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Climate

EPA Prepares to Gut Wetland Protections

On fusion’s big fundraise, nuclear fears, and geothermal’s generations uniting

EPA Prepares to Gut Wetland Protections
Heatmap Illustration/Getty Images

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.

THE TOP FIVE

1. EPA plans to gut the Clean Water Act

The Environmental Protection Agency is preparing to propose a new Clean Water Act rule that would eliminate federal protections for many U.S. waterways, according to an internal presentation leaked to E&E News. If finalized, the rule would establish a two-part test to determine whether a wetland received federal regulations: It would need to contain surface water throughout the “wet season,” and it would need to be touching a river, stream, or other body of water that flows throughout the wet season. The new language would require fewer wetland permits, a slide from the presentation showed, according to reporter Miranda Willson. Two EPA staffers briefed on the proposal confirmed the report.

The new rule follows the 2023 Supreme Court decision in Sackett v. EPA, which said that only waterways “with a ‘continuous surface connection’ to a ‘relatively permanent’ body of water” fell under the Clean Water Act’s protections, according to E&E News. What “relatively permanent” means, however, the court didn’t say, nor did Biden’s EPA. The two EPA staffers, who were granted anonymity to avoid retribution, “said they believed the proposal was not based in science and could worsen pollution if finalized,” Willson wrote.

2. Commonwealth Fusion raises nearly $900 million in funding round

Investors are hot on the Massachusetts Institute of Technology spinoff promising to make fusion energy a reality. Commonwealth Fusion Systems netted an eye-popping $863 million in its latest fundraising round. In a press release Thursday, the company said that its “oversubscribed round of capital is the largest amount raised among deep tech and energy companies since” its $1.8 billion financing deal in 2021. Commonwealth Fusion will use the funds to complete its demonstration project and further develop its proposed first power plant in Virginia. To date, the company said, it has raised close to $3 billion, “about one-third of the total capital invested in private fusion companies worldwide.” It’s a sign that investors recognize Commonwealth Fusion “is making fusion power a reality,” CEO Bob Mumgaard said.

The fusion industry has ballooned over the past six years. “It is finally, possibly, almost time” for the technology to arrive, Heatmap’s Katie Brigham wrote last year, noting: “For the ordinary optimist, fusion energy might invoke a cheerful Jetsons-style future of flying cars and interplanetary colonization. For the cynic, it’s a world-changing moment that’s perpetually 30 years away. But investors, nuclear engineers, and physicists see it as a technology edging ever closer to commercialization and a bipartisan pathway towards both energy security and decarbonization.”

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  • 3. In a record, grid connections soared 33% last year

    A record 75 gigawatts of new generating capacity hooked up to the U.S. power grid last year, a 33% surge from the previous year, thanks to new federal regulations aimed at streamlining the process. That’s according to new data from the consultancy Wood Mackenzie published Thursday. The report found that the Federal Energy Regulatory Commission’s Order No. 2023, issued in July 2023, along with other reforms by independent system operators, have had a “considerable impact on processing interconnection agreements, by driving improvements through reducing speculative projects and clearing queue backlogs.” While connections increased, regional grid operators received 9% fewer new project entries and saw a 51% uptick in non-viable projects since 2022.

    Solar and storage technologies made up 75% of all interconnection agreements in 2024, equaling about 58 gigawatts. Wood Mackenzie projected that the sectors will retain a similar market share in 2025. Natural gas saw an increase in interconnection requests since 2022, adding 121 gigawatts of capacity. New gas applications are already breaking annual records this year. But overall the number of gas projects that successfully hook up to the grid is down 25% since 2022.

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  • 4. Trump’s assault on nuclear regulator stokes safety fears

    Almost 200 people have left the Nuclear Regulatory Commission since President Donald Trump’s inauguration in January, according to new estimates published Thursday in the Financial Times. Of the 28 officials in senior leadership positions, nearly half are working in an “acting” capacity, and only three of the five NRC commissioner roles are filled. “It is an unprecedented situation with some senior leaders having been forced out and many others leaving for early retirement or worse, resignation,” Scott Morris, the former NRC deputy executive director of operations, who retired in May, told the newspaper. “This is really concerning for the staff and is one of the factors causing many key staff and leaders to leave the agency they love ... creating a huge brain drain of talent.”

    The exodus comes as Trump is pressing the agency to dramatically overhaul and speed up its review and approval process for new reactors. Supporters of the president’s effort say the NRC has stymied the nuclear industry for decades, and a future buildout of new reactors requires clearing house. But skeptics of the burn-it-all-down approach warn that the atomic energy industry’s success in avoiding major accidents since the 1979 partial meltdown at Three Mile Island is owed to NRC oversight, and that the agency’s processes have actually protected nuclear developers by avoiding frivolous lawsuits and not-in-my-backyard types.

    5. Geothermal’s giant has ‘chosen a winner’ among the next-gen upstarts

    Geothermal giant Ormat has reigned over the global industry of harvesting energy from hot underground reservoirs for the past 60 years. Now a new generation of companies is promising to tap the Earth’s heat even in places without water by using fracking technology to drill much deeper, vastly expanding the potential for geothermal. And Ormat has placed a big bet on one. On Thursday, the company inked a strategic partnership with Houston-based Sage Geosystems. As part of the deal, Sage will build its first commercial power plant at an existing Ormat facility in Nevada or Utah, significantly speeding up the timeline for the debut generating station. Sage CEO Cindy Taff told me the plant could be online by next year. “Ormat’s chosen a winner,” Yakov Feygin, a researcher at the Center for Public Enterprise who co-authored a report on next-generation geothermal, told me.

    A majority of U.S. voters are still unfamiliar with geothermal power, according to a new poll from Data for Progress I reported on this week. When exposed to details about how the technology works, however, support grows among voters across the political spectrum. Republicans in particular are supportive.


    A recent poll shows a lack of familiarity with geothermal.Data for Progress

    THE KICKER

    The Grammy- and Oscar-award winning New Orleans jazz and funk singer Jon Batiste released a new song to mark the 20th anniversary of Hurricane Katrina, the catastrophic storm that flooded his home city. Dubbed “Petrichor,” a word that describes the scent of earth after rain, the lyrics unfold like a haunting hymn over a driving beat. “Help me, Lord / They burning the planet down / No more second linin' in the street / They burning the planet down, Lord / Help me, Lord / No more plants for you to eat.” In an interview published in The Guardian, Batiste said the song was meant to be a statement. “You got to bring people together. People power is the way that you can change things in the world,” he said. “It’s a warning, set to a dance beat.

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    Spotlight

    Inside the Data Center Lobby’s Quiet Ad Blitz

    What’s the deal with all those “America Connects” videos?

    Data center.
    Heatmap Illustration | Unsplash

    The data center lobby is launching a big PR blitz on television and social media, racking up millions of views on evidently AI-generated content boasting economic impacts from new projects and hitting against criticism around energy and water use.

    In an interview with me Wednesday, Data Center Coalition CEO Josh Levi explained how and why his organization – the largest and most prominent data center trade group – stood up an “evolving” national advertising campaign called America Connects.

    Keep reading...Show less
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    Hotspots

    The Data Center Most Likely to Get Investigated by a Democratic Congress

    And more of the week’s top news around project fights.

    Map of data center and renewable energy fights.
    Heatmap Illustration

    1. Richland Township, Louisiana - The Meta Hyperion project is suddenly now a central focus of activists and media coverage, just as it is seeking environmental permits for a key gas pipeline.

    • A number of painful investigations about Hyperion published in the last week: a New York Times profile of the local negotiations surrounding the deal that involved interviews with more than 40 people, painting the entire development as secretive. Then came an article from States Newsroom’s Louisiana affiliate claiming Governor Jeff Landry’s staff signed more than 100 NDAs, including some with Meta. Environmental advocates are trying to marshal up more public opposition to the project; on Monday, Earthjustice and advocates they’re working with on the ground in the Bayou are holding a press conference about Hyperion.
    • Why all the attention now? For starters, the state regulatory commission is considering whether to approve more gas plants at the project site. In addition, a Federal Register notice published last week disclosed ETC Tiger filed paperwork with the Federal Regulatory Energy Commission to get authorization for a gas pipeline that’ll pump roughly 1 million dekatherms per day to Hyperion. (A single dekatherm is a common measurement for gas transport volume equal to about 1,000,000 BTUs, so you do the math on how massive that pipeline is going to be.)
    • Louisiana is a hot bed for environmental justice advocacy because of Cancer Alley and a long legacy of offshore oil and gas development. I expect that as we saw under Trump 1.0, this amount of media coverage will lead to this project becoming an oversight topic in Congress, especially given the likelihood of prolonged federal review.

    2. Memphis, Tennessee – Hyperion won’t be the first data centers that House Democrats go after if they retake the lower chamber in Congress though – that looks like it’ll be xAI’s Colossus projects. Congrats, Elon!

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    Q&A

    Is Trump to Blame When Data Centers Choose Gas?

    A conversation with Peter Gardett of Noreva

    Is Trump to Blame When Data Centers Choose Gas?

    This week’s conversation is with Peter Gardett, CEO of the AI-powered energy market research firm Noreva. Before helming the price and deal research consultancy, Gardett built a strong repertoire as an energy expert spearheading analysis at S&P Global, IHS Markit, and Argus Media. I reached out to Gardett because I wanted a candid conversation about the fuel choices data center companies are making under the Trump administration and, to my delight, Gardett was open to sitting in my hot seat.

    Let’s get into it then. The following conversation was lightly edited for clarity.

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