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Climate

Trump Wins a Court Battle Against America’s $20 Billion Green Bank

On PJM’s inflexible giants, another wind attack, and a Sino-Russia mega deal

Trump Wins a Court Battle Against America’s $20 Billion Green Bank
Heatmap Illustration/Getty Images

Current conditions: In the Pacific, Tropical Storm Kiko has strengthened into a hurricane on its way toward Hawaii • Unusually cool air in the Upper Midwest and Appalachians could drop temperatures to as much as 20 degrees Fahrenheit below average • Nearly one million people are displaced in Pakistan’s most populous state as Punjab suffers the biggest flood in its history.

THE TOP FIVE

1. Trump’s plan to kill green bank gets court approval

The Trump administration’s plan to kill a $20 billion clean energy financing program got the green light from a federal appeals court on Tuesday. The Greenhouse Gas Reduction Fund, housed under the Environmental Protection Agency, was designed to provide low-cost loans for solar installations, building efficiency upgrades, and other local efforts to reduce planet-heating emissions. The three-judge panel overturned a lower court’s injunction temporarily requiring the EPA to resume payments, ruling that most of the plaintiffs’ claims were contract disputes and belonged in the Court of Federal Claims. If the case now moves to that court, Heatmap’s Emily Pontecorvo wrote, “the plaintiffs would only be able to sue for damages and any possibility of reinstating the grants would be gone.”

Before leaving office, the Biden-era EPA finalized awards to eight nonprofits that would “create a national financing network for clean energy and climate solutions across the country.” The move was meant to insulate the program from cuts, but it stirred the new administration’s ire. The Trump EPA called the move a scam to give taxpayer-funded slush funds to nonprofits stacked with former Biden administration appointees. The recipients could still appeal the decision, which experts told Emily could still have significant ramifications. Watch this space.

2. Tech companies balk at flexible loads

The country’s largest electrical grid, the PJM Interconnection, put out a conceptual proposal in August for a plan to ask large electricity users such as data centers to voluntarily reduce their power consumption when there’s a shortage of electrons on the grid — and potentially require them to do so if too few step up. The plan is largely in line with what the Data Center Coalition, a trade association representing server companies, recently backed in a legal filing in North Carolina, as this newsletter previously reported. Yet big tech companies balked at the proposal, according to comments submitted in response. Microsoft warned that imposing curtailment undermines investor confidence. Amazon said targeting large power users to cut back on demand is discriminatory. Talen Energy, an independent power producer, said the 13-state-spanning PJM has no authority to make such a rule, and that individual state law governs load. The Data Center Coalition itself criticized the rule’s assumption that big power users have on-site back-up generation as overly broad and not reflective of reality.

The idea itself derives from an influential paper released by Duke University researchers in February that found the U.S. could add gigawatts’ worth of additional demand from new data centers without building out an equivalent amount of power plants if those facilities could curtail electricity usage when demand was particularly high. Heatmap’s Matthew Zeitlin described the strategy as “one weird trick for getting more data centers on the grid,” boiling down the approach simply as: “Just turn them off sometimes.”

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3. Trump moves to snatch back more wind permits

The Trump administration said it would reconsider the permit for SouthCoast Wind, a Massachusetts offshore wind farm approved last year by the Biden administration, according to legal filings seen by Reuters on Tuesday. In a motion filed to the U.S. District Court for the District of Columbia on Friday, lawyers at the Department of Justice said the Department of the Interior would review the project’s construction and operations plan.

The move came a week after Trump yanked back approvals for the nearly-complete Revolution Wind project off Rhode Island’s coast. It’s just the latest escalation in what Heatmap’s Jael Holzman called “Trump’s total war on wind.” As I reported yesterday in this newsletter, the Department of Transportation was the most recent agency to join the effort this week, axing $679 million in funding for infrastructure to support offshore wind development. But the Interior Department has led the charge with a witch hunt against policies that favor wind power, the de-designation of millions of acres of federal waters for offshore turbine construction, and a new investigation into bird deaths near windmills. The Department of Commerce tapped in last month by teeing up future tariffs with its own probe into whether imported turbine components pose a national security threat. The assault is prompting pushback. On Monday, the Democratic governors of five Northeastern states called on Trump to “uphold all offshore wind permits already granted.”

4. Russia and China ink major energy deal

The BRICS brothers. Suo Takekuma - Pool/Getty Images

In spite of Trump administration pressure aimed at convincing countries around the world to reject Russian oil, the Kremlin netted an energy deal with the world’s second-most populous nation on Tuesday in a sign of what Russian President Vladimir Putin called an “unprecedentedly high level” of good relations between Moscow and Beijing. Under the new agreement, China will buy Russian gas through a new pipeline from Siberia. Once complete, the Power of Siberia 2 pipeline will carry 50 billion cubic meters of gas through Mongolia to northern China every year.

The deal came at the tail end of a summit in China between Putin, Chinese President Xi Jinping, and Indian Prime Minister Narendra Modi. The trio of hardline leaders, who represent the three biggest economies in the world, came together for a photo depicting a friendly three-way handshake widely interpreted as a show of unity and defiance against Washington’s attempts to impose its will through economic sanctions.

5. TVA signs onto another big nuclear deal

The Tennessee Valley Authority is broadening its effort to remake itself as the testing ground for new American small modular reactors. On Tuesday, the federally-owned utility announced plans to buy 6 gigawatts of reactors from NuScale Power, the first and only SMR developer whose design has won approval from the Nuclear Regulatory Commission. Shares of NuScale — which has struggled since the high-profile failure of what was supposed to be the nation’s debut SMR power plant in Utah two years ago — surged nearly 8%.

The TVA had already planned to build the first U.S. units of GE Vernova-Hitachi Nuclear Energy’s 300-megawatt reactors, and last month became the country’s first utility to sign a power purchase agreement with a fourth-generation reactor developer, the Google-backed Kairos Power. The deals come amid what Heatmap’s Katie Brigham called a “nuclear power dealmaking boom.” On Tuesday an industrial standard-setting group that includes Exxon Mobil, Chevron, Shell, Rio Tinto, and IBM launched a new consortium to streamline processes around building advanced nuclear reactors. On Wednesday, Kairos inked a deal with nuclear fuel producer BWXT to work together on producing the rare type of uranium fuel the reactor company needs for its plants.

THE KICKER

Wind turbines are notoriously not always recyclable. But they are reusable. Just ask Jos de Krieger, the co-founder of a Dutch company called Blade Made that purchases used turbines and transforms them into sleek, minimalist tiny homes. “Everything in the built environment — everything that you see around you — has an end of life,” Krieger told CNN. “And we need solutions besides waste or landfill, incineration or something without value… Changing that perception is really something that has to happen in the eyes of everyone,” he added, calling for “processes that create stories, instead of waste.”

Yellow

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Politics

Americans Still Love the Environment

Heatmap’s latest poll adds urgency to one of the biggest questions facing the climate: Can the environmental movement come back?

An old photograph.
Heatmap Illustration/Getty Images

Three years ago, I wrote a piece for this website about how I’d stopped openly describing myself as an environmentalist. Looking back at it now, it’s a bit of a head-scratcher: I love nature, conservation, and all things outdoorsy, and while I stand by my greater point — that we can’t let uncompromising ideals about the environment hold back renewable energy development — the truth is, I am absolutely an environmentalist. But saying so felt analogous to calling myself tender-hearted, naïve, and retrograde.

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Heatmap Illustration/Getty Images

Current conditions: The Atlantic set a record on Saturday for the longest stretch of the hurricane season since the advent of satellites without a major named storm • Argentina is bracing for severe Zonda winds, a type of intense downslope gust unique to the eastern side of the Andes Mountains • While the wildfires darkening skies over Indonesia have receded, blazes are still raging across the southern shores of Sumatra, Borneo, and West Papua.


THE TOP FIVE

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New Englanders Will Pay Through the Nose to Stay Warm This Winter

Even the hardiest are shivering at the price of heating oil.

Heating oil and money.
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While most of the country heats their homes with natural gas or electricity, about 5 million households — overwhelmingly located in the Northeast — use oil. Like diesel and gasoline (both of which have set price records recently) home heating oil is distilled from crude oil, which is currently trading at prices not seen since the early months of the war between the United States, Israel, and Iran.

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