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Current conditions: U.K. park rangers warn of a potentially “catastrophic” fire season after one of the driest springs on record • As many as nine tornadoes may have hit North Texas over the weekend • It’s expected to be a “nearly perfect” 43 degrees in Hopkinton, Massachusetts, today for the start of the 129th Boston Marathon.
China has “completely stopped” imports of liquified natural gas from the U.S., having last received a shipment from a tanker from Corpus Christi on February 6, the Financial Times reports. A second China-bound tanker rerouted to Bangladesh after Beijing imposed a 15% tariff on U.S. LNG in retaliation for President Trump’s initial tariffs; that duty has since increased to 49%, and imports of U.S. LNG have ceased altogether.
As my colleague Emily Pontecorvo has written, China had been a “relatively small buyer” of U.S. LNG, with only about 5% of American exports heading to the country last year. That number had been “set to rise rapidly over the next few years, however, as Chinese companies have signed a number of long-term contracts with U.S. LNG projects that are about to come online.” China, meanwhile, has turned to Russia — which has been selling gas for cheap since Europe’s boycott following the invasion of Ukraine — to meet its needs.
Nearly half of the U.S.’s LNG exports went to Europe last year, but some analysts on the continent have also begun to warn against relying on American gas due to Trump’s disregard for U.S.-EU trade norms. “We are going from one problematic dependency — on Russian pipeline gas — to another, on U.S. LNG,” Arne Lohmann Rasmussen, chief analyst and head of research at Denmark’s Global Risk Management, told Gas Outlook.
U.S. Energy Information Administration
Pope Francis, who raised awareness of climate change and called for it to be addressed with “swift and unified global action,” died on Monday, the Vatican announced. Francis had been in poor health, having been hospitalized for five weeks earlier this year, but he managed to appear for crowds on Easter Sunday for the traditional blessing from the balcony of St. Peter’s Basilica.
Central to Francis’ legacy are his consistent and urgent calls to protect the environment. In 2015, he published his 184-page Laudato si’: On Care for Our Common Home, in which he described climate change as “a global problem with grave implications: environmental, social, economic, political, and for the distribution of goods,” and “one of the principal challenges facing humanity in our day.” In 2019 he called “ecocide” a sin and a crime against peace, and in 2023 he published a 15-page rebuke of the continued “resistance and confusion” over addressing the climate crisis, writing, “Despite all attempts to deny, conceal, gloss over, or relativize the issue, the signs of climate change are here and increasingly evident.” Poor health prevented Pope Francis from attending COP28 in Dubai that year to deliver a companion speech, but in 2024, the Vatican arranged a three-day conference on the climate, at which the pope warned political leaders to examine whether “we are working for a culture of life or for a culture of death.”
On Friday, the Office of Personnel Management filed proposed regulations to bring back Schedule F, which would reclassify and strip civil service protections from an estimated 50,000 federal workers. Now renamed “Schedule Policy/Career,” the proposal has been tweaked from the original Schedule F plan that Trump implemented at the end of his first term “to make it more legally palatable, including moving the final decision-making authority regarding the conversion of jobs to the president, rather than the OPM director,” Government Executive writes.
As I’ve written before, the Trump administration designed its reclassification of federal employees to “make it easier to replace ‘rogue’ or ‘woke’ civil servants and would-be whistleblowers, a.k.a. ‘the deep state,’ with party-line faithful.” Daniel Farber, the director of the Center for Law, Energy, and the Environment at the University of California, Berkeley, warned me that “What we’re going to end up with is an executive branch that’s just uninformed.”
The Department of Health and Human Services has eliminated the Centers for Disease Control and Prevention’s firefighter health program, including research by the National Institute for Occupational Safety and Health into how to protect first responders from the dangers of electric vehicle fires, E&E News reports. The cuts were part of an 18% reduction in the HHS workforce and the nearly complete elimination of NIOSH in the name of government efficiency. The research was critical, advocates say, because EV batteries release harmful chemicals and toxins when they burn, necessitating different safety measures than those for other types of fires.
“In firefighting, it’s always, ‘Guess what, this is bad,’ after you’ve been exposed to it for 40 years,” Tim Ferretti, a CDC researcher who was recently laid off, told E&E News, adding, “But with electric cars, NIOSH was trying to be ahead of the game and stop a potential problem before it becomes a chronic issue.”
Chinese media reported on Friday that the country has successfully reloaded fuel into a working thorium molten salt reactor, making it the world’s first stable, operable reactor of its type. The experimental unit, located in the Gobi Desert of Mongolia, reportedly generates 2 megawatts of thermal power, according to Interesting Engineering.
MSRs use molten salt as a fuel carrier and coolant (instead of water) and thorium — an abundant radioactive element — as their fuel source. Many consider MSRs to be a safer form of nuclear power because they don’t use uranium, which can be “weaponized,” and they have far less risk of a meltdown because “salts can carry greater loads of thermal energy at much lower pressure” than water, Futurism writes. Due to the technical hurdles of creating an operable MSR, research by U.S. scientists tapered off after the 1940s and 1950s, was “assumed obsolete,” and had been made publicly available — reportedly serving as the backbone of the breakthrough by China. As the project’s chief scientist Xu Hongjie said in his closed-door announcement of the MSR’s success to the Chinese Academy of Sciences, “Rabbits sometimes make mistakes or grow lazy. That’s when the tortoise seizes its chance.”
“The cameras are staying on.” —A spokesperson for New York’s Democratic Governor Kathy Hochul on the state’s decision to continue charging cars a toll for entering Lower Manhattan past Sunday, the Trump administration’s deadline for ending congestion pricing.
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On budget negotiations, Climeworks, and DOE grants
Current conditions: It’s peak storm season in the U.S., with severe weather in the forecast for at least the next six days in the Midwest and East• San Antonio, Texas, is expected to hit 108 degrees Fahrenheit today• Monsoon rains have begun in Sri Lanka.
The House Budget Committee meeting to prepare the reconciliation bill for a floor vote as early as next week appears to be a go for Friday, despite calls from some Republicans to delay the session. At least three GOP House members, including two members of the Freedom Caucus, have threatened to vote no on the budget because a final score for the Energy and Commerce portion of the bill, which includes cuts to Medicaid, won’t be ready from the Congressional Budget Office until next week. That is causing a “math problem” for Republicans, Politico writes, because the Budget Committee “is split 21-16 in favor of Republicans, and Democrats are expecting full attendance,” meaning Republicans can “only lose two votes if they want to move forward with the megabill Friday.” Republican Brandon Gill of Texas is currently out on paternity leave, further reducing the margin for disagreement.
House Speaker Mike Johnson is also contending with discontent in the ranks over cuts to clean energy tax credits. “It’s not as bad as I thought it was going to be, but it’s still pretty bad,” New York Republican Andrew Garbarino, a co-chair of the House Bipartisan Climate Solutions Caucus, told Politico on Thursday. But concerns about the cuts, which would heavily impact Republican state economies and jobs, do not appear to be a “red line” for many others, including Georgia’s Buddy Carter, whose district benefits from Inflation Reduction Act credits for a Hyundai car and battery plant that is among the targets for elimination. You can learn more about the cuts Republicans are proposing to the IRA in our coverage here.
The Swiss carbon removal company Climeworks is preparing for significant cuts to its workforce, citing the larger economic landscape and the Trump administration’s lack of consistent support. The company currently has 498 employees, but is undergoing a consultation process, indicating it is looking to cut more than 10% of its workforce at once, SwissInfo.ch reports. “Our financial resources are limited,” Climeworks’ co-founder and managing director Jan Wurzbacher said in comments on Swiss TV.
Though Interior Secretary Doug Burgum is a known proponent of carbon capture, and there had been excitement in the industry that Trump’s attempts to expedite federal permitting would benefit carbon storage sites, the administration has also hollowed out the Department of Energy’s carbon removal team, my colleague Katie Brigham has reported. The ongoing funding cuts and uncertainty have made it difficult to get information from the government that could affect Climework’s Project Cypress in Louisiana, although Wurzbacher stressed that “we are not currently aware that our project would be stopped.”
Energy Secretary Chris Wright announced in a Thursday memo that the department will be reviewing at least $15 billion worth of grants awarded to “power grid and manufacturing supply chain projects” under the Biden administration, Reuters reports. “With this process, the Department will ensure we are doing our due diligence, utilizing taxpayer dollars to generate the largest possible benefit to the American people and safeguarding our national security,” Wright said in his statement.
The memo goes on to note that the DOE plans to prioritize “large-scale commercial projects that require more detailed information from the awardees for the initial phase of this review, but this process may extend to other DOE program offices as the reviews progress.” Projects that don’t meet the DOE’s standards could be denied, as could projects of grantees who fail to “respond to information requests within the provided time frame, does not respond to follow-up questions in a timely manner.” As of last week, Wright told lawmakers, “we’ve canceled zero” existing projects so far, E&E News writes; the agency will reportedly be reviewing at least 179 different awards during its audit.
The number of National Weather Service offices ending 24-hour operations and severe weather alerts is increasing. On Thursday, The San Francisco Chronicle confirmed that California’s Sacramento and Hanford offices, which provide information to more than 7 million people in the Central Valley, have been forced to reduce service due to “critically reduced staffing.”
Eliminating 24-hour service is especially concerning for the Central Valley and surrounding foothills, where around-the-clock weather updates can be critical. “These are offices that have both dealt with major wildfire episodes most of the past 10 years, and we are now entering fire season,” Daniel Swain, a climate scientist at UCLA and UC Agriculture and Natural Resources, told the Chronicle. “That’s a big, big problem.” Swain additionally shared on LinkedIn a map he’d put together of regions in the U.S. that no longer have full-service weather coverage, including “a substantial chunk of Tornado Alley during peak tornado season and the entirety of Alaska’s vast North Slope region.” The NWS is additionally seeking to fill 155 vacancies in coastal states that could face risks as the Atlantic hurricane season begins at the end of the month, The Washington Post reports. An estimated 500 of 4,200 NWS employees have been fired or taken early retirements since the start of Trump’s term.
Heatmap’s “most fascinating” EV of 2025 just got pushed back to 2026. The Ram 1500 Ramcharger — which has a 140-mile electric range as well as a V6 engine attached to a generator to power the car when the battery runs out — is now set to launch in the first quarter of next year due to “extending the quality validation period,” Crain’s Detroit Business reported this week. Parent company Stellantis also pushed back the launch of its fully electric Ram 1500 REV until summer 2027, with a planned model year of 2028. “Our plan ensures we are offering customers a range of trucks with flexible powertrain options that best meet their needs,” Stellantis spokeswoman Jodi Tinson told Crain’s in an email. Though you now have even longer to wait, you can read more about the car Jesse Jenkins calls “brilliant” here.
GMC
The 2026 GMC Hummer EV just got even more ridiculous. “Thanks to the new Carbon Fiber Edition,” the 9,000-pound car “can zoom to 60 miles per hour in 2.8 seconds,” InsideEVs reports.
A conversation with Jillian Blanchard of Lawyers for Good Government about the heightened cost of permitting delays
This week I chatted with Jillian Blanchard, vice president of climate change and environmental justice with Lawyers for Good Government, an organization that has been supporting beneficiaries of the Inflation Reduction Act navigate the uncertainties surrounding tax credits and grant programs under the Trump administration. The reason I wanted to chat with Jillian is simple: the IRA is under threat for the first time under a Republican Congress. I wanted to understand how solar and wind projects could be impacted by the House Republican reconciliation bill and putting IRA tax credits in doubt. I learned a lot.
The following conversation was lightly edited for clarity.
Okay, Jillian, what’s the topline here? How would the GOP reconciliation bill impact individual projects’ development?
There are big chunks of the reconciliation bill that will have dramatic impacts on project development, including language that would repeal or phase out bipartisan and popular tax credits in a way that would make it very, very difficult to invest in projects. I can get into the weeds next.
But it’s worth saying first – the group of programs aside from tax credits that [House Republicans] would repeal represents every single part of America. Hundreds of projects that will not go forward if these programs are not going well. And they have several legally obligated grants that EPA has already mucked up in a litany of ways. But what they’re proposing to do is to pull the rug out from under those programs. On top of that they want to pull any unobligated funding out.
I think it’s extremely misrepresentative to say these are not big cuts. They’re significant cuts to clean air and clean water across the board.
Help me get into the weeds about how phasing out the credits will make it harder to invest in a project.
Right now, a bank might want to invest a certain amount of money in a clean energy project because they know on the back end they can get 30% or 40% back on their investment. A return through tax credits. They can bank on that, because tax credits are a guarantee.
Was that an intentional pun? “Bank”?
Yeah, it is. I love a good pun. You opened the floodgates, that was a mistake.
But anyway, the program itself was supposed to be around until at least 2032 and the bank could bank on those tax credits. That’s a big runway, because projects could get delayed and you could lock in the credit as soon as you started construction.
Now they’re doing a phase-out approach where if your project is not placed into service before a certain date, you don’t avoid the phase out. You don’t get any protections if you’re starting your project now or next year. It has to be placed in service before 2028 or else your project may not be eligible. You are constructing it, you are financing it, but then through no fault of your own – a storm or whatever – then suddenly that project is no longer entitled to get 30% or 40% back.
That’s a big risk. And banks don’t like risk.
Opposition on the ground also delays projects the way a storm does. Would this empower those opponents?
Oh, totally. Totally. If anyone wants to fight a project, a bank might be even less likely to invest in it. The NIMBYs for that particular project become a risk.
What would you tell a developer at this moment who is wondering about the uncertainty around the IRA?
I would tell them that now is the time to speak up. If they want to stay in this business and make sure their energy stays as low-cost as it already is, they need to speak up right now, no matter what their political party affiliation is. Make it clear solar isn’t going away, wind isn’t going away, storage isn’t going away. These are markets America needs to be competitive with the rest of the world.
Investors are only just now starting to digest what the proposed cuts will mean, especially for energy storage.
Is Wall Street too sanguine about the House of Representatives’ proposal to gut the Inflation Reduction Act? When the House Ways and Means Committee unveiled its language on the law on Monday — phasing out tax credits, implementing strict restrictions on business relationships with Chinese companies, and altering when projects are eligible for credits — some investors responded to the cutbacks by driving up the prices of some clean energy stocks.
The residential solar company Sunrun traded up on Tuesday by 8.6%, and the American solar manufacturer First Solar was up over 22%. (Stock movements on Monday were largely in response to the pause of the U.S.-China trade war, also announced that morning.)
“The early drafts of a Republican tax and spending bill weren’t as bad for renewables as feared,” wrote Barron’s. Morgan Stanley analysts used the same language — “not as bad as feared” — in a note to clients on the text. “Industry was bracing for way worse,” Don Schneider, the deputy head of public policy for Piper Sandler and a former Republican staffer on the Ways and Means Committee, wrote on X.
While many analysts — and, to be honest, journalists at Heatmap — have issued dire warnings about how the various provisions of the Ways and Means language could together make much of the IRA essentially impossible to use, even before the tax credits phase out, investors on Wall Street and in Washington seem to have shrugged them off. Some level of cutting was all but inevitable, and “not as bad as it could have been” is reason enough to celebrate — plus there’s also “it’ll probably change, anyway.”
There’s something to this. A group ofmoderate Republicans criticized the language on Wednesday as too restrictive, specifically citing changes to three overarching features of the tax credits: when projects would be eligible for tax credits, where companies are able to source components and materials, and whether companies are allowed to freely buy and sell tax credits generated by their projects. (Wouldn’t you know it, these complaints largely echo what Heatmap has written in the past few days.)
In the Senate, meanwhile, Republican Kevin Cramer of North Dakota, said that the text as written would be too damaging to advanced nuclear and enhanced geothermal generation. The phase-out timelines in the Ways and Means language are “too short for truly new technologies,” Cramer told Politico.
Pavan Venkatakrishnan, an infrastructure fellow at the Institute for Progress, told me that he expects the bill to evolve in a way to meet the concerns of Senate Republicans like Cramer.
“Given considerations both political and procedural, like the more flexible reconciliation instructions Senate Finance is afforded relative to House Ways and Means and the disproportionate impact current text entails for technologies Republicans traditionally favor, like nuclear, geothermal, and hydropower, I think it’s fair to say that this text will change over the coming weeks,” he said.
Finally, days after the Ways and Means committee made its thinking public, Wall Street seems to be catching on to the implications. The new foreign entities of concern rules pose a particularly huge danger to the renewable energy sector, according to Jefferies analyst Julien Dumoulin-Smith, and especially to energy storage, which would be the key provider of reliability on a renewable-heavy grid. Energy storage looks to account for almost 30% of new generator additions this year, according to the Energy Information Administration.
“We think the market got it wrong for storage,” Dumoulin-Smith wrote in a note to clients. The market has yet to “digest and fully interpret the implications of proposed tariff and tax policy, which as currently written do not bode well for storage,” he said. The foreign sourcing language “is more restrictive than initially thought, with some industry stakeholders calling the proposal a near repeal on IRA.”
The storage supply chain is intensely entangled with China. Many companies, including Tesla,have been forced to disclose to investors just how reliant they are on China for their storage businesses.
China alone accounted for 70% of battery imports in 2024, according to industry analysts at BloombergNEF, over $14 billion worth. About a quarter of the metals used in battery manufacturing — especially graphite — came from China, BNEF figures show. For specific battery chemistry like lithium iron phosphate, which is popular for stationary storage products, the supply chain is essentially 100% Chinese.
Wall Street revenue and profit estimates “do not adequately capture the extent of risks” facing the U.S. storage industry, Dumoulin-Smith wrote. The storage company Fluence’s stock fell around 1.5% today, and is down over 5.5% since close of trading on Monday, as the market began to digest the House language.
It is possible that the foreign sourcing rules will be loosened and phase-outs for tax credits and transferability lengthened, Venkatakrishnan told me, but not in a way that would endanger the overall structure of the bill. Cuts to the Inflation Reduction Act are a key source of revenue for the Republican bill-writers to ensure as many of the tax cuts they want can fit within the budgetary scope they’ve given themselves.
“Any adjustments will be made with an eye toward ensuring budgetary offsets are sufficient to enable success of the broader enterprise,” Venkatakrishnan said. In other words, as much as some lawmakers may want to see these tax credits preserved, ultimately, they’ve got to pass a bill to ensure Trump’s tax cuts stick around.