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Georgetown’s Lisa Heinzerling on the Supreme Court’s climate shell game.

It’s a sad day for the regulatory state. On Friday, the Supreme Court struck down a 40-year-old precedent that deferred to agencies’ interpretations of their own mandates where the statutory guidance was incomplete or ambiguous, otherwise known as Chevron deference, after the losing side in the original case. Not only has it been cited in more than 19,000 federal opinions, it’s the one congressional aides — the ones actually writing the laws — are most familiar with, as Lisa Heinzerling, a professor of environmental law at Georgetown Law, told me.
“So there’s a way in which Congress has been relying on Chevron for decades, right?” she said. “If Congress banked on Chevron, banked on the idea that if they didn’t make things clear the agency would take care of it, then that reliance is not being honored.”
This is not the first time the court has come for regulators. Two years ago, in West Virginia v. Environmental Protection Agency, the court held that the authority to resolve questions of interpretation involving high-stakes political and economic questions, a.k.a. “major questions,” rests with Congress, not the agencies, raising the threat of legal nightmares should regulators attempt to take any kind of big swings. This explicitly concerns only “extraordinary cases,” and yet regulators already appear to be reining in their own ambition to gird against potential challenges.
Friday’s decision comes the day after the court struck down a provision of the Dodd-Frank Act giving certain enforcement powers to the Securities and Exchange Commission and granted a stay on enforcement of the Environmental Protection Agency’s “good neighbor” rule, aimed at preventing harmful pollution from crossing state lines.
The two cases decided this week — Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce, et al. and Relentless, Inc. v. Department of Commerce — turned on whether private commercial fishing companies could be compelled to pay for federal monitors to ride along and ensure they were complying with applicable fishing rules. Or at least they did initially. “The court decided to decide only the question whether to overrule Chevron, the case that establishes deference for agencies legal interpretations,” Heinzerling explained the day before the ruling came down. Our conversation has been edited for length and clarity.
Without Chevron, are we going to get completely bogged down in revising statutes? Are our courts going to be clogged up with nuisance suits from people who simply don’t want to have to follow the rules?
I think there will be a lot of efforts to undo other precedent that relied on Chevron — and especially paired with the Corner Post case, which has to do with the timing of challenges to agency action. You know, realistically, if that case comes down, accepting a longer period of time in which to sue people could go nuts, challenging all sorts of agency interpretations from the past. So that’s disruptive.
The Supreme Court is constantly saying, well, go and get a new statute. Well, okay, we saw what happens when Congress passes a new statute: The court holds it unconstitutional. The Dodd-Frank Act. Look what happened to the Affordable Care Act. These major pieces of legislation, major, major political stakes, and the court has not respected those. So I feel like we’re kind of in a shell game, something that’s not quite honest. That in all of these cases, actually, Congress did pass a law, but the court either rules it unconstitutional, says it’s not clear enough. And so I don’t think they’re respecting Congress’s handiwork as it exists now.
You mentioned Corner Post, could you talk about that case?
It came to the court kind of quietly. It’s got rich backers. It’s just a little truckstop, just like the commercial fisherman, that wants to challenge a rule on credit cards. They were incorporated after the rule went into effect, and they want to say, we weren’t injured when it first passed, so we should get the benefit of a longer period of time in which to sue. And amazingly, the justices seemed willing to accept that. That just adds to the stakes of overruling Chevron.
The Chevron deference is a big part of how agencies do their job. But after West Virginia, does it still matter? I’m not a lawyer, but I’m going to pretend I am one when I ask: Does the major questions doctrine effectively invalidate Chevron anyway?
No. They said that the major questions idea was for extraordinary cases, to see how it turns out over the years, but it’s not every case. Where Chevron applied, theoretically, in every case. At least it was a mix.
What recent regulatory decisions would be most vulnerable in a post-Chevron world?
It is complicated to know because it has to be a question about a statute, a question about a statute that a court finds ambiguous, right? That’s where Chevron would have helped. And I think it depends on what court you’re in. If you’re in the Fifth Circuit, there’s a good chance — I mean, they’ve just stopped using Chevron, period.
Is there a world in which courts develop more subject matter expertise as a result of being forced to decide on questions of statutory interpretation?
Over the years people have offered the possibility of science courts or environmental courts — specialized courts where adjudicators have expertise. That’s never really taken off — never really at all taken off. Certainly the D.C. Circuit judges handle administrative cases all the time. Cases go exclusively to them, and I think the judges do develop some expertise. But it doesn’t turn them into ecologists or engineers. And the thing is that the structure of a judicial chambers is both tiny and insular: you have one judge; on the Supreme Court four clerks, but elsewhere two to three. It’s just not that much. Whereas EPA, they have teams of people on these rules from all over the agency, and then the rule gets reviewed by others.
We’re obviously focused on climate-related regulations, but is there an area of policy that you think will be most vulnerable immediately without Chevron?
The hallmarks of where Chevron has been really important: complicated statutes; technical and/or scientific subject matter; places where the language is either vague or just broad enough, it’s not clear how to fill it in. That’s environmental law, but there’s a lot of other law that’s also … I mean, it’s just OSHA, FDA, the FTC. Looking for those signature traits, that’s going to be a place where it pinches particularly hard. I think the agencies now are sort of bracing for this, but they still have a lot of rules in the works, and this is going to come down in the middle of that in election year.
Chevron started with Reagan wanting to change the way the EPA interpreted its mandate. Would removing it potentially make things more difficult for an incoming Trump administration?
I mean, it should. Chevron was supposed to work that way. But certainly the major questions doctrine, at least as it’s been practiced, so far cuts only against ambitious regulation. It doesn’t cut in favor of it.
The thing that worries me is the anti-regulatory skew that’s in some of the court’s other recent rulings. So for example, in West Virginia itself, the Supreme Court struck down Obama’s Clean Power Plan but upheld — without even explaining why — Trump’s plan. They were the same question under the same statute with the same evidence, the same costs and benefits. Everything was the same except for the direction. If one was a major question, the other should have been a major question. And so if you want to put it in the terms of these two possible administrations, they will go after Biden rules more than they’ll go after Trump rules, at least on the major questions idea.
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The battery recycling company announced a $425 million Series E round after pivoting to power data centers.
Amidst a two year-long slump in lithium prices, the Nevada-based battery recycling company Redwood Materials announced last summer that it had begun a new venture focused on grid-scale energy storage. Today, it’s clear just how much that bet has paid off.
The company announced a $425 million round of Series E funding for the new venture, known as Redwood Energy. That came from some big names in artificial intelligence, including Google and Nvidia’s venture capital arm, NVentures. This marks the final close of the funding round, increasing the total from $350 million announced in October.
Redwood Energy adapts the company’s original mission — breaking down spent batteries to recover, refine, and resell critical minerals — to suit the data center revolution. Instead of merely extracting battery materials, the company can now also repurpose electric vehicle batteries that still have some life left in them as energy storage solutions for AI data centers, allowing Redwood to get value from the battery throughout its lifecycle.
“Regardless of where lithium prices are, if we can put [a lithium-ion battery] in a large-scale energy storage system, it can have a lot more value before we break it down into critical materials,” Claire McConnell, Redwood’s new VP of business development for energy storage, told me.
Over the past 12 to 18 months, she explained that the company had started to receive more and more used electric vehicle battery packs “in better condition than we initially anticipated.” Given the substantial electricity load growth underway, McConnell said the company saw it as “perfect moment” to “develop something that could be really unique for that market.”
At the time of Redwood Energy’s launch last June, the company announced that it had stockpiled over a gigawatt-hour of used EV batteries, with an additional 5 gigawatt-hours expected over the following year. Its first microgrid pilot is already live and generating revenue in Sparks, Nevada, operating in partnership with the data center owner and operator Crusoe Energy. That project is off-grid, supplying solar-generated electricity directly to Crusoe’s data center. Future projects could be grid-connected though, storing energy when prices are low and dispatching it when there are spikes in demand.
The company also isn’t limiting itself to used battery packs, McConnell told me. Plenty of manufacturers, she said, are sitting on a surplus of new batteries that they’re willing to offload to Redwood. The potential reasons for that glut are easy to see: already-slower-than-expected EV adoption compounded by Trump’s rollback of incentives has left many automakers with lower than projected EV sales. And even in the best of times, automakers routinely retool their product lines, which could leave them with excess inventory from an older model.
While McConnell wouldn’t reveal what percent of packs are new, she did tell me they make up a “pretty meaningful percentage of our inventory right now,” pointing to a recently announced partnership with General Motors meant to accelerate deployment of both new and used battery packs for energy storage.
While Redwood isn’t abandoning its battery recycling roots, this shift in priorities toward data center energy storage comes after a tough few years for the battery recycling sector overall. By last June, lithium prices had fallen precipitously from their record highs in 2022, making mineral recycling far less competitive. Then came Trump’s cuts to consumer electric vehicle incentives, further weakening demand. On top of that, the rise of lithium-iron phosphate batteries — which now dominate the battery storage sector and are increasingly common in EVs — have reduced the need for nickel and cobalt in particular, as they’re not a part of this cheaper battery chemistry.
All this helped create the conditions for the bankruptcy of one of Redwood’s main competitors, Li-Cycle, in May 2025. The company went public via a SPAC merger in 2021, aiming to commercialize its proprietary technique for shredding whole lithium-ion battery packs at once. But it ultimately couldn’t secure the funds to finish building out its recycling hub in Rochester, New York, and it was acquired by the commodities trading and mining company Glencore last summer.
“We started really early, and in a way we started Redwood almost too early,” JB Straubel, Redwood’s founder and Tesla’s co-founder, told TechCrunch last summer. He was alluding to the fact that in 2017, when Redwood was founded, there just weren’t that many aging EVs on the road — nor are there yet today. So while an influx of used EV batteries is eventually expected, slower than anticipated EV adoption means there just may not be enough supply yet to sustain a company like Redwood on that business model alone.
In the meantime, Redwood has also worked to recycle and refine critical minerals from battery manufacturing scrap and used lithium-ion from consumer electronics. Partnerships with automakers such as Toyota, Volkswagen, and General Motors, as well as global battery manufacturer Panasonic, have helped bolster both its EV battery recycling business and new storage endeavor. The goal of building a domestic supply chain for battery materials such as lithium, nickel, cobalt, and copper also remains as bipartisan as ever, meaning Redwood certainly isn’t dropping the recycling and refining arm of its business, even as it shifts focus toward energy storage.
For instance, it’s also still working on the buildout of a recycling and battery component production facility in Charleston, South Carolina. While three years ago the company announced that this plant would eventually produce over 100 gigawatt-hours of cathode and anode battery components annually, operations on this front appear to be delayed. When Redwood announced that recycling and refining operations had begun in Charleston late last year, it made no mention of when battery component production would start up.
It’s possible that this could be taking a backburner to the company’s big plans to expand its storage business. While the initial Crusoe facility offers 63 megawatt-hours of battery energy storage, McConnell told me that Redwood is now working on projects “in the hundreds of megawatt-hours, looking to gigawatt-hour scale” that it hopes to announce soon.
The market potential is larger than any of us might realize. Over the next five or so years, McConnell said, “We expect that repurposed electric vehicle battery packs could make up 50% of the energy storage market.”
Fossil fuel companies colluded to stifle competition from clean energy, the state argues.
A new kind of climate lawsuit just dropped.
Last week the state of Michigan joined the parade of governments at all levels suing fossil fuel companies for climate change-related damages. But it’s testing a decidedly different strategy: Rather than allege that Big Oil deceived the public about the dangers of its products, Michigan is bringing an antitrust case, arguing that the industry worked as a cartel to stifle competition from non-fossil fuel resources.
Starting in the 1980s, the complaint says, ExxonMobil, Chevron, Shell, BP, and their trade association, the American Petroleum Institute, conspired “to delay the transition from fossil fuels to renewable energy” and “unlawfully colluded to reduce innovation” in Michigan’s transportation and energy markets. This, it alleges, is a key driver of Michigan’s (and the country’s) present-day struggles with energy affordability. If the companies had not suppressed renewable energy and electric vehicles, the argument goes, these technologies would have become competitive sooner and resulted in lower transportation and energy costs.
The framing may enable Michigan to sidestep some of the challenges other climate lawsuits have faced. Ten states have attempted to hold Big Oil accountable for climate impacts, mostly by arguing that the industry concealed the harms their products would cause. One suit filed by the City of New York has been dismissed, and many others have been delayed due to arguments over whether the proceedings belong in state or federal court, and haven’t yet gotten to the substance of the claims. Michigan’s tactic “maybe speeds up getting to the merits of the case,” Margaret Barry, a climate litigation fellow at Columbia University’s Sabin Center for Climate Change Law, told me, “because those jurisdictional issues aren’t going to be part of the court’s review.”
The fossil fuel industry’s primary defense in these suits has been that cities and states cannot fault oil companies for greenhouse gas emissions because regulating those emissions is the job of the federal government, per the Clean Air Act. Making the case about competition may “avoid arguments about whether this lawsuit is really about regulation,” Rachel Rothschild, an assistant professor of law at the University of Michigan, told me.
The biggest hurdle Michigan will face is proving the existence of a coordinated plot. Geoffrey Kozen, a partner at the law firm Robins Kaplan who works on antitrust cases, told me that companies in these kinds of suits tend to argue that they were simply reacting independently to the same market pressures and responding as any rational market actor would.
There are two main ways for a plaintiff to overcome that kind of argument, Kozen explained. In rare cases, there is a smoking gun — a memo that all of the parties signed saying they were going to act together, for example. More often, attorneys attempt to demonstrate a combination of “parallel conduct,” i.e., showing that all of the parties did the same thing, and “plus factors,” or layers of evidence that make it more likely that there was some kind of underlying agreement.
According to Michigan’s lawsuit, the collusion story in this case goes like this. In 1979, the American Petroleum Institute started a group called the CO2 and Climate Task Force. By that time, Exxon had come to understand that fossil fuel consumption was warming the planet and would cause devastation costing trillions of dollars. The company’s scientists had concluded that cleaner alternatives to fossil fuels would have to make up an increasing amount of the world’s energy if such effects were to be avoided.
“A self-interested and law-abiding rational firm would have used this insight to innovate and compete in the energy market by offering superior and cheaper energy products to consumers,” the complaint says. Michigan alleges that instead, Exxon shared its findings with the other companies in the task force and conspired with them to suppress clean alternatives to fossil fuels. They worked together to “synchronize assessments of climate risks, monitor each other’s scientific and industry outlooks, align their responses to competitive threats, and coordinate their efforts to suppress technologies likely to displace gasoline or other fossil fuels through collusion rather than competition,” according to the complaint.
Michigan’s lawyers point to evidence showing that the named companies shut down internal research programs, withheld products from the market, and used their control of patents to stifle progress away from fossil fuels. The companies were all early leaders in developing clean technologies — with innovations in rechargeable batteries, hybrid cars, and solar panels — but began to sabotage or abandon those efforts after the formation of the task force, the lawsuit alleges.
The case will likely turn on whether the judge finds it credible that these actions would have been against the companies’ self-interest had they not known their peers would be doing the same thing, Kozen told me.
“The actions differ between defendants. They are over a wide range of time periods. And so the question is, is that pursuant to an actual agreement? Or is it pursuant to a bunch of oil executives who are all thinking in similar ways?” he said. “I think that’s going to be the number one point where success or failure is probably going to tip.”
Another challenge for Michigan will be to prove what the world would have looked like had this collusion not taken place. In the parlance of antitrust, this is known as the “but-for world.” Without the Big Oil conspiracy, the lawsuit says, electric vehicles would be “a common sight in every neighborhood,” there would be ubiquitous “reliable and fast chargers,” and renewable energy would be “supplied at scale.” It argues that economic models show that Michigan’s energy prices would also have been significantly lower. While such arguments are common in antitrust cases, it’s a lot more difficult to quantify the effects of stifled innovation than something more straightforward like price fixing.
The companies, of course, reject Michigan’s narrative. A spokeswoman for Exxon told the New York Times it was “yet another legally incoherent effort to regulate by lawsuit.”
If the state can gather enough plausible evidence of harm, however, it may be able to get past the companies’ inevitable motion to dismiss the case and on to discovery. While the case is built on heaps of internal emails and leaked memos that have been made public over the years through congressional investigations, who knows how much of the story has yet to be revealed.
“It’s, in my experience, almost impossible, if someone is actually a member of a cartel, to hide all the evidence,” said Kozen. “Whatever it is, it always comes out.”
Current conditions: Temperatures as low as 30 degrees Fahrenheit below average are expected to persist for at least another week throughout the Northeast, including in New York City • Midsummer heat is driving temperatures up near 100 degrees in Paraguay • Antarctica is facing intense katabatic winds that pull cold air from high altitudes to lower ones.

The United States has, once again, exited the Paris Agreement, the first global carbon-cutting pact to include the world’s two top emitters. President Donald Trump initiated the withdrawal on his first day back in office last year — unlike the last time Trump quit the Paris accords, after a prolonged will-he-won’t-he game in 2017. That process took three years to complete, allowing newly installed President Joe Biden to rejoin in 2021 after just a brief lapse. This time, the process took only a year to wrap up, meaning the U.S. will remain outside the pact for years at least. “Trump is making unilateral decisions to remove the United States from any meaningful global climate action,” Katie Harris, the vice president of federal affairs at the union-affiliated BlueGreen Alliance, said in a statement. “His personal vendetta against clean energy and climate action will hurt workers and our environment.” Now, as Heatmap’s Katie Brigham wrote last year, at “all Paris-related meetings (which comprise much of the conference), the U.S. would have to attend as an ‘observer’ with no decision-making power, the same category as lobbyists.”
America has not yet completed its withdrawal from the United Nations Framework Convention on Climate Change, the overarching group through which the Paris Agreement was negotiated, which Trump initiated this month. That won’t be final until next year. That Trump is even planning to quit the body shows how much more aggressive the administration’s approach to climate policy is this time around. Trump remained within the UNFCCC during his first term, preferring to stay engaged in negotiations even after quitting the Paris Agreement.
Just weeks after a federal judge struck down the Trump administration’s stop work order on the Revolution Wind project off Rhode Island’s shores, another federal judge has overturned the order halting construction on the Vineyard Wind project off Massachusetts. That, as Heatmap’s Emily Pontecorvo wrote last night, “makes four offshore wind farms that have now won preliminary injunctions against Trump’s freeze on the industry.” Besides Revolution Wind, Dominion Energy’s Coastal Virginia offshore wind project and Equinor’s Empire Wind plant off Long Island have each prevailed in their challenges to the administration’s blanket order to abandon construction on dubious national security grounds.
Meanwhile, the White House is potentially starving another major infrastructure project of funding. The Gateway rail project to build a new tunnel under the Hudson River between New Jersey and New York City could run out of money and halt construction by the end of next week, the project manager warned Tuesday. Washington had promised billions to get the project done, but the money stopped flowing in October during the government shutdown. Officials at the Department of Transportation said the funding would remain suspended until, as The New York Times reported, the project’s contracts could be reviewed for compliance with new rules about businesses owned by women and minorities.
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A new transmission line connecting New England’s power-starved and gas-addicted grid to Quebec’s carbon-free hydroelectric system just came online this month. But electricity abruptly stopped flowing onto the New England Clean Energy Connect as the Canadian province’s state-owned utility, Hydro-Quebec, withheld power to meet skyrocketing demand at home amid the Arctic chill. Power plant owners in New England and New York, where Hydro-Quebec is building another line down the Hudson River to connect to New York City, complained that deals with the utility focused on maintaining supplies during the summer, when air conditioning traditionally surges power to peak demand. Hydro-Quebec restored power to the line on Monday.
The storm represented a force majeure event. If it hadn’t, the utility would have needed to pay penalties. But the incident is sure to fuel more criticism from power plant owners, most of which are fossil fueled, who oppose increased competition from the Quebecois. “I hate to say it, but a lot of the issues and concerns that we have been talking about for years have played out this weekend,” Dan Dolan — who leads the New England Power Generators Association, a trade group representing power plant owners — told E&E News. “This is a very expensive contract for a product that predominantly comes in non-stressed periods in the winter,” he said.
Europe has signed what the European Commission president Urusula von der Leyen called “the mother of all deals” with India, “a free trade zone of 2 billion people.” As part of the deal, the world’s second-largest market and the most populous nation plan to ramp up exports of steel, plastics, chemicals, and pharmaceuticals. But don’t expect Brussels to give New Delhi a break on its growing share of the global emissions. The EU’s carbon border adjustment mechanism — the first major tariff in the world based on the carbon intensity of imports — just took effect this month, and will remain intact for Indian goods, Reuters reported.
The Department of the Interior has ordered staff at the National Park Service to remove or edit signs and other informational materials in at least 17 parks out West to scrub mentions of climate change or hardship inflicted by settlers on Native Americans. The effort comes as part of what The Washington Post called a renewed push to implement Trump’s executive order on “restoring truth and sanity to American history.” Park staff have interpreted those orders, the newspaper reported, to mean eliminating any reference to historic racism, sexism, LGBTQ rights, and climate change. Just last week, officials removed an exhibit at Independence National Historical Park on George Washington’s ownership of slaves.
Tesla is going trucking. The electric automaker inked a deal Tuesday with Pilot Travel Centers, the nation’s largest operator of highway pit stops, to install Tesla’s Semi Chargers for heavy-duty electric vehicle charging. The stations are set to be built at select Pilot locations along Interstate 5, Interstate 10, and several other major corridors where heavy-duty charging is highest. The first sites are scheduled to open this summer.