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Last summer was the hottest in two millennia. We won’t get any relief this year.
An overwhelming majority of Americans will experience above-average heat this summer, and temperatures in more than half of the contiguous United States are expected to top the historical average by at least 2 degrees Fahrenheit, according to AccuWeather. New York is expected to endure twice as many 90-plus-degree days as last year; Boston could experience up to four times as many.
Americans got a taste of what’s to come this week, with a blistering heat wave that began in the Southwest and has scorched the East Coast for the past three days. That heat may have come early based on the historical averages, but considering more recent trends, it’s right on track.
“The biggest changes that we have seen in recent decades is that the heat wave season has been expanding, starting earlier in the late spring and ending later into early fall, on average,” AccuWeather Senior Meteorologist Brett Anderson told Heatmap.
The northern Rockies, Great Lakes, and the Northeast are areas of particular concern, Paul Pastelok, AccuWeather’s Lead Long-Range Forecaster, told Heatmap. Those regions will likely experience less precipitation and more intense heat this summer compared to their historical average. “The Northern Plains and Upper Midwest are tricky,” Pastelok said. “Right now, this area is getting rain, but this could cut off by the very end of June into July, and turn around to dryness with the heat following.”
While temperatures will most likely peak in the interior Southwest — Nevada, Arizona, and New Mexico — by early July, the region can expect temperatures between 112 and 118 degrees until then. Monsoon season, which brings warm winds and rainfall inland, will likely arrive in late July instead of the usual late June, Pastelok said. Peak heat could come much later — anytime between July and September — for those in the Great Lakes, the Ohio Valley, and the Northeast.
The biggest “warm anomalies” are expected in the Southwest and central Rockies, the Great Lakes, the Ohio Valley and the Northeast, according Tom Kines, a senior meteorologist at AccuWeather. “We are looking at anomalies for the entire summer of +4 degrees (F) which is pretty significant over a 3 month period,” Kines wrote in an email to Heatmap.
Heat won’t be the only extreme weather this season. Drought could be severe, particularly in the Southwest — including parts of Texas, Oklahoma, and Kansas, where rainfall could come in below 50% of the historical average. That dry spell could intensify over the northern Plains, Great Lakes, and the Northeast later in the summer. The Gulf Coast, meanwhile, can anticipate a staggering 22 to 36 inches of rain this season — compared to its usual 15 to 24 inches — which will likely make flooding an issue.
After a wetter winter, meteorologists anticipated a slow start to the wildfire season in California and the Southwest. In fact, the number of wildfires this year is expected to come in below average: AccuWeather meteorologists predict 35,000 to 50,000 wildfires this year, compared to a historical average of about 69,000. Yet the fires in California also seem to have picked up speed a little earlier than normal. Last week saw more than two dozen fires in the state, perhaps heralding increased fire activity to come.
So how will we deal with all this? Northern cities, especially, tend to be less equipped to deal with extreme summer heat. In Boston, temperatures reached a record-breaking 98 degrees on Wednesday, a day after Mayor Michelle Wu declared a heat emergency. The city opened cooling centers this week in an attempt to minimize the number of heat-related medical emergencies.
Boston Green New Deal Director Oliver Sellers-Garcia told Heatmap that the city is bringing more government agencies into the heat management effort. The Fire and Parks departments plan to set up misting stations, and the city will continue to provide extra pop-up cooling centers in coordination with Boston’s Centers for Youth and Families. Those strategies, Sellers-Garcia said, “can have an instant benefit for someone, whether it’s just a super hot day and they have to get to work or it’s a declared heat wave.”
In Florida, people are used to chronic heat, Miami-Dade County’s Chief Heat Officer Jane Gilbert told Heatmap. Last year the county had 42 heat advisories (which happens when the thermometer reaches 105) and 70 warnings (110), Gilbert said, and this season is already proving more intense: May was the warmest ever on record in the state. To protect residents, the county has established a comprehensive public awareness campaign that targets those most affected by the heat, including outdoor workers, children, pregnant women, the elderly, and people with chronic illnesses. It also runs more than 30 cooling centers.
According to Gilbert, the goal is to educate people about the extent of heat impacts so they can make better choices — drink more water, find shade, limit physical activity — and protect their health. “We haven’t fully appreciated, historically as a community, how it impacts our lives,” she said.
Here’s what’s happened so far ...
June 24: On Juneteenth, over 82 million Americans were under active National Weather Service extreme heat alerts — but, due to the national holiday, many publicly operated cooling centers were closed. While Boston had opened 14 new facilities in partnership with the Centers for Youth and Families, for instance, none of them stayed open Wednesday.
The same thing happened in New York, where more than 200 cooling centers were closed for the holiday, most of them libraries. While other heat preparedness measures were still in place — Gov. Kathy Hochul announced free admission for state parks — residents counting on a facility near home had to change plans last minute. On Sunday, New York turned 45 public schools into cooling centers, this time because the public libraries were closed due to budget cuts.
In Chicago, only one cooling center was open during the holiday. The lack of cooling spaces available sparked action from homelessness advocates, who are urging the city to offer more cooling centers that are open 24/7 and also to make those facilities available when the heat index is above 80 degrees Fahrenheit.
Because cooling centers are often multi-purpose spaces, data on their usage is limited. In Boston, 245 people visited cooling centers from June 18 to 20, the mayor’s office told me. New York City’s Department of Emergency Management could only say that six people visited four of the schools open Sunday.
June 21: Communities from Kansas to Maine experienced record-breaking temperatures, with heat indices above 100 degrees Fahrenheit in some places. Cities including Philadelphia, Cleveland, and Burlington, Vermont opened cooling centers, and Boston and New York activated heat emergency plans. Schools in Buffalo, New York moved to half-day schedules for the week in response to temperature advisories.
The heat wave was expected to hold into the weekend, increasing the risk of emergencies. But ensuring that at-risk residents are aware of public services and heat mitigation strategies is often more difficult than simply providing amenities like cooling centers and air conditioners, Benjamin Zaitchik, a professor of climate dynamics at Johns Hopkins University, told Heatmap. “Preventing heat deaths — in principle, at least — is easy,” Zaitchik said. “It just requires good planning, good communication, good networks.”
The same heatwave afflicted much of the Southwestern United States the week before. Temperatures in Phoenix and Las Vegas exceeded 110 degrees, breaking records and prompting cities to issue heat advisories covering tens of millions of people. At a Trump rally in Las Vegas, 24 people received treatment for heat-related complications and six were hospitalized, The Guardian reported.
June 14-19: More than 1,000 people died during the sacred Muslim pilgrimage known as the hajj as extreme heat gripped Saudi Arabia in mid-June. In Mecca, where temperatures exceed 120 degrees Fahrenheit, worshippers gripped umbrellas and water bottles to combat the heat. A study from 2019 predicted that hajj conditions would exceed an “extreme danger heat threshold” more frequently in the coming decades, especially when the pilgrimage — which is scheduled according to the lunar calendar — coincides with the warmer months of the year.
The death toll was about five times higher than last year, according to CNN.
June 10: Passengers on a Qatar Airways flight passed out from heat as their plane sat on the tarmac at Athens International Airport. Flight 204, which was delayed for three hours with passengers stuck inside, experienced a malfunction in its air conditioning. Two days later, authorities shut down the Acropolis for five hours due to the 102 degree weather, which marked Greece’s earliest heat wave on record. Many schools were also closed for the day, and several air-conditioned spaces were opened to the public. Greece’s Health Ministry advised older people and those with chronic illnesses to stay indoors.
The intense weather continued throughout the weekend, and at least five tourists were reported to have died due to extreme heat.
Other parts of Southern Europe, such as Cyprus and Turk, have also suffered through heat waves this year. During the second week of June, temperatures in Cyprus exceeded 104 degrees every day and classes ended early. On June 14, some areas experienced their hottest June day ever, reaching 113 degrees. That same week, Turkey also battled record temperatures — they were 8 to 12 degrees higher than the average for the season.
May and June: Both Mexico and India faced extreme temperatures during national elections.
Record-breaking heat waves have scorched Mexico since late March, causing blackouts, wildfires, heat strokes, and animal deaths. On May 25, Mexico City set a new heat record, with the temperature there surpassing 94.4 degrees, while other cities in the country registered even higher temperatures — well above 115 degrees. As of June 12, at least 125 deaths had been attributed to the heat, which has been made worse by an intense drought linked to El Niño. With reservoirs at less than 27% capacity, millions could run out of water by the end of this month.
World Weather Attribution, a research group that analyzes the degree to which climate change is causing extreme weather events, estimated that global warming has made extreme temperatures in the region 35 times more likely. “These trends will continue with future warming and events like the one observed in 2024 will be very common” in a world where average temperatures are 2 degrees Celsius higher than pre-industrial levels, the group stated in a release.
Despite sweltering conditions, about 100 million voters elected Claudia Sheinbaum, Mexico’s first female president, on June 2. In her victory speech, Sheinbaum, a climate scientist with a focus on energy engineering, said she will work to maintain the country’s energy sovereignty. While Sheinbaum has vouched to expand the country’s renewable energy, she has also been criticized for her support of Pemex, the state-owned oil company.
Two days later, on June 4, India re-elected Prime Minister Narendra Modi for a third term during the country’s longest-ever heatwave. By the time the weeks-long voting process wrapped, extreme heat had killed more than 100 people. In Uttar Pradesh, at least 33 poll workers died in a single day, CNN reported. In response, local governments have imposed measures to prevent water waste and protect construction workers. Yet, according to analysis by the Centre for Policy Research found in 2023, most of India’s heatwave policies are underfunded and fail to target the country’s most vulnerable groups.
More extreme weather hammered Mexico beginning June 20 as tropical storm Alberto brought torrential rain and flooding to the country’s east. AccuWeather meteorologists said the storm is just the start of a predicted intense hurricane season in the area. Most of India is still under heatwave alerts, but the weather is set to improve in the next few days as the monsoon finally advances after a week-long delay.
May: Scarce rainfall and soaring heat have led to drought conditions that are threatening China’s food production and water supply. The provinces of Shandong and Henan — crucial to the country’s wheat production — are some of the most affected, and the State Flood Control and Drought Relief Headquarters has dispatched two disaster relief guidance teams. New technology, such as multi-functional seeders, and multiple reservoirs have been deployed to ameliorate conditions.
Also on Wednesday, the China Meteorological Administration reported that several regional weather stations recorded the highest temperatures ever in mid-June. Conditions are expected to worsen, as some Chinese provinces are expected to reach 111 degrees this week.
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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.”
Will moving fast and breaking air permits exacerbate tensions with locals?
The Trump administration is trying to ease data centers’ power permitting burden. It’s likely to speed things up. Whether it’ll kick up more dust for the industry is literally up in the air.
On Tuesday, the EPA proposed a rule change that would let developers of all stripes start certain kinds of construction before getting a historically necessary permit under the Clean Air Act. Right now this document known as a New Source Review has long been required before you can start building anything that will release significant levels of air pollutants – from factories to natural gas plants. If EPA finalizes this rule, it will mean companies can do lots of work before the actual emitting object (say, a gas turbine) is installed, down to pouring concrete for cement pads.
The EPA’s rule change itself doesn’t mention AI data centers. However, the impetus was apparent in press materials as the agency cited President Trump’s executive order to cut red tape around the sector. Industry attorneys and environmental litigants alike told me this change will do just that, cutting months to years from project construction timelines, and put pressure on state regulators to issue air permits by allowing serious construction to start that officials are usually reluctant to disrupt.
“I think the intended result is also what will happen. Developers will be able to move more quickly, without additional delay,” said Jeff Holmstead, a D.C.-based attorney with Bracewell who served as EPA assistant administrator for air and radiation under George H.W. Bush. “It will almost certainly save some time for permitting and construction of new infrastructure.”
Air permitting is often a snag that will hold up a major construction project. Doubly so for gas-powered generation. Before this proposal, the EPA historically was wary to let companies invest in what any layperson would consider actual construction work. The race for more AI infrastructure has changed the game, supercharging what was already an active debate over energy needs and our nation’s decades-old environmental laws.
Many environmental groups condemned the proposal upon its release, stating it would make gas-powered AI data centers more popular and diminish risks currently in place for using dirtier forms of electricity. Normally, they argue, this permitting process would give state and federal officials an early opportunity to gauge whether pollution control measures make sense and if a developer’s preferred design would unduly harm the surrounding community. This could include encouraging developers to consider alternate energy sources.
“Inevitably agencies have flexibility as to how much they ask, and what this allows them to do is pre-commit in ways that’ll force agencies to take stuff off the table. What’s taken off the table, it’s hard to know, but you’re constraining options to respond to public concerns or recognize air quality impacts,” said Sanjay Narayan, Sierra Club’s chief appellate counsel.
Herein lies the dilemma: will regulatory speed for power sacrifice opportunities for input that could quell local concerns?
We’re seeing this dilemma play out in real time with Project Matador, a large data center proposal being developed in Amarillo, Texas, by the Rick Perry-backed startup Fermi Americas. Project Matador is purportedly going to be massive and Fermi claims its supposed to one day reach 11 GW, which would make it one of the biggest data centers in the world.
Fermi’s plans have focused on relying on nuclear power in the future. But the only place they’ve made real progress so far in getting permits is gas generation. In February, the Texas Commission on Environmental Quality gave Fermi its air permit for building and operating up to 6 gigawatts of gas power at Project Matador. At that time, Fermi was also rooting for relaxed New Source Review standards, applauding EPA in comments to media for signaling it would take this step. The company’s former CEO Toby Neugebauer also told investors on their first earnings call that Trump officials personally intervened to help get them gas turbines from overseas. (There’s scant public evidence to date of this claim and Neugebauer was fired by Fermi’s board last month.)
But now Fermi’s permit is also being threatened in court. In April, a citizens group Panhandle Taxpayers for Transparency filed a lawsuit against TCEQ challenging the validity of the permit. The case centers around whether the commission was right to deny a request for a contested case hearing brought by members of the group who lived and worked close to Project Matador. “Once these decisions are made, they don’t get reversed,” Michael Ford, Panhandle Taxpayers for Transparency’s founder, said in a fundraising video.
This is also a financial David vs. Goliath, as Ford admits in the fundraising video they have less than $2,000 to spend on the case – a paltry sum they admit barely covers legal bills. We’re also talking about a state that culturally and legally sides often with developers and fossil fuel firms.
At the same time, this lawsuit couldn’t come at a more difficult time as Fermi is struggling with other larger problems (see: Neugebauer’s ouster). Eric Allman, one of the attorneys representing Panhandle Taxpayers for Transparency, told me they’re still waiting on a judge assignment and estimated it’ll take about one year to get a ruling. Allman told me legally Fermi can continue construction during the legal challenge but there are real risks. “Applicants on many occasions will pause activity while there is an appeal pending,” he told me, “because if the suit is successful, they won’t have an authorization.”
Aerial photos reported by independent journalist Michael Thomas purportedly show Fermi hasn’t done significant construction since obtaining its air permit. Fermi did not respond to multiple requests for comment on the lawsuit.
Industry attorneys I spoke to who wished to remain anonymous told me it was too early to say whether EPA’s rulemaking would exacerbate local conflicts by making things move faster. “A lot of times the environmental community likes to litigate things in the hope delays will kill a project, so in that regard, this strategy may be harder for them to implement now,” one lawyer told me. “But just because a plant gets a permit doesn’t mean they can build.”
Environmental lawyers, meanwhile, clearly see more potential for social friction in a faster process. Keri Powell of the Southern Environmental Law Center compared this EPA action to xAI’s rapid buildout in Tennessee and Mississippi where the Al company’s construction of gas turbines before it received its permits has only added to local controversy. This new rule would not make what xAI did permissible; this is a different matter. Yet there are thematic similarities between what the company is doing and the new permitting regime, with natural gas generation expanding faster when companies are allowed to start forms of site work before an air permit is issued.
“By the time a permit is issued, the company will be very, very far along in constructing a facility. All they’ll need to do is bring in the emitting unit, and oftentimes that doesn’t entail very much,” she said. “Imagine you’re a state or local permitting agency – your ability to choose something different than what the company already decided to do is going to be limited.”