requested a meeting with PJM’s nominating committee to share its proposed slate of candidates who “understand the concerns of ratepayers facing rising costs and who will be ready to collaborate with the incoming CEO to instill a new, more collaborative and more effective ethos at PJM.”

As my colleague Matthew Zeitlin has reported, though many states in PJM’s service area on the Mid-Atlantic have ambitious decarbonization goals, the operator is “actively seeking to bring new gas-fired generation onto the grid to meet its skyrocketing projections of future demand.” But while PJM has blamed permitting woes and the retirements of power plants for its challenges, “state officials and clean energy advocates have instead placed the blame for higher costs and impending reliability gaps on PJM’s struggles to connect projects, how the electricity market is designed, and the operator’s perceived coolness towards renewables,” Matthew goes on.

5. Netherlands to cut offshore wind goal by 40%

The Netherlands will cut its offshore wind goals by as much as 40%, claiming its aim of 50 gigawatts of generation capacity by 2030 is “not realistic,” Bloomberg reports. The new target will be in the range of 30 to 40 gigawatts, adjusted to consider both the high cost of development and lagging power demand growth. The announcement comes as part of a larger slowdown in offshore wind globally. The International Renewable Energy Agency has stated that to meet global targets of tripling renewable energy use by 2030, offshore wind capacity would need to grow to 494 gigawatts by 2030, up from 73 gigawatts currently.

THE KICKER

Tesla

Tesla teased the launch of a six-seat version of its Model Y, the Model YL, on Wednesday. The car will be available in China in the fall, and appears to be a strategic move by the automaker to “boost its sales amid rising competition from BYD and other domestic manufacturers,” The Verge reports.

Yellow

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AM Briefing

Exxon Counterattacks

On China’s rare earths, Bill Gates’ nuclear dream, and Texas renewables

An Exxon sign.
Heatmap Illustration/Getty Images

Current conditions: Hurricane Melissa exploded in intensity over the warm Caribbean waters and has now strengthened into a major storm, potentially slamming into Cuba, the Dominican Republic, Haiti, and Jamaica as a Category 5 in the coming days • The Northeast is bracing for a potential nor’easter, which will be followed by a plunge in temperatures of as much as 15 degrees Fahrenheit lower than average • The northern Australian town of Julia Creek saw temperatures soar as high as 106 degrees.

THE TOP FIVE

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Exxon Mobil filed a lawsuit against California late Friday on the grounds that two landmark new climate laws violate the oil giant’s free speech rights, The New York Times reported. The two laws would require thousands of large companies doing business in the state to calculate and report the greenhouse gas pollution created by the use of their products, so-called Scope 3 emissions. “The statutes compel Exxon Mobil to trumpet California’s preferred message even though Exxon Mobil believes the speech is misleading and misguided,” Exxon complained through its lawyers. California Governor Gavin Newsom’s office said the statutes “have already been upheld in court and we continue to have confidence in them.” He condemned the lawsuit, calling it “truly shocking that one of the biggest polluters on the planet would be opposed to transparency.”

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