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The Environmental Protection Agency just unveiled its argument against regulating greenhouse emissions from power plants.

In federal policymaking, the weight of the law can rest on a single word. When it comes to reducing planet-warming emissions from the power sector, that word is “significantly.” The Clean Air Act requires the Environmental Protection Agency to regulate any stationary source of emissions that “causes, or contributes significantly to, air pollution which may reasonably be anticipated to endanger public health or welfare.”
The EPA has considered power plants a significant source of dangerous greenhouse gases since 2015. But today, Trump’s EPA said, actually, never mind.
A proposed rule published in the Federal Register on Wednesday argues that U.S. fossil fuel-fired power plants make up “a small and decreasing part of global emissions” and therefore are not significant, and do not require regulation under the law. The rule would repeal all greenhouse gas emission standards for new and existing power plants — both the standards the Biden administration finalized last year, which have been tied up in court, as well as the standards that preceded them, which were enacted by Obama in 2015.
In a separate proposal, the EPA also took steps to repeal limits on mercury and hazardous air pollutants from coal plants that were enacted last year, reverting the standard back to one set in 2012.
The argument that U.S. power plants make up a small sliver of global emissions and thus aren’t worth addressing is like having “a five-alarm fire that could be put out if you send out all the trucks, and you don’t send any of the trucks because no one truck could put the fire out by itself,” David Doniger, a senior attorney and strategist at the Natural Resources Defense Council, told me. “We just think that is a wacky reversal and a wacky interpretation of the Clean Air Act.”
When you add up every plug, power button, and light switch across the country, electricity usage produces 25% of U.S. greenhouse gas emissions each year. Over the past 30 years, American power plants have contributed about 5% of the total climate pollution spewed into the atmosphere worldwide.
In the global context, that may sound small. But in a recent report titled “The Scale of Significance," New York University’s Institute for Policy Integrity estimated that if U.S. power plants were a country, it would be the sixth biggest emitter in the world, behind China, the European Union, India, Russia, and the remainder of U.S. emissions. The report also notes that U.S. actions on emissions make other countries more likely to follow, due to technological spillovers that reduce the cost of decarbonization globally.
In addition to the significance finding, the EPA gave two other reasons for repealing the power plant rules. It argued that “cost-effective control measures are not reasonably available,” meaning there’s no economic way to reduce emissions at the source. It also said the new administration’s priority “is to promote the public health or welfare through energy dominance and independence secured by using fossil fuels to generate power.”
The first argument is an attempt to say that Biden’s standards flouted the law. In 2022, the Supreme Court ruled that the EPA could not simply tell states to reduce emissions from the power sector, which is what the Obama administration had initially tried to do. Instead, the agency would have to develop standards that could be applied on a plant-by-plant basis — so long as those rules were “cost-reasonable” and “adequately demonstrated.”
To comply with that ruling, Biden’s EPA based its standards on the potential to install carbon capture technology that can reduce flue gas emissions by 90%. The regulations would have required existing coal plants to install carbon capture by 2039, or else shut down. (To the chagrin of many energy system observers, the administration chose not to apply limits to existing gas-fired power plants.) But while fossil fuel companies and utilities had, in the past, asserted that carbon capture was viable, they deemed the standards impossible to meet.
Trump’s EPA is now agreeing. “In 2024,” Zeldin said on Wednesday, “rules were enacted seeking to suffocate our economy in order to protect the environment, to make all sorts of industries including coal and more disappear, regulate them out of existence.”
When Trump moved to overturn Obama’s power plant regulations during his first term, his EPA did not contest the significance of the sector’s emissions, and simply enacted a weaker standard. A week before he left office, the agency also finalized a rule that set the threshold for “significance” at 3% of U.S. emissions — which exempted major polluters like refineries, but still applied to power plants.
This time, Trump has a new apparent game plan: Strip the Clean Air Act of its jurisdiction over greenhouse gases altogether. Today’s action was the first step; EPA Administrator Lee Zeldin has said the agency will similarly “reconsider” emissions rules for cars and oil and gas drilling. But the cornerstone of the plan is to reverse what’s known as the “endangerment finding” — the 2009 conclusion that greenhouse gases present a threat to public health and welfare, and therefore are one of the pollutants EPA must address under the Clean Air Act.
“The Trump administration is trying to say, don’t worry about the Clean Air Act. It will never apply, so you can go back to your old ways,” said Doniger. But if the argument that power plant emissions are insignificant is a stretch, appraising greenhouse gas emissions as benign is inconceivable, he said. “The endangerment finding was based, in 2009, on a Denali-sized mountain of evidence. Since then, it’s grown to Everest-size, so there’s no way that they would be able to put together a rational record saying the science is wrong.”
These highly technical questions of whether emissions are “significant” or whether carbon capture is “adequately demonstrated” could soon be determined by a group of people who lack both the expertise to answer them and the inclination to wade through thousands of pages of atmospheric science and chemical engineering documents: judges.
Last year, the Supreme Court overturned a long-held precedent known as Chevron deference. That ruling means that the courts are no longer required to defer to an agency’s interpretation of statute — judges must make their own determinations of whether agencies are following the intent of the law.
When environmental groups begin challenging the EPA’s repeals in court, judges are “going to be bombarded with the need to make these highly technical, nuanced decisions,” Michael Wara, a lawyer and scholar focused on climate and energy policy at Stanford University, told me. He said the reason Chevron deference was established in the first place is that judges didn’t want to be making engineering decisions about power plants. “They felt extremely uncomfortable having to make these calls.”
The conservative Supreme Court overturned the precedent because of a sense that political decisions were being dressed up in scientific reasoning. But Wara doesn’t think the courts are going to like being put back into the role of weighing technical minutia and making engineering decisions.
“It’s a past that the courts didn’t like and they tried to engineer a way out of via the Chevron doctrine,” he said. “I would expect that we’re going to see a drift back toward a doctrine that looks a little bit more Chevron-like, maybe less deference to agencies. But it’s hard to predict in the current environment what’s going to happen.”
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Just as Americans have started to revolt against expensive cars.
The car bubble couldn’t last forever. For years now, the steadily rising cost of new vehicles has led American drivers to take on longer and longer car loans — six, seven, even eight years, as opposed to the four or five that used to be typical. The average new car sale in America crept up to nearly $50,000 in November, a seemingly unsustainable number for a country drowning in debt.
But as 2025 draws to a close, we’re seeing more signs that Americans are starting to change their behavior, according to the Wall Street Journal. With people keeping their old cars even longer and more shopping used, new car sales saw very little growth this year, and are projected to look flat again in 2026. Even the seemingly bulletproof full-size trucks that make up the backbone of the U.S. auto industry aren’t immune. Kelley Blue Book says the Ram 1500, which has had a lock on the number three spot in all U.S. auto sales behind the Ford F-150 and Chevrolet Silverado, is slated to drop out of the top three this year.
A bear market sounds especially bleak for electric vehicles. EVs, after all, have long suffered an affordability problem, and the Trump administration this fall killed off the federal tax break meant to make them more cost-competitive with fossil fuel vehicles. A country of cost-conscious drivers is even less likely to pay a premium for battery power.
Yet as a new year dawns, EVs in America might be better positioned than you think.
For one thing, this isn’t the EV market of a couple years ago. That reckoning for too-expensive pickup trucks? Electrics already went through it. Consider the Ford F-150 Lightning, which was quietly discontinued this month. The fully electric version of America’s best-selling vehicle was an amazing piece of technology, with breakthrough features like the ability to back up a home’s power supply with the truck battery. But the pickup cost a fortune because of how much battery it takes to make an EV truck do the kinds of things a gas-powered F-150 can do. The inflated price, along with many truck buyers’ reluctance to go EV for political and cultural reasons, led to disappointing sales and shattered any dreams of an easy electrification of America’s massive pickup truck market.
As a result, electric pickup trucks were already moving toward the smaller, more affordable end of the market even before the F-150 Lightning died. Ford’s maintains that its mission to fix its flailing EV division will start with a far more affordable $30,000 midsize pickup. One of the most anticipated electric models is the bare-bones Slate truck, which is slated (pun intended) to start in the mid $20,000s.
We’re also on the cusp of seeing more new EVs that are cost-competitive with gas-burners even without the big tax credits. I’ve repeatedly lauded Chevy for delivering a version of the Equinox EV at $35,000, which helped the vehicle become the third-best-selling electric in America (and top seller that’s not a Tesla). A variety of electric cars arriving in 2026 will come in close to the $30,000 mark or below, a group that includes Toyota’s battery-powered version of its C-HR small crossover and the promising revivals of both the Nissan Leaf and the Chevy Bolt.
No, we still don’t have the $25,000 EV that would compete directly with a Toyota Corolla. But there’s ample opportunity for electrics to compete at the budget end of the car market, with no economy car segment left to speak of. KBB notes that the car industry this year offered just five models that truly cost less than $25,000, all things considered, down from 36 such vehicles in 2017. The car companies went all-in on more expensive — and more lucrative — trucks and SUVs as Americans displayed a limitless hunger for them. Now that buyers are finally curbing that appetite, there is a window of opportunity for the new wave of economy-focused EVs.
That’s not to say the EV market is headed for smooth sailing. As Mack Hogan at InsideEVs has written, battery-powered cars still have a major problem with “uncompetitive” models. Beyond the familiar success stories — Tesla’s Model 3 and Model Y, the Ford Mustang Mach-E, Hyundai’s Ioniq 5, and a few others — the car market is littered with EVs that sell just a few hundred or thousand models per year, often because they simply don't measure up to their gas rivals on cost or performance. It’s hard to see how those vehicles find their place, especially when some of them still suffer from disappointing battery ranges and driving comfort that doesn’t measure up to their more polished petroleum-powered cousins.
Still, there’s reason for hope that some of the affordable electrics will find their footing among penny-counting drivers, especially as more of them are enticed by the potential of saying goodbye to pumping gas and paying for oil changes. Because they started out expensive, EVs have yet to be seen as economy cars — in the United States, at least. But with more affordable models arriving just as the car market starts to creak, that could soon change.
On permitting reform passing, Oklo’s Swedish bet, and GM’s heir apparent
Current conditions: New Orleans is expecting light rain with temperatures climbing near 90 degrees Fahrenheit as the city marks the 20th anniversary of Hurricane Katrina • Torrential rains could dump anywhere from 8 to 12 inches on the Mississippi Valley and the Ozarks • Japan is sweltering in temperatures as high as 104 degrees.
In a Mad Libs of a merger story, President Donald Trump’s social media company inked a $6 billion deal Thursday to combine with fusion energy company TAE Technologies in a bid to start construction on “the world’s first utility-scale fusion power plant” next year. It’s a lofty claim, to put it minimally. Once the darling of private fusion investors, TAE has since fallen behind rivals pursuing technological approaches that are considered easier and better studied, such as Commonwealth Fusion Systems. A key difference between the two technologies is the fuel. While TAE's deuterium-fueled reactor has to get as hot as 1 billion degrees Celsius, Commonwealth Fusion’s tritium-deuterium fuel needs to reach only — I almost want to put “only” in quotes since we’re talking about a temperature nearly seven times hotter than the center of the sun — 100 million degrees. The more than two dozen private fusion companies racing to build the first power plant aren’t just competing against each other. China, as I have written in this newsletter recently, is outspending the rest of the world combined on fusion investments.
But the all-stock deal between TAE and Trump Media and Technology Group, the parent company of Truth Social, could capture more money from retail investors eager to get in on the fusion game. After all, the next-generation nuclear fission industry has a growing stable of startups whose stocks generate billions of dollars but whose businesses have no revenue. The merger shows “both the Trump administration’s commitment and investor appetite for clean, scalable fusion energy,” Greg Piefer, the chief executive of the rival fusion company SHINE Technologies, wrote in a LinkedIn post. Still, he said his startup, which Heatmap’s Katie Brigham wrote recently is already generating revenue selling medical isotopes, will be able “to scale faster than any other fusion company.” That’s a diplomatic way of analyzing a deal involving the president. When I called up Chris Gadomski, the lead nuclear analyst at the consultancy BloombergNEF yesterday morning, he told me, “I’m just flabbergasted.”
The House voted 221-196 Thursday to pass the SPEED Act, a bipartisan permitting reform bill to overhaul the National Environmental Policy Act. Eleven Democrats supported the bill, and just one Republican voted no. But GOP lawmakers made last-minute changes to appease right-wing critics of offshore wind, causing some Democrats who planned to vote yes to defect, Politico reported. That provision will almost certainly make passage in the Senate a challenge. As Heatmap’s Jael Holzman reported last week, top Senate Democrats vowed to oppose the legislation unless the bill barred executive branch agencies from yanking already-granted permits, a move designed to halt the Trump administration’s assault on offshore wind. As our colleague Emily Pontecorvo wrote yesterday, passing the House was one thing, “but now comes the hard part.”
Easing federal environmental assessments isn’t the only approach to speeding up energy deployment. As our other colleague Matthew Zeitlin explained yesterday, the Federal Energy Regulatory Commission is pushing to make it easier to plug data centers directly into power plants.
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The Department of Energy’s independent watchdog is opening an investigation into the agency’s decision to cancel $8 billion in funding for clean energy projects in California and other Democratic-leaning states. The bulk of the projects, including a $1.2 billion regional hydrogen hub, were located in California, the Los Angeles Times noted. The audit by the Energy Department’s Office of the Inspector General came in response to a plea from nearly 30 California lawmakers raising concern that the states were illegally targeted “for their perceived lack of support for President Trump.”
At the same time, a coalition of cities, consumer advocates, and green groups sued the Internal Revenue Service on Thursday over new Treasury Department rules “that unfairly and illegally discriminate against wind and solar projects.”
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The Swedish nuclear startup Blykalla raised $50 million in a fresh round of funding to hasten its work on building small modular reactors. The most interesting name among the investors? The American nuclear startup Oklo. In a statement to NucNet, the companies said that by aligning two of the fastest-moving reactor developers in the world, the companies could shorten “critical paths to development, reducing schedule risks and unlocking supply chain efficiencies.” While Oklo’s as-yet-unbuilt microreactors would use liquid metal as a coolant, Blykalla’s design uses lead. But both models qualify as fourth-generation reactors.
General Motors CEO Mary Barra may have identified her heir apparent, but first she plans to put him through a “tough test” in his new role as chief product officer. Sterling Anderson, the former head of Tesla’s self-driving Autopilot division, first joined the Detroit giant in May, in what the electric vehicle site Electrek called “a surprising move that put a tech executive in charge of the legacy automaker’s entire vehicle development program.” Now a new report from Bloomberg stated that Barra sees Anderson as a frontrunner to replace her when she eventually steps down.
Flying drones over whales to collect samples of exhaled breath from blowholes is considered a breakthrough in non-invasive health monitoring for marine giants in Arctic regions. Now, however, a study of wild humpback, sperm and fin whales in northern Norway has revealed for the first time a potentially deadly virus known as cetacean morbillivirus circulating above the Arctic Circle. The upside is that the new use of drones could support conservation by detecting the virus, which is connected to mass strandings, early before major death events. “Drone blow sampling is a game-changer,” Terry Dawson, a co-author of the study and a professor at King’s College London, said in a statement. “It allows us to monitor pathogens in live whales without stress or harm, providing critical insights into diseases in rapidly changing Arctic ecosystems.”
The SPEED Act faces near-certain opposition in the Senate.
The House of Representatives has approved the SPEED Act, a bill that would bring sweeping changes to the nation’s environmental review process. It passed Thursday afternoon on a bipartisan vote of 221 to 196, with 11 Democrats in favor and just one Republican, Brian Fitzpatrick of Pennsylvania, against.
Thursday’s vote followed a late change to the bill on Wednesday that would safeguard the Trump administration’s recent actions to pull already-approved permits from offshore wind farms and other renewable energy projects.
Prior to that tweak, the bill would have limited the Trump administration’s ability to alter or revoke a federal permitting decision after the fact. The new version, adopted to secure votes from Republican representatives in Maryland and New Jersey, carves out an exception for agency actions taken between January 20 and the day the law takes effect.
"Last-minute changes to the SPEED Act undercut the bill’s intent to provide certainty to American business,” Rich Powell, the CEO of the Clean Energy Buyers Association said in a press release after the bill passed. “We hope the Senate will now take this language and strengthen those protections for existing and new projects needed to maintain grid reliability and meet growing electricity demand.”
At a high level, the SPEED Act would hasten federal permitting by restricting the evidence that federal agencies consider during the environmental review process and limiting the amount of time a court can deliberate over challenges to federal decisions. It would also disallow courts from vacating permits or issuing injunctions against projects if it finds that a federal agency violated NEPA. The changes would apply to permits of all kinds, including for oil and gas drilling, solar and wind farms, power lines, and data centers.
Environmental groups were generally against the bill. “Far from helping build the clean energy projects of the future, the SPEED Act will only result in an abundance of contaminated air and water, dirty projects, and chronic illnesses with fewer opportunities to hold polluters accountable in court,” Stephen Sciama, senior legislative council for Earthjustice Action, said in a press release on Thursday.
But proponents, such as the conservative energy group Clearpath Action, argue the bill will enable American industry to “invest and build with confidence” by cutting unnecessary red tape, improving coordination across agencies, and setting clearer rules and timelines for judicial review.
In House floor testimony on Thursday morning, Republican Bruce Westerman of Arkansas, the SPEED Act’s lead sponsor, said the bill had the backing of more than 375 industry groups and businesses, and bipartisan support in both the House and Senate. “The SPEED act will deliver the energy and infrastructure Americans need,” he said.
The bill lost at least one significant industry supporter after Wednesday’s changes, however. The American Clean Power Association, which had previously joined the American Petroleum Institute and others in a letter urging the House to pass the bill, withdrew its support, calling the new language a “poison pill” that “injects permit uncertainty, and creates a pathway for fully permitted projects to be canceled even after the Act’s passage.”
The Solar Energy Industries Association also denounced the bill’s passage.
Contrary to Westerman’s assertion, the bill’s fate in the Senate is far from certain. “Even if the House passes this bill today, it is going nowhere in the Senate,” Democratic Representative Jared Huffman of California asserted on the floor on Thursday. “What a missed opportunity to tackle a serious issue that Democrats were very interested in working on in good faith.”
Some Senate Democrats came out in opposition of the bill even before the late-breaking amendments. Senators Brian Schatz of Hawaii, Sheldon Whitehouse of Rhode Island, and Martin Heinrich of New Mexico told my colleague Jael Holzman that the bill did not do enough to ensure the buildout of transmission and affordable clean energy, but that they “will continue working to pass comprehensive permitting reform that takes real steps to bring down electricity costs.”
Some see getting the SPEED Act through the House as merely a starting point for a more comprehensive and fair permitting deal. Democratic Representative Adam Gray of California told Politico’s Joshua Siegel Thursday that he was voting in favor of the bill despite the last minute changes due to his faith that the Senate will hammer out a version that provides developers of all energy stripes the certainty they need.
His Californian colleague Representative Scott Peters, on the other hand, voted against the bill, but committed to getting a deal done with the Senate. “We need to get permitting reform done in this Congress,” he said on the House floor Thursday.