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The West loves its wide open spaces. Utah, though, is something else.

Every state would like to think itself singular but, truly, there is no place like Utah. The Beehive State has long fascinated outsiders; today, that attention is largely trained on Netflix exposés about the Church of Jesus Christ of Latter-day Saints, ballerina farmers, and Crumbl cookies, but historically, the obsession has been with its land. Utah has the nation’s highest density of National Parks; its rivers, canyons, mountains, and deserts have stirred Mark Twain, John Wesley Powell, John Muir, and Edward Abbey. To quote a more contemporary literary conduit, Post Malone: “It’s a free country out there. You can buy suppressors in Utah. You can … walk into the grocery store with a handgun on your hip. Cowboy shit.”
More recently, Utah has sought out a different source of outsider attention — that of the United States Supreme Court. Two lawsuits that originated in the state are currently under consideration by the justices. The first, Seven County Infrastructure Coalition v. Eagle County, Colorado, concerns the scope of the National Environmental Policy Act with regard to the construction of a railroad spur that would link Utah’s oil fields to the national rail lines. (Though the tracks would be in Utah, the connection would ultimately increase hazardous waxy crude oil shipments through the Colorado county in the case citation.) The second lawsuit, Utah v. the United States — which the court has yet to decide whether or not it will hear — involves the state suing the federal government over its allegedly unconstitutional control of “unused” lands by the Bureau of Land Management. If Utah prevails in the case, it could mean the vast reshaping of the American West, about 47% of which is federal land.
“Utah is all crazy, all the time right now,” Stephen Bloch, the legal director of the Southern Utah Wilderness Alliance, a conservation nonprofit opposing Utah v. the U.S., told me.
While not immediately apparent, there is nevertheless a strange logic to the two lawsuits that otherwise appear to have little to do with one another beyond the fact of their geography. At their core, both cases are ultimately about who gets to decide to do what with Utah’s land.
To anyone familiar with land use issues in the Mountain West, all of this is fairly routine. A strain of libertarianism and anti-government individualism runs through the more conservative inland Western states, coloring everything from the gun ownership policies so colorfully observed by Post Malone to whom the states back for president. Yet in the extent to which it is willing to pursue this common ideal, Utah is still an outlier.
“Westerners revere their public lands,” Betsy Gaines Quammen, a historian and author of American Zion: Cliven Bundy, God & Public Lands in the West, told me. “This is what makes the West the West — that you can come out and just go hiking, and you’re not trespassing.” Take the recent Montana Senate race, in which incumbent Democrat Jon Tester wielded his opponent Tim Sheehy’s comparatively mild comments about privatizing public lands as a cudgel in a deep red state. (Tester, it must be added, lost his reelection bid.) But in Utah, instead of celebrating federal land as the embodiment of this Western inheritance, its politicians are trying to eliminate them.
In the case of Utah, this goal is immediate and obvious. State officials claim that the 18.5 million acres of “unappropriated” BLM land in the state — that is, public lands not already designated as national parks, monuments, wilderness areas, national forests and conservation areas, or Tribal lands — are held in violation of the U.S. Constitution, which doesn’t explicitly authorize the federal government to hold land indefinitely. “Utah deserves priority when it comes to managing this land,” the state’s Republican Governor Spencer Cox said at a news conference in August, adding, “Utah is in the best position to understand and respond to the unique needs of our environment and communities.”
While Utah’s crown jewel, its “Mighty Five” National Parks, would remain under federal management, the state of Wyoming — which has backed Utah’s lawsuit in an amicus brief along with Idaho, Alaska, and the Arizona legislature — wants even more. “In Wyoming’s filing, they’re like, ‘Oh no, we’re in for everything,” Bloch said. “‘There shouldn’t be any federal land in Wyoming’ — including national parks.” More than 95% of Yellowstone National Park — the nation’s first national park, designated in 1872 — sits within Wyoming’s borders.
It seems doubtful that the Supreme Court will take up this case. For one thing, Utah is attempting to leapfrog the lower courts by taking its complaints directly to SCOTUS, a shortcut it says is justified by its concerns being “of profound importance not just to Utah, but to all the States in the Nation.” For another, President Biden’s Department of Justice has pointed out that what Utah seeks is outside the powers vested in the judicial branch; only Congress has decision-making authority over public lands. On the other hand, “Anyone right now, I think, would hesitate to say definitively, ‘Here’s what the Supreme Court will do,’” Aaron Weiss, the deputy director of the Center for Western Priorities, a nonpartisan conservation advocacy group, told me.
Seven County Infrastructure Coalition is a different story. Opponents of the railway claim that the government’s environmental review took into account the remote economic benefits of the railway — including induced employment, a notoriously inexact projection — while not equally weighing the indirect health impacts of the rail line, such as the pollution of additional fracking wells in the Uinta Basin or frontline communities near the refineries on the Gulf, where the crude oil is ultimately headed. The Supreme Court (minus Neil Gorsuch, who recused himself at the 11th hour) heard oral arguments in the case this week, however, and appears on track to rule that the government’s NEPA review for the railroad was sufficient. That would ultimately be a win for the Uinta Basin Railway and the business coalition that brought the suit after the U.S. Court of Appeals for the District of Columbia Circuit ruled there were flaws in the upstream and downstream analyses.
“I’m really worried that the court could end up inadvertently blessing this fundamentally arbitrary, imbalanced result, where an agency is allowed to talk about all the indirect benefits that they want — to go as far down the line, as far upstream, to the ends of the Earth chasing these indirect benefits — but not bother talking about the corresponding costs,” Jason Schwartz, the legal director at the Institute for Policy Integrity at New York University’s School of Law, told me. “That undermines the very purpose of NEPA, which was to present the public and decision-makers with a full and balanced view of both the economic and environmental perspectives.” (Schwartz authored an amicus brief for the Institute of Policy Integrity against the government’s NEPA review.)
A ruling that reaffirms the current scope of NEPA wouldn’t be a shock — the court has always sided with the government in such cases, E&E News notes. What’s different this time is that the plaintiffs presented the court with a third option, an avenue that would severely limit the scope of the NEPA’s environmental review process going forward by restraining agency considerations only to what falls under their immediate purview. Chief Justice John Roberts has sounded skeptical of this pitch so far; it’s this third path, however, that the oil and gas producer Anschutz submitted an amicus brief to the court to support, drawing attention to the fact that “far more is at stake … than the 88-mile rail line in rural Utah.” (The company’s owner, Philip Anchutz, has close ties to Gorsuch.)
“There are so many ways to make NEPA more efficient without arbitrarily decreasing the sometimes crucial information related to indirect effects that NEPA currently provides,” Schwartz told me. Sam Sankar, the senior vice president for programs at Earthjustice, which is supporting the defense, added to me that his read on Seven County Infrastructure Coalition case is that it proves how this Supreme Court has “a pretty aggressive deregulatory, anti-environmental agenda.” The Seven County Infrastructure Coalition told Heatmap in a statement that with regards to the railroad, “we remain committed to advancing this critical infrastructure, which aims to unlock economic opportunities and support the region’s long-term development,” but that it could not comment further as the case remains under deliberation.
A threat to NEPA is also a challenge to who gets a say in what Utah does with its land, of course. Like Utah v. the U.S., the filing for Seven County Infrastructure Coalition bristles with indignation over the government’s determinations about how things should be done or what impacts should be considered, even if the Surface Transportation Board ultimately gave the railroad the green light. Utah, meanwhile, originated as a reaction to the BLM’s Public Lands Rule, in which the agency considers conservation as a land use on equal footing with those of energy development, mining, or grazing. (Specifically, Utah lawmakers were furious about the BLM closing some roads to motorized vehicles. “That’s something that Utah gets very worked up about,” Bloch, the legal director at SUWA, told me.)
There is always a risk of overascribing the state of Utah’s otherwise seemingly inexplicable actions to Mormonism — a religion that is far from monolithic and is often the subject of derision from outsiders. But Quammen, the historian, told me that you can’t separate today’s public land policies from the cultural and theological inheritances and beliefs reinforced over generations of Mormon tradition. “A lot of the people taking these stands [over public lands] come from families that have been in that area for generations, so they have stories and ideologies that have been passed down — as has their relationship with the land,” Quammen explained.
Weiss, of Western Priorities, concurred. “There are some folks in Utah who truly believe that this land belongs to them,” he said.
Quammen noted by way of example that Cliven Bundy, who led a standoff at the Malheur National Wildlife Refuge in Oregon in 2016 over the demand that the BLM cede its land to the states, told her his legal right to the public lands where he grazes his cattle in Nevada started when his ancestor’s horse drank from its Virgin River — although in fact it was a Southern Paiute river before that. (That’s not the only historically inaccurate ownership claim that might be at play in Utah; Bloch of SUWA noted that the lands within the exterior boundaries of the state were ceded to the federal government in 1848 through the Treaty of Guadalupe Hidalgo at the end of the U.S.-Mexico War, and in that sense, “they’ve never been ‘Utah lands’ so there’s nothing to ‘give back’ to Utah.”)
Preservationists and conservationists during the settlement era saw Utah’s landscape as untrammeled (“also not true, because it was Indigenous land,” Quammen added) and in need of protection, but early church belief viewed it differently. “They thought that the land being utilized, built, and made productive was pleasing to the eye of God,” Quammen said. Finally, Joseph Smith, the founder of LDS, emphasized the importance of his adherents understanding the U.S. Constitution inside and out. In the case of public lands disputes, this resurfaces in the claim that the federal government can’t own land indefinitely, Quammen told me. “That’s the piece about understanding the Constitution better than constitutional scholars.” Ironically, it disregards the state’s constitution, in which Utah explicitly agreed in 1894 to “forever disclaim[s] all right and title to the unappropriated public lands” in order to be granted statehood.
There is, of course, a significant small-government push in the Republican Party, too; privatizing land was part of the party’s presidential platform this year. It can be hard to tell, however, where one influence ends and another begins: William Perry Pendley, a key figure in the Reagan administration during the Sagebrush Rebellion fight over public lands in the 1970s and 1980s, authored the Project 2025 chapter on the Department of the Interior. Doug Burgum, Trump’s nominee for the head of the department, recently met with Utah’s Republican Senator Mike Lee, a devout Latter-Day Saint, who afterward posted, “Great meeting with @dougburgum and planning the return of American lands to the American people.” And if Trump attempts to walk back protections of Bears Ears and Grand Staircase Escalante National Monuments again, that land would be added to the pot of what Utah is seeking to acquire.
Utah’s organizers seem prepared to make an appeal to Congress or the Trump administration if the Supreme Court doesn’t make a move in their favor; funding for the messaging for Stand for Our Land, the publicity arm of the lawsuit, has reportedly outpaced the spending on lawyers. (A request for comment to the Utah Attorney General’s Office and Gov. Spencer J. Cox went unanswered.)
The implications of the Supreme Court’s decisions on limiting the scope of NEPA or hearing the public lands lawsuit are vast in both cases. The former could ease the way for expansive oil and gas development in Utah, which would be “a bona fide public health nightmare,” according to Brian Moench, an anesthesiologist on the board of Utah Physicians for a Healthy Environment, which is opposing the railroad, due to all the additional pollution. “If they’re allowed to do this and increase the oil and gas drilling production by 500% — I don't know what you would call the end result. Unlivable, as far as I’m concerned.”
In the case of the public lands, meanwhile, “I think [Utah is] trying to give the impression that these are scrubby lands that nobody cares about when, in fact, it concerns landscapes like Labyrinth Canyon or the Dirty Devil or the Fisher Towers — these very iconic red rock landscapes that Americans think about when they think about visiting the state,” Bloch told me. “Those are the types of places in the crosshairs with this lawsuit.”
Ironically, it’s doubtful that a transfer of public lands would even benefit most Utahns. Because states can’t run deficits, a disaster like a bad wildfire would drain the Utah budget. Additionally, ranchers would pay far more for grazing their cattle on state lands (as high as $19.50 per animal unit per month, per the BLM) than on federal lands, where the fee is a dirt-cheap $1.35. Ultimately, the state likely wouldn’t even possess much of the land it claims to want so badly.
Utah’s politicians “would much prefer to be able to sell off any lands that they want — whether it’s for oil and gas leasing, whether it’s for mansions near national parks. This is very valuable land and a very valuable resource that belongs to all Americans,” Weiss of Western Priorities said. “And Utah would prefer if it belonged to them.”
Public lands and pride in the natural environment are fundamental to many Westerners’ beliefs and identities. By that token, it would seem Utah has made a miscalculation that only an insider could truly appreciate the cost of; by taking over control of portions of its territory from the federal government, it would be, in effect, boxing Utahns out of their own lands —a craven, modern twist if ever there was one.
But to be able to hike or hunt, to pitch a tent, to fish, to stargaze, to graze one’s cattle on nearly 70% of the land in Utah, because it belongs to us, the public?
Now that’s cowboy shit.
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On Thacker Pass, the Bonneville Power Administration, and Azerbaijan’s offshore wind
Current conditions: New York City is bracing for triple-digit heat in some parts of the five boroughs this week • The warm-up along the East Coast could worsen the drought parching the country’s southeastern shores • After Sunday reached 95 degrees Fahrenheit in the war-ravaged Gaza, temperatures in the Palestinian enclave are dropping back into the 80s and 70s all week.
Assuming world peace is something you find aspirational, here’s the good news: By all accounts, President Donald Trump’s two-day summit in Beijing with Chinese President Xi Jinping went well. Here’s the bad news: The energy crisis triggered by the Iran War is entering a grim new phase. Nearly 80 countries have now instituted emergency measures as the world braces for slow but long-predicted reverberations of the most severe oil shock in modern history. With demand for air conditioning and summer vacations poised to begin in the northern hemisphere’s summer, already-strained global supplies of crude oil, gasoline, diesel, and jet fuel will grow scarcer as the United States and Iran mutually blockade the Strait of Hormuz and halt virtually all tanker shipments from each other’s allies. “We are taking that outcome very seriously,” Paul Diggle, the chief economist at fund manager Aberdeen, told the Financial Times, noting that his team was now considering scenarios where Brent crude shoots up to $180 a barrel from $109 a barrel today. “We are living on borrowed time.”
The weekend brought a grave new energy concern over the conflict’s kinetic warfare. On Sunday, the United Arab Emirates condemned a drone strike it referred to as a “treacherous terrorist attack” that caused a fire near Abu Dhabi’s Barakah nuclear station. The UAE’s top English-language newspaper, The National, noted that the government’s official statement did not blame Iran explicitly. The attack came just a day after the International Atomic Energy Agency raised the alarm over drone strikes near nuclear plants after a swarm of more than 160 drones hovered near key stations in Ukraine last week.
We are apparently now entering the megamerger phase of the new electricity supercycle. On Friday, the Financial Times broke news that NextEra Energy is in talks with rival Dominion Energy for a tie-up that would create a more than $400 billion utility behemoth in one of the biggest deals of all time. The merger talks, which The Wall Street Journal confirmed, could be announced as early as this week. The combined company would reach from Dominion’s homebase of Virginia, where the northern half of the state is serving as what the FT called “the heartland of U.S. digital infrastructure serving the AI boom,” down to NextEra’s home-state of Florida, where the subsidiary Florida Power & Light serves roughly 6 million customers. While Dominion dominates data centers in Northern Virginia, NextEra last year partnered with Google to build more power plants and even reopen the Duane Arnold nuclear station in Iowa.

Trump digs lithium. In fact, he’s such a fan of Lithium Americas’ plan to build North America’s largest lithium mine on federal land in Nevada that he renegotiated a Biden-era deal to finance construction of the Thacker Pass project to secure a 5% equity stake in the publicly-traded developer. Yet the White House’s macroeconomic policies are pinching the nation’s lithium champion. During its first-quarter earnings call with investors last week, Lithium Americas cautioned that the Trump administration’s steel tariffs, coupled with inflation from disrupted shipments through the Strait of Hormuz, could add between $80 million and $120 million to construction costs at Thacker Pass. Most of the impact, Mining.com noted, is expected this year. Once mining begins, the project could spur new discussion of a strategic lithium reserve, the case for which Heatmap’s Matthew Zeitlin articulated here.
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The Department of Energy has selected Travis Kavulla, an energy industry veteran, as the 17th chief executive and administrator of the Bonneville Power Administration, NewsData reported. Founded under then-President Franklin D. Roosevelt in 1937, the federal agency is a holdover from the New Deal era before utilities had built out electrical networks in rural parts of the U.S. Unlike the Tennessee Valley Authority — which functions as a standalone utility that owns and sells power, though it’s wholly owned by the federal government and its board of directors is appointed by the White House — the BPA, as it’s known, is a power marketing agency that sells electricity from hydroelectric dams owned by the Army Corps of Engineers and the Department of the Interior’s Bureau of Reclamation. Kavulla currently serves as the head of policy for Base Power, the startup building a network of distributed batteries to back up the grid. He previously worked as the regulatory chief at the utility NRG Energy, and as a state utility commissioner in his home state of Montana. NewsData, a trade publication focused on Western energy markets, cautioned that the Energy Department may hold off on announcing the appointment for “the next few days or weeks” as sources warned that “it might be delayed while the department conducts a background check, or to allow the new undersecretary of energy, Kyle Haustveit, to be confirmed.”
Reached Sunday night via LinkedIn message, Kavulla politely declined to comment on whether he was appointed to lead the BPA.
Offshore wind may be spinning in reverse in the U.S. as the Trump administration attempts to, as Heatmap’s Jael Holzman put it, “murder” an industry through death by a thousand cuts. But elsewhere in the world, offshore wind is booming. Just look at Azerbaijan. Despite its vast reserves of natural gas, the nation on the Caspian Sea is looking into building its first offshore turbines. On Friday, offshoreWIND.biz reported that the Azerbaijan Green Energy Company, owned by the Baku-based industrial giant Nobel Energy, had commissioned a Spanish company to design a floating LiDAR-equipped buoy for the country’s first turbines in the Caspian. The debut project, backed by the Azeri government, would start with 200 megawatts of offshore wind and eventually triple in size.
Before the wealthy software entrepreneur Greg Gianforte ran to be governor of Montana, he donated millions of dollars to a Christian-themed museum that claims humans walked alongside dinosaurs and the Earth is just 6,000 years old. After winning the state’s top job, the Republican set about revoking virtually all policies related to climate change, including banning the projected effects of warming from state agencies’ risk forecasts. With drought withering the state, however, Gianforte has turned to perhaps the most ancient policy approach humanities leaders have called upon to fix devastating weather patterns: Pray. On Sunday, Gianforte declared an official day of prayer for rain. “Prayer is the most powerful tool we have,” he wrote in a post on X. “I ask all who are faithful to come to God with thanks and pray.”
With construction deadlines approaching, developers still aren’t sure how to comply with the new rules.
Certainty, certainty, certainty — three things that are of paramount importance for anyone making an investment decision. There’s little of it to be found in the renewable energy business these days.
The main vectors of uncertainty are obvious enough — whipsawing trade policy, protean administrative hostility toward wind, a long-awaited summit with China that appears to have done nothing to resolve the war with Iran. But there’s still one big “known unknown” — rules governing how companies are allowed to interact with “prohibited foreign entities,” which remain unwritten nearly a year after the One Big Beautiful Bill Act slapped them on just about every remaining clean energy tax credit.
The list of countries that qualify as “foreign entities of concern” is short, including Russian, Iran, North Korea, and China. Post-OBBBA, a firm may be treated as a “foreign-influenced entity” if at least 15% of its debt is issued by one of these countries — though in reality, China is the only one that matters. This rule also kicks in when there’s foreign entity authority to appoint executive officers, 25% or greater ownership by a single entity or a combined ownership of at least 40%.
Any company that wants to claim a clean energy tax credit must comply with the FEOC rules. How to calculate those percentages, however, the Trump administration has so far failed to say. This is tricky because clean energy projects seeking tax credits must be placed in service by the end of 2027 or start construction by July 4 of this year, which doesn’t leave them much time left to align themselves with the new rules.
While the Treasury Department published preliminary guidance in February, it largely covered “material assistance,” the system for determining how much of the cost of the project comes from inputs that are linked to those four nations (again, this is really about China). That still leaves the issue of foreign influence and “effective control,” i.e. who is allowed to own or invest in a project and what that means.
This has meant a lot of work for tax lawyers, Heather Cooper, a partner at McDermott Will & Schulte, told me on Friday.
“The FEOC ownership rules are an all or nothing proposition,” she said. “You have to satisfy these rules. It’s not optional. It’s not a matter of you lose some of the credits, but you keep others. There’s no remedy or anything. This is all or nothing.”
That uncertainty has had a chilling effect on the market. In February, Bloomberg reported that Morgan Stanley and JPMorgan had frozen some of their renewables financing work because of uncertainty around these rules, though Cooper told me the market has since thawed somewhat.
“More parties are getting comfortable enough that there are reasonable interpretations of these rules that they can move forward,” she said. “The reality is that, for folks in this industry — not just developers, but investors, tax insurers, and others — their business mandate is they need to be doing these projects.”
Some of the most frequent complaints from advisors and trade groups come around just how deep into a project’s investors you have to look to find undue foreign ownership or investment.
This gets complicated when it comes to the structures involved with clean energy projects that claim tax credits. They often combine developers (who have their own investors), outside investment funds, banks, and large companies that buy the tax credits on the transferability market.
These companies — especially the banks, which fund themselves with debt — “don’t know on any particular date how much of their debt is held by Chinese connected lenders, and therefore they’re not sure how the rules apply, and that’s caused a couple of banks to pull out of the tax equity market,” David Burton, a partner at Norton Rose Fulbright, told me. “It seems pretty crazy that a large international bank that has its debt trading is going to be a specified foreign entity because on some date, a Chinese party decided to take a large position in its debt.”
For those still participating in the market, the lack of guidance on debt and equity provisions has meant that lawyers are having to ascend the ladder of entities involved in a project, from private equity firms who aren’t typically used to disclosing their limited partners to developers, banks, and public companies that buy the tax credits.
“We’re having to go to private equity funds and say, hey, how many of your LPs are Chinese?” David Burton, a partner at Norton Rose Fulbright, told me. This is not information these funds are typically particularly eager to share. If a lawyer “had asked a private equity firm please tell us about your LPs, before One Big Beautiful Bill, they probably would have told us to go jump in the lake,” Burton said.
Still, the deals are still happening, but “the legal fees are more expensive. The underwriting and due diligence time is longer, there are more headaches,” he told me.
Typically these deals involve joint ventures that formed for that specific deal, which can then transfer the tax credits to another entity with more tax liability to offset. The joint venture might be majority owned by a public company, with a large minority position held by a private equity fund, Burton said.
For the public company, Burton said, his team has to ask “Are any of your shareholders large enough that they have to be disclosed to the SEC? Are any of those Chinese?” For the private equity fund, they have to ask where its investors are residents and what countries they’re citizens of. While private equity funds can be “relatively cooperative,” the process is still a “headache.”
“It took time to figure out how to write these certifications and get me comfortable with the certification, my client comfortable with it, the private equity firm comfortable with it, the tax credit buyer comfortable with it,” he told me, referring to the written legal explanation for how companies involved are complying with what their lawyers think the tax rules are.
Players such as the American Council on Renewable Energy hope that guidance will cut down on this certification time by limiting the universe of entities that will have to scrub their rolls of Chinese investors or corporate officers.
“It’d be nice if we knew you only have to apply the test at the entity that’s considered the tax owner of the project,” i.e. just the joint venture that’s formed for a specific project, Cooper told me.
“There’s a pretty reasonable and plain reading of the statute that limits the term ’taxpayer’ to the entity that owns the project when it’s placed in service,” Cooper said.
Many in the industry expect more guidance on the rules by the end of year, though as Burton noted, “this Treasury is hard to predict.”
In the meantime, expect even more work for tax lawyers.
“We’re used to December being super busy,” Burton said. “But it now feels like every month since the One Big Beautiful Bill passed is like December, so we’ve had, like, you know, eight Decembers in a row.”
Deep cuts to the department have left each staffer with a huge amount of money to manage.
The Department of Energy has an enviable problem: It has more money than it can spend.
DOE disbursed just 2% of its total budgetary resources in fiscal year 2025, according to a report released earlier this year from the EFI Foundation, a nonprofit that tracks innovations in energy. That figure is far lower than the 38% of funds it distributed the year prior.
While some of that is due to political whiplash in Washington, there is another, far more mundane cause: There simply aren’t that many people left to oversee the money. Thanks to the Department of Government Efficiency’s efforts, one in five DOE staff members left the agency. On top of that, Energy Secretary Chris Wright shuffled around and combined offices in a Kafkaesque restructuring. Short on workers and clear direction, the department appears unable to churn through its sizable budget.

Though Congress provides budgetary authority, agencies are left to allot spending for the programs under their ambit, and then obligate payments through contracts, grants, and loans. While departments are expected to use the money they’re allocated, federal staff have to work through the gritty details of each individual transaction.
As a result of its reduced headcount, DOE’s employees are each responsible for far more budgetary resources than ever before.
“DOE is facing its largest imbalance in its history,” Alex Kizer, executive vice president of EFI Foundation, told me. In fiscal year 2017, DOE budgeted around $4.7 million per full-time employee. In the fiscal year 2026 budget request, that figure reached $35.7 million per worker — about eight times more.
Part of that increase is the result of the unprecedented injection of funding into DOE from the 2021 Infrastructure Investment and Jobs Act and the 2022 Inflation Reduction Act. The pair of laws, which gave DOE access to $97 billion, comprised the United States’ largest investment to combat climate change in the nation’s history.
The epoch of federally backed renewable energy investment proved to be short-lived, however. Once President Trump retook office last year, his administration froze funds and initiated a purge of federal workers that resulted in 3,000 staffers (about one in five) leaving DOE through the Deferred Resignation Program. The administration canceled hundreds of projects, evaporating $23 billion in federal support.
While the One Big Beautiful Bill Act passed last summer depleted some of the IRA’s coffers and sunsetted many tax credits years early, it only rescinded about $1.8 billion from DOE, according to the EFI Foundation. Much of the IRA’s spending had already gone out the door or was left intact.
This leaves DOE in a strange position: Its budget is historically high, but its staffing levels have suffered an unprecedented drop.

Even before the short-lived Elon Musk-run agency took a chainsaw to the federal workforce, DOE struggled to hire enough people to keep up with the pace of funding demanded by the IRA’s funding deadlines. The Loan Programs Office, for example, was criticized for moving too slowly in shelling out its hundreds of billions in loan authority. According to a report from three ex-DOE staffers that Heatmap’s Emily Pontecorvo covered, the IRA’s implementation suffered from a lack of “highly skilled, highly talented staff” to carry out its many programs.
“The last year’s uncertainty and the staff cuts, the project cancellations, those increase an already tightening bottleneck of difficulty with implementation at the department,” Sarah Frances Smith, EFI Foundation’s deputy director, told me.
One former longtime Department of Energy staffer who asked not to be named because they may want to return one day told me that as soon as Trump’s second term started, funding disbursement slowed to a halt. Employees had to get permission from leadership just to pay invoices for projects that had already been granted funding, the ex-DOE worker said.
While the Trump administration quickly moved to hamstring renewable energy resources, staff were kept busy complying with executive orders such as removing any mention of diversity equity and inclusion from government websites and responding to automated “What did you do last week?” emails.
On top of government funding drying up, Kizer told me that the confusion surrounding DOE has had a “cooling effect on the private sector’s appetite to do business with DOE,” though the size of that effect is “hard to quantify.”
Under President Biden, DOE put a lot of effort into building trust with companies doing work critical to its renewable energy priorities. Now, states and companies alike are suing DOE to restore revoked funds. In a recent report, the Government Accountability Office warned, “Private companies, which are often funding more than 50 percent of these projects, may reconsider future partnerships with the federal government.”
Clean energy firms aren’t the only ones upset by DOE’s about-face. Even the Republican-controlled Congress balked at President Trump’s proposed deep cuts to DOE’s budget in its latest round of budget negotiations. Appropriations for fiscal year 2026 will be just slightly lower than the year before — though without additional headcount to manage it, the same difficulties getting money out the door will remain.
The widespread staff exit also appears to have slowed work supporting the administration’s new priorities, namely coal and critical minerals. LPO, which was rebranded the “Office of Energy Dominance Financing,” has announced only a few new loans since President Biden left office. Southern Company, which received the Office’s largest-ever loan, was previously backed by a loan to its subsidiary Georgia Power under the first Trump administration.
Despite Trump’s frequent invocation of the importance of coal, DOE hasn’t accomplished much for the technology besides some funding to keep open a handful of struggling coal plants and a loan to restart a coal gasification plant for fertilizer production that was already in LPO’s pipeline under Biden.
Even if DOE wanted to become an oil and gas-enabling juggernaut, it may not have the labor force it needs to carry out a carbon-heavy energy mandate.
“When you cut as many people as they did, you have to figure out who’s going to do the stuff that those people were doing,” said the ex-DOE staffer. “And now they’re going to move and going, Oh crap, we fired that guy.”