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“The only common thread is the seeming desire of the court to aggrandize the power of the courts.”

The word “consequential” barely touches the importance of the Supreme Court’s decisions this term, as two cases — Loper Bright Enterprises v. Raimondo and Corner Post, Inc. v. Board of Governors — took a wrecking ball to the stability of the administrative state. Courts will no longer give deference to regulators to interpret statute and will permit new challenges against existing rules. Essentially, depending on whom you ask, anything goes.
So naturally, we had to ask. While the legal universe is still digesting these rulings, climate and environmental law experts had plenty of opinions about them, as lawyers tend to do. Here’s what we heard:
The Supreme Court has been on a campaign to weaken environmental regulation. In 2016, it halted implementation of President Obama’s Clean Power Plan without explanation. In 2022, it issued the devastating opinion in West Virginia v. Environmental Protection Agency, finding that the EPA couldn’t go very far in using the Clean Air Act to fight climate change because the statute isn’t specific enough. In 2023, the court in Sackett v. EPA greatly reduced the coverage of the Clean Water Act.
That campaign intensified this year. On June 27, 2024, in Ohio v. EPA, it struck down a life-saving Clean Air Act rule based on exceedingly narrow technical grounds that Justice Amy Coney Barrett, in her dissent, found were completely off base. The same day, in SEC v. Jarkesy, the Court said that agencies could not use long-established administrative processes to impose certain kinds of penalties. On June 28, the court reversed the Chevron doctrine in Loper Bright Enterprises v. Raimondo. On July 1, in Corner Post, Inc. v. Board of Governors, it said that corporate defendants can challenge federal regulations long past the usual statute of limitations. And this campaign may continue: on June 24 the Supreme Court agreed to hear Seven County Infrastructure Coalition v. Eagle County, which may shrink the coverage of the National Environmental Policy Act.
The next election will determine whether the 6-3 conservative majority may be enlarged and rejuvenated to last another generation, or — depending on the fates — may shrink or be reversed.
For good reason, the last day of the Supreme Court’s term will be known for its decision giving presidents incredibly broad immunity from criminal prosecution. But another decision that will play a major role in restricting the ability of the executive branch to protect the environment should not be neglected. Corner Post effectively eliminated what had been a six-year statute of limitations for challenging federal regulations. The impact of Corner Post will amplify the effect of last week’s opinion overturning the Chevron decision, which had held that the judiciary should defer to reasonable legal interpretations made by the executive branch.
The Court announcing that it will take a much more aggressive role in replacing the judgment of regulatory experts in the executive branch with their own judgments will have particularly dire consequences for environmental regulations. What they see as “excessive” environmental regulation is one of the central reasons why conservative legal activists wanted the Chevron doctrine overruled. It’s not a coincidence that last week, the court also prevented a federal regulation of air pollutants from going into effect, one of a long series of Roberts court rulings undermining environmental regulation. And in a darkly comic illustration of what a bad idea it is to replace the judgment of EPA experts with that of arrogant, power-hungry judges, in his opinion for the court, Justice Gorsuch confused “nitrous oxide” (commonly known as “laughing gas”) and “nitrogen oxides” (the pollutant the EPA sought to regulate.)
People who want to stop environmental regulation will not be laughing when considering the effects of this Supreme Court term. Conservative lawyers will aggressively forum-shop for judges hostile to environmental regulations to bring challenges even to long-settled rules, and the authority of the EPA will be under constant threat as the planet continues to warm.
The combined effect of the Corner Post and Loper decisions may not be immediate, but they will be profound. They will make it harder for agencies to do their work, and easier for challengers (especially very well-funded challengers) to attack and delay actions.
The two opinions are hard to reconcile. In Loper, the opinion cites Chevron as "fostering unwarranted instability" in the law, but in Corner Post, the court has added extreme instability by leaving open-ended the question of when a regulation is ever settled. The only common thread is the seeming desire of the court to aggrandize the power of the courts.
Specific to climate, notwithstanding the statement in the opinion that Loper does not reopen prior holdings that used the Chevron framework, it is hard to imagine that such challenges will not be forthcoming. In particular, opponents of the finding in Massachusetts v. EPA may see Loper and Corner Post as an opportunity to reopen that 2007 case, especially as the court seems quite ready and willing to overturn past precedents.
Finally, we have examples of how pre- Chevron litigation worked under the Clean Air Act — and these examples should give as much pause to conservatives as to progressives. Courts are not likely to function well as regulatory agencies. The original Chevron decision was favored by conservatives at the time; post-Chevron, conservatives may regret that they got what they asked for.
The Supreme Court’s rulings this session jeopardize critical environmental protections and climate progress and are likely to wreak chaos across the regulatory landscape. In Corner Post the Supreme Court upended the statute of limitations for challenging many government regulations, opening the door to hundreds of new corporate challenges to long-established protections we all take for granted. And in Loper Bright, the court displaced the long-standing Chevron doctrine by shifting power to judges and sidelining the expertise of agency staff who live and breathe the science and safety concerns that federal agencies specialize in.
In combination, the cases tip the balance of power away from everyday Americans that depend on commonsense protections to industry groups that believe they will financially benefit without any limitations in place. We’re ready to fight back to make sure this conservative supermajority doesn't leave us with a patchwork of inconsistent rulings and an annihilation of the regulatory structure and critical protections that keep us safe and healthy.
The Supreme Court's decisions, in combination, make it clear that the Court intends to insert itself as, in Justice Kagan's words, the country's “administrative czar.” Those decisions give courts control over a wide array of scientific, technical, and policy choices necessary to effectively implement our laws protecting clean air, clean water, and affordable and reliable energy (and much more). That is likely to prove corrosive to climate policy; judges lack the accountability, expertise, and experience of agencies like the EPA or the Department of Energy.
But the primary drivers of decarbonization — economics and public investments to accelerate the clean energy transition, like the Inflation Reduction Act — remain relatively insulated from judicial interference. So while the court's decisions make the likely pathway to decarbonization less steady, science-driven, and predictable, it should not derail our ongoing progress towards achieving our climate goals over the long term.
Undoubtedly, the Supreme Court’s decisions in Corner Post and Loper Bright will make it easier for plaintiffs to prevail in legal challenges to environmental regulations. But we should be careful to keep things in perspective. The end of Chevron deference means that agency interpretations of statutes will get more judicial scrutiny than they did before, but even under Chevron deference it was limited by such things as the major questions doctrine. Agency interpretations are still likely to prevail in many cases. Similarly, while the changes to when the statute of limitations begins to run will allow additional challenges to be brought, a regulation that has already survived earlier legal challenges is likely to be upheld again if challenged by a new plaintiff later on. Agencies like EPA or the Federal Energy Regulatory Commission do not need to be insulated from judicial review in order to be able to function. If they do, that suggests a deeper problem with the administrative state.
In its regulatory jurisprudence this term, the Supreme Court has fundamentally changed the playing field for environmental regulation, making it much more difficult for agencies to use the flexibility that Congress has attempted to provide to protect the environment. This is likely to be felt especially where agencies are trying to tackle new problems using older statutes. The ball is now in Congress's court to protect the American people by regularly improving the nation's environmental laws, ensuring that federal regulatory programs that prevent pollution and preserve our country's natural resources for future generations are not lost forever over legal technicalities.
Taken together, Corner Post and Loper Bright fire the starting gun for an onslaught of lawsuits challenging long-settled regulatory programs. (They also sound the dinner bell for amoral corporate law firms.)
Judicial conservatives have long proclaimed the need for judicial minimalism and caution. Judges, they say, are not elected, and have no business making policy from the bench. They should decide individual cases and focus on the facts in front of them to avoid ripple effects that they can’t foresee and can’t easily fix.
This conservative supermajority is instead heedlessly pursuing a political agenda. By rewriting settled precedents to pursue a holy war against federal regulations, the court is truly legislating from the bench. And in justifying all this by citing idiosyncratic views of the separation of powers, the court is practically holding a new constitutional convention behind closed doors.
The Supreme Court has made it clear that legal precedents and the plain language of statutes will not slow their crusade to destroy the modern regulatory state at the behest of their wealthy benefactors. Justice Ketanji Brown Jackson got it right in her dissent in Corner Post: “At the end of a momentous Term, this much is clear: The tsunami of lawsuits against agencies that the Court's holdings in this case and Loper Bright have authorized has the potential to devastate the functioning of the Federal Government.”
This tsunami of lawsuits will result in less consistent statutory interpretations based on individual courts' views on government regulation generally and on the matter at hand. The court's power grab lays bare the importance of civil society and elected officials finding ways to rebalance the relationships between the three branches of government and supporting the ability of federal agencies to implement federal laws effectively.
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The fourth-generation gas-cooled reactor company ZettaJoule is setting up shop at an unnamed university.
The appeal of next-generation nuclear technology is simple. Unlike the vast majority of existing reactors that use water, so-called fourth-generation units use coolants such as molten salt, liquid metal, or gases that can withstand intense heat such as helium. That allows the machines to reach and maintain the high temperatures necessary to decarbonize industrial processes, which currently only fossil fuels are able to reach.
But the execution requirements of these advanced reactors are complex, making skepticism easy to understand. While the U.S., Germany, and other countries experimented with fourth-generation reactors in earlier decades, there is only one commercial unit in operation today. That’s in China, arguably the leader in advanced nuclear, which hooked up a demonstration model of a high-temperature gas-cooled reactor to its grid two years ago, and just approved building another project in September.
Then there’s Japan, which has been operating its own high-temperature gas-cooled reactor for 27 years at a government research site in Ibaraki Prefecture, about 90 minutes north of Tokyo by train. Unlike China’s design, it’s not a commercial power reactor. Also unlike China’s design, it’s coming to America.
Heatmap has learned that ZettaJoule, an American-Japanese startup led by engineers who worked on that reactor, is now coming out of stealth and laying plans to build its first plant in Texas.
For months, the company has quietly staffed up its team of American and Japanese executives, including a former U.S. Nuclear Regulatory Commission official and a high-ranking ex-administrator from the industrial giant Mitsubishi. It’s now preparing to decamp from its initial home base in Rockville, Maryland, to the Lone Star State as it prepares to announce its debut project at an as-yet-unnamed university in Texas.
“We haven’t built a nuclear reactor in many, many decades, so you have only a handful of people who experienced the full cycle from design to operations,” Mitsuo Shimofuji, ZettaJoule’s chief executive, told me. “We need to complete this before they retire.”
That’s where the company sees its advantage over rivals in the race to build the West’s first commercial high-temperature gas reactor, such as Amazon-backed X-energy or Canada’s StarCore nuclear. ZettaJoule’s chief nuclear office, Kazuhiko Kunitomi, oversaw the construction of Japan’s research reactor in the 1990s. He’s considered Japan’s leading expert in high-temperature gas reactors.
“Our chief nuclear officer and some of our engineers are the only people in the Western world who have experience of the whole cycle from design to construction to operation of a high temperature gas reactor,” Shimofuji said.
Like X-energy’s reactor, ZettaJoule’s design is a small modular reactor. With a capacity of 30 megawatts of thermal output and 12 megawatts of electricity, the ZettaJoule reactor qualifies as a microreactor, a subcategory of SMR that includes anything 20 megawatts of electricity or less. Both companies’ reactors will also run on TRISO, a special kind of enriched uranium with cladding on each pellet that makes the fuel safer and more efficient at higher temperatures.
While X-energy’s debut project that Amazon is financing in Washington State is a nearly 1-gigawatt power station made up of at least a dozen of the American startup’s 80-megawatt reactors, ZettaJoule isn’t looking to generate electricity.
The first new reactor in Texas will be a research reactor, but the company’s focus is on producing heat. The reactor already working in Japan, which produces heat, demonstrates that the design can reach 950 degrees Celsius, roughly 25% higher than the operating temperature of China’s reactor.
The potential for use in industrial applications has begun to attract corporate partners. In a letter sent Monday to Ted Garrish, the U.S. assistant secretary of energy in charge of nuclear power — a copy of which I obtained — the U.S. subsidiary of the Saudi Arabian oil goliath Aramco urged the Trump administration to support ZettaJoule, and said that it would “consider their application to our operations” as the technology matures. ZettaJoule is in talks with at least two other multinational corporations.
The first new reactor ZettaJoule builds won’t be identical to the unit in Japan, Shimofuji said.
“We are going to modernize this reactor together with the Japanese and U.S. engineering partners,” he said. “The research reactor is robust and solid, but it’s over-engineered. What we want to do is use the safety basis but to make it more economic and competitive.”
Once ZettaJoule proves its ability to build and operate a new unit in Texas, the company will start exporting the technology back to Japan. The microreactor will be its first product line.
“But in the future, we can scale up to 20 times bigger,” Shimofuji said. “We can do 600 megawatts thermal and 300 megawatts electric.”
Another benefit ZettaJoule can tap into is the sweeping deal President Donald Trump brokered with Japanese Prime Minister Sanae Takaichi in October, which included hundreds of billions of dollars for new reactors of varying sizes, including the large-scale Westinghouse AP1000. That included financing to build GE Vernova Hitachi Nuclear Energy’s 300-megawatt BWRX-300, one of the West’s leading third-generation SMRs, which uses a traditional water-cooled design.
Unlike that unit, however, ZettaJoule’s micro-reactor is not a first-of-a-kind technology, said Chris Gadomski, the lead nuclear analyst at the consultancy BloombergNEF.
“It’s operated in Japan for a long, long time,” he told me. “So that second-of-a-kind is an attractive feature. Some of these companies have never operated a reactor. This one has done that.”
A similar dynamic almost played out with large-scale reactors more than two decades ago. In the late 1990s, Japanese developers built four of GE and Hitachi’s ABWR reactor, a large-scale unit with some of the key safety features that make the AP1000 stand out compared to its first- and second-generation predecessors. In the mid 2000s, the U.S. certified the design and planned to build a pair in South Texas. But the project never materialized, and America instead put its resources into Westinghouse’s design.
But the market is different today. Electricity demand is surging in the near term from data centers and in the long term from electrification of cars and industry. The need to curb fossil fuel consumption in the face of worsening climate change is more widely accepted than ever. And China’s growing dominance over nuclear energy has rattled officials from Tokyo to Washington.
“We need to deploy this as soon as possible to not lose the experienced people in Japan and the U.S.,” Shimofuji said. “In two or three years time, we will get a construction permit ideally. We are targeting the early 2030s.”
If every company publicly holding itself to that timeline is successful, the nuclear industry will be a crowded field. But as history shows, those with the experience to actually take a reactor from paper to concrete may have an advantage.
It’s now clear that 2026 will be big for American energy, but it’s going to be incredibly tense.
Over the past 365 days, we at The Fight have closely monitored numerous conflicts over siting and permitting for renewable energy and battery storage projects. As we’ve done so, the data center boom has come into full view, igniting a tinderbox of resentment over land use, local governance and, well, lots more. The future of the U.S. economy and the energy grid may well ride on the outcomes of the very same city council and board of commissioners meetings I’ve been reporting on every day. It’s a scary yet exciting prospect.
To bring us into the new year, I wanted to try something a little different. Readers ask me all the time for advice with questions like, What should I be thinking about right now? And, How do I get this community to support my project? Or my favorite: When will people finally just shut up and let us build things? To try and answer these questions and more, I wanted to give you the top five trends in energy development (and data centers) I’ll be watching next year.
The best thing going for American renewable energy right now is the AI data center boom. But the backlash against developing these projects is spreading incredibly fast.
Do you remember last week when I told you about a national environmental group calling for data center moratoria across the country? On Wednesday, Senator Bernie Sanders called for a nationwide halt to data center construction until regulations are put in place. The next day, the Working Families Party – a progressive third party that fields candidates all over the country for all levels of government – called for its candidates to run in opposition to new data center construction.
On the other end of the political spectrum, major figures in the American right wing have become AI skeptics critical of the nascent data center buildout, including Florida Governor Ron DeSantis, Missouri Senator Josh Hawley, and former Trump adviser Steve Bannon. These figures are clearly following the signals amidst the noise; I have watched in recent months as anti-data center fervor has spread across Facebook, with local community pages and groups once focused on solar and wind projects pivoting instead to focus on data centers in development near them.
In other words, I predicted just one month ago, an anti-data center political movement is forming across the country and quickly gaining steam (ironically aided by the internet and algorithms powered by server farms).
I often hear from the clean energy sector that the data center boom will be a boon for new projects. Renewable energy is the fastest to scale and construct, the thinking goes, and therefore will be the quickest, easiest, and most cost effective way to meet the projected spike in energy demand.
I’m not convinced yet that this line of thinking is correct. But I’m definitely sure that no matter the fuel type, we can expect a lot more transmission development, and nothing sparks a land use fight more easily than new wires.
Past is prologue here. One must look no further than the years-long fight over the Piedmont Reliability Project, a proposed line that would connect a nuclear power plant in Pennsylvania to data centers in Virginia by crossing a large swathe of Maryland agricultural land. I’ve been covering it closely since we put the project in our inaugural list of the most at-risk projects, and the conflict is now a clear blueprint.
In Wisconsin, a billion-dollar transmission project is proving this thesis true. I highly recommend readers pay close attention to Port Washington, where the release of fresh transmission line routes for a massive new data center this week has aided an effort to recall the city’s mayor for supporting the project. And this isn’t even an interstate project like Piedmont.
While I may not be sure of the renewable energy sector’s longer-term benefits from data center development, I’m far more confident that this Big Tech land use backlash is hitting projects right now.
The short-term issue for renewables developers is that opponents of data centers use arguments and tactics similar to those deployed by anti-solar and anti-wind advocates. Everyone fighting data centers is talking about ending development on farmland, avoiding changes to property values, stopping excess noise and water use, and halting irreparable changes to their ways of life.
Only one factor distinguishes data center fights from renewable energy fights: building the former potentially raises energy bills, while the latter will lower energy costs.
I do fear that as data center fights intensify nationwide, communities will not ban or hyper-regulate the server farms in particular, but rather will pass general bans that also block the energy projects that could potentially power them. Rural counties are already enacting moratoria on solar and wind in tandem with data centers – this is not new. But the problem will worsen as conflicts spread, and it will be incumbent upon the myriad environmentalists boosting data center opponents to not accidentally aid those fighting zero-carbon energy.
This week, the Bureau of Land Management approved its first solar project in months: the Libra facility in Nevada. When this happened, I received a flood of enthusiastic and optimistic emails and texts from sources.
We do not yet know whether the Libra approval is a signal of a thaw inside the Trump administration. The Interior Department’s freeze on renewables permitting decisions continues mostly unabated, and I have seen nothing to indicate that more decisions like this are coming down the pike. What we do know is that ahead of a difficult midterm election, the Trump administration faces outsized pressure to do more to address “affordability,” Democrats plan to go after Republicans for effectively repealing the Inflation Reduction Act and halting permits for solar and wind projects, and there’s a grand bargain to be made in Congress over permitting reform that rides on an end to the permitting freeze.
I anticipate that ahead of the election and further permitting talks in Congress, the Trump administration will mildly ease its chokehold on solar and wind permits because that is the most logical option in front of them. I do not think this will change the circumstances for more than a small handful of projects sited on federal lands that were already deep in the permitting process when Trump took power.
It’s impossible to conclude a conversation about next year’s project fights without ending on the theme that defined 2025: battery fire fears are ablaze, and they’ll only intensify as data centers demand excess energy storage capacity.
The January Moss Landing fire incident was a defining moment for an energy sector struggling to grapple with the effects of the Internet age. Despite bearing little resemblance to the litany of BESS proposals across the country, that one hunk of burning battery wreckage in California inspired countless communities nationwide to ban new battery storage outright.
There is no sign this trend will end any time soon. I expect data centers to only accelerate these concerns, as these facilities can also catch fire in ways that are challenging to address.
Plus a resolution for Vineyard Wind and more of the week’s big renewables fights.
1. Hopkins County, Texas – A Dallas-area data center fight pitting developer Vistra against Texas attorney general Ken Paxton has exploded into a full-blown political controversy as the power company now argues the project’s developer had an improper romance with a city official for the host community.
2. La Plata County, Colorado – This county has just voted to extend its moratorium on battery energy storage facilities over fire fears.
3. Dane County, Wisconsin – The city of Madison appears poised to ban data centers for at least a year.
4. Goodhue County, Minnesota – The Minnesota Center for Environmental Advocacy, a large environmentalist organization in the state, is suing to block a data center project in the small city of Pine Island.
5. Hall County, Georgia – A data center has been stopped down South, at least for now.
6. Dukes County, Massachusetts – The fight between Vineyard Wind and the town of Nantucket seems to be over.