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If there’s one climate policy you’re likely to hear about in the debt ceiling deal, it’s the Mountain Valley Pipeline.
The 304-mile pipeline, which will link West Virginia’s booming gas fields to the East Coast and Texas, essentially received automatic approval under the bipartisan deal. The bill compels federal agencies to approve the pipeline and then shields those permits from judicial review, all but guaranteeing the project’s eventual completion.
If nothing else, the deal brings the saga over the Mountain Valley Pipeline to a close almost a year after it began: The White House initially agreed to support the project last year in exchange for Senator Joe Manchin of West Virginia’s support for Biden’s climate law. But neither Manchin nor Biden could get a bill containing the pipeline through Congress last year as part of a larger package of permitting reforms. Manchin persevered, and the pipeline wriggled into the deal over the weekend thanks to House Republicans and oil-and-gas lobbyists. Manchin, it seems, finally has his pipeline.
The project isn’t the most important climate item in the deal. That distinction has to go to the deal’s preservation of the Inflation Reduction Act, which will ensure hundreds of billions of dollars go to clean energy and infrastructure over the next decade. Nor is it the deal’s worst blow to the climate: As I wrote yesterday, Democrats’ failure to secure any power-grid reform takes that title.
Yet the Mountain Valley Pipeline, or MVP, is the item that environmental groups have focused on the most. “Allowing this deal to advance sets a dangerous precedent,” Ben Jealous, the Sierra Club’s executive director, said in a statement. “We can pay America’s bills without undermining bedrock environmental protections or fast tracking the fracked gas Mountain Valley Pipeline.”
So I was curious: How big a deal is the MVP? When completed, it will transmit 2 billion cubic feet of natural gas a day: What does that actually mean for the country’s natural gas transmission?
Well, here’s a potentially helpful chart:
Energy Information Administration/Heatmap
This is the Energy Information Administration’s chart of new natural-gas pipeline capacity from 1995 to 2022 with my addition. I’ve added the MVP’s capacity at the right. As you can see, the MVP alone will add more pipeline capacity than the entire U.S. added last year — but that’s partially because the country added much less capacity in 2022 than it has in any year since records began in 1995.
I’ll be honest that the chart helps me think more clearly about the project, but not in a way that’s easy to describe. The Mountain Valley Pipeline is a medium-largeish pipeline — big enough to single-handedly expand the country’s ability to move natural gas, but not so big that it will change the fundamental trend that fewer new pipelines are getting built every year.
The MVP’s most important effect may not be its size, but its strategic location: By connecting the productive Utica and Marcellus shale fields in Appalachia to the Transcontinental pipeline, a massive backbone conduit that links New Jersey to the Rio Grande Valley, it will make it easier for cheap natural gas to reach the population centers — and export terminals — of the Eastern Seaboard and Gulf Coast. That will, in turn, spur a modest increase in natural-gas drilling, which could increase American emissions by roughly 6 to 16 million metric tons a year, according to an estimate from The Washington Post.
The Inflation Reduction Act, by comparison, will eliminate roughly 660 million tons a year by 2030. So preserving the IRA is worth the carbon cost of this pipeline — but it would be better, of course, not to have to make such a choice at all.
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On breaching 1.5, NYC’s new EV chargers, and deforestation
Current conditions: Unusually hot and dry weather in Ivory Coast has farmers worried about a looming shortage of cocoa beans • Construction on one of Britain’s busiest roads has been extended by nine months due to extreme weather • The first of three winter storms hitting the U.S. this week will arrive today, bringing snow to the Mid-Atlantic region.
Two new studies published this week concluded that we’re probably already beyond the 1.5 degrees Celsius global warming threshold outlined in the Paris Agreement. Last year was the first full calendar year with global temperatures averaging more than 1.5C above pre-industrial averages, but scientists have been divided on whether this was a short-term anomaly or the beginning of a new and irreversible era. The new studies, both published in the journal Nature Climate Change, used different methodology to investigate this question, but came to the same conclusion: “Most probably Earth has already entered a 20-year period at 1.5C warming.” The findings echo research published last week from famed climate scientist James Hansen, who predicted that warming will ramp up by 0.2 or 0.3 degrees Celsius per decade to breach 2 degrees Celsius in warming by 2045. Last month was the hottest January on record, at 1.75 degrees Celsius above pre-industrial averages.
Rivian is making its electric commercial van available to all business customers that want to electrify their fleets. Up until now the vans have been available only for Amazon, but the EV maker said yesterday that exclusive partnership has ended. The vans come in two sizes: the smaller RCV 500 (available for $79,900) and the larger RCV 700 (for $83,900). Both are eligible for the $7,500 tax credit. “This will be one of Rivian’s greatest tests yet,” said Mack Hogan at InsideEVs. “If it can prove to business owners that it can build robust, dependable vans that can be serviced in the field, it should have no issue winning retail customers’ trust when it launches the R2 and R3.”
Rivian
New York State is giving $60 million to EV infrastructure startup Revel to build 267 DC fast chargers across NYC by 2027. Gov. Kathy Hochul announced the loan, which comes from the NY Green Bank, on Monday, saying “it is critical that we continue to build electric vehicle infrastructure to ease the shift to EV ownership for more New Yorkers, especially those in urban areas.” The chargers will be spread across nine sites, five of which will be completed within the next year. Those include 44 chargers near LaGuardia Airport, 24 chargers near JFK Airport, as well as sites in Queens, Brooklyn, and the Bronx. The public chargers will be open 24/7. This marks the first EV charging infrastructure loan from the NYGB.
The fallout continues from last month’s fire at the world’s largest battery storage plant in Texas. Four people who live near the site of the blaze are suing Vistra Energy, which owns the Moss Landing Power Plant, and a handful of other energy companies for insufficient safety measures. Public awareness about the possible health hazards of the fire are also growing, with The New York Timesreporting on several studies that have detected toxic levels of heavy metals in soil samples surrounding the facility, and spotlighting complaints from local residents who say they have experienced headaches, sore throats, nosebleeds, and other symptoms in the weeks following the disaster. The fire raises questions about the safety of large battery storage facilities, which store excess energy to be deployed on-demand and are seen as essential to decarbonizing the grid. The International Energy Agency has said that “grid-scale batteries are projected to account for the majority of storage growth world wide.”
India, the world’s third largest producer of greenhouse gas emissions, does not plan to submit new targets for limiting those emissions, Bloombergreported. Under the Paris Agreement, nations are required every five years to submit new climate plans – known as nationally determined contributions – that outline emissions reduction goals and strategies for hitting those goals. But India apparently plans to focus its NDC on climate change adaptation measures. Yesterday was the official deadline for all Paris Agreement parties to submit their updated NDCs, but most countries are running behind.
Deforestation levels in Colombia in 2024 rose slightly from 2023, but were still the third lowest in 23 years.
The new president is annihilating his predecessor’s energy policy.
Every time the White House changes hands from one party to another, some policies toggle back to what they were before, a reset meant to restore the status quo ante. The best-known example may be the Mexico City policy, which forbids U.S. foreign aid funds from going to any organization that performs or even gives information about abortions; since it was first instituted under Ronald Reagan, every Democratic president has revoked it and every Republican president has reestablished it. The change is as predictable as the sunrise.
But presidents also hope that even if their party loses the next election, they will have created more durable policy change. If the outgoing president has been clever enough at creating smart design, administrative momentum, and political reality, even a hostile new president may find it difficult to roll back everything their predecessor did. That was certainly the Biden administration’s goal when it came to climate policy. Some even hoped that President Trump would just be too preoccupied with the things he cares more about — especially deporting immigrants and imposing tariffs — to devote too much time and effort to undoing the progress that has been made on climate.
In other words, Trump could have taken much the same approach as Biden, except with the favored industries reversed. Biden worked hard to boost renewable energy, but apart from a few high-profile moves like the cancellation of the Keystone XL pipeline and a temporary suspension of approvals for new liquified natural gas export facilities, he mostly left the fossil fuel industry alone. The result was a boom time for oil and gas, with record production and almost limitless profits. Turn it upside down, and you’d have an administration that gives fossil fuel companies what they want — relaxed regulations, speeded-up permits, the opening of federal lands for more drilling — without a frontal assault on renewables.
Unfortunately, Trump has not chosen that mirror-image course. Instead, he seems determined to undermine, roll back, and impair the transition to clean energy in almost every way his administration can think of. As it has in one area after another, the Trump government is acting with a head-spinning speed and ambition, as though it will count itself as successful only if the entire renewables industry lies in ruins by the end of its term.
This is a strange approach to take if Trump actually believes there is an “energy emergency” that demands a mobilization to produce dramatically more power, as he declared in an executive order he signed on his first day in office. But that order made clear the administration’s belief that wind and solar are literally not energy; it states that “The term ‘energy’ or ‘energy resources’ means crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals.”
Trump didn’t write the order himself, but it certainly reflects the sweeping policy moves his administration has made against renewable energy and environmental enforcement, including the following:
All that is in addition to the expected policy reversals, such as withdrawing the U.S. from the Paris Agreement, which Trump abandoned in his first term and Biden rejoined. Even including those, it’s still not a comprehensive list.
For years, Republicans (including Trump) have described their approach to energy as “all of the above,” i.e. that every kind of energy, including fossil fuels, should be developed as much as possible. That phrase is clearly no longer operative, as the administration is showing an unmitigated hostility to solar and wind power. The administration also seems determined to arrest the growth of the electric vehicle industry, which raises the question of how one particular interested party — Elon Musk — may be reacting to these moves.
Whether or not you think this question has already been settled depends on how much you trust Musk as a reliable exponent of his own true beliefs. On the campaign trail, he boasted that killing the $7,500 EV tax credits would only help Tesla by damaging its competition. After the election, when asked about the tax credit during a visit to Capitol Hill, Musk told reporters, “I think we should get rid of all credits.” But there are other EV-related policies Trump has trained his crosshairs on, including California’s ability to set more stringent fuel efficiency standards than the federal government, granted under a waiver from the Environmental Protection Agency. The law allows companies to buy and sell credits in order to meet the required mix, and as a maker of entirely zero-emission vehicles, Tesla has plenty of credits to sell. As of last November, selling those credits accounted for more than 40% of Tesla’s net income for the year to date.
So far, Musk hasn’t commented on the subject, but it isn’t hard to imagine that if he tried to convince Trump to reverse some of these decisions and pursue a true “all of the above” strategy, Trump would be highly persuadable. But Musk is no longer an ally of the renewables industry, and his interest in the electrification of the nation’s auto fleet begins and ends with his own company.
Part of the theory underlying Biden’s limited moves against the fossil fuel industry was that the energy transition has so much momentum that it can’t be stopped — that, while every day we continue burning oil and gas makes climate change worse, the eventual arrival of a net-zero-emissions future is inevitable. That reality hasn’t changed, but the Trump administration is determined to delay it as long as possible. And in order to do so, it’s bringing the same commitment to rapid, aggressive, destructive policy change it’s deploying across the entire federal government.
Dozens of people are reporting problems claiming the subsidy — and it’s not even Trump’s fault.
Eric Walker, of Zanesville, Ohio, bought a Ford F-150 Lightning in March of last year. Ironically, Walker designs and manufactures bearings for internal combustion engines for a living. But he drives 70 miles to and from his job, and he was thrilled not to have to pay for gas anymore. “I love it so much. I honestly don’t think I could ever go back to a non-EV,” he told me. “It’s just more fun, more punchy.”
But although he’s saving on gas, Walker recently learned he’d made a major, expensive mistake at the dealership when he bought the truck. The F-150 Lightning qualified for a federal tax credit of $7,500 in 2024. Walker was income-eligible and planned to claim it when he filed his taxes. But his dealership never reported the sale to the Internal Revenue Service, and at the time, Walker had no idea this was required. When he went to submit his tax return recently, it was rejected. Now, it may be too late.
Walker is not alone. Dozens of users on Reddit have been sharing near-identical stories as tax season has gotten underway — and it’s only early February. It is unclear exactly how many EV buyers are affected. What we do know is that it will be up to the Trump administration’s Treasury Department to decide whether any of them will get the refund they were counting on — the same administration that wants to kill the tax credit altogether.
The problem dates back to a change in the process for claiming the tax credit. For the 2023 tax year, dealers had until January 15, 2024 to report eligible EV sales to the IRS. For 2024, however, the IRS introduced a new, digital reporting system and new deadlines. Starting in January 2024, if a customer bought an eligible vehicle and wanted to claim the tax credit, dealerships were required to file a report within three days of the time of sale to the IRS through a web portal called Energy Credits Online.
This change coincided with another: Buyers now had the option to transfer the credit to their dealership instead of claiming it themselves. The dealer could then take the value of the credit off the price of the car and get reimbursed by the IRS. This was voluntary on the dealerships’ part, and many opted in. By October, more than 300,000 EV sales had used this transfer option, according to the Treasury Department. But apparently there were also many dealers who didn’t want to bother with it. And at least some of them never bothered to learn about the online portal at all.
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Charlie Gerk, an engineer living in the suburbs of Minneapolis, bought a Chrysler Pacifica plug-in electric hybrid in February after his wife had twins. Unlike Walker, Gerk knew all about the workings of the tax credit, and he wanted to get his discount up front. But the dealership he was working with — a smaller, family-run business — had not gotten set up to do it. “He’s like, ‘We sell six EVs a year, we’re not going to take the time to sign up for that program,’” Gerk recalled the salesman saying. Gerk decided to claim the tax credit himself, and the dealership even gave him a few hundred bucks off the car since he’d have to wait a year to see the refund. He then emailed the dealership instructions from the IRS for reporting the sale through the online portal, and the dealership assured him it would submit the information. It sent Gerk a copy of form 15400, an IRS “Clean Vehicle Seller Report,” for him to keep for his records — except that the form was dated 2023. When Gerk inquired about it, the finance manager told him it was just because it was still so early in the year, and that they would make sure it got filed appropriately online.
Fast forward to one year later, and Gerk came across a post in the Pacifica Reddit forum from someone whose claim was rejected by the IRS because their dealer failed to report the sale. “I logged into my online dashboard for the IRS, and sure enough, the vehicle’s not there,” Gerk told me. “If it was filed appropriately, it would have shown on my online dashboard that I had an EV clean vehicle credit for 2024, and it’s not there.”
Gerk spoke to his dealership, which said it would look into the situation. He forwarded me an email exchange between the IRS and his dealership in which a representative from the IRS’ Clean Vehicle Team said it was probably too late to fix. “The open period for any unsubmitted time of sale reports is closed,” the staffer wrote. “We are expecting some Energy Credit Online (ECO) updates so contact us via secure messaging in the Spring for additional information.”
Some users on Reddit who, like Gerk, were aware of the reporting requirements when they bought their EVs, have shared stories about visiting more than a dozen dealerships before finding one that was registered with ECO and willing to file the paperwork. Others who didn't know about the rules have recalled inquiring about the tax credit at their dealership and being told they could simply claim it on their taxes. They only found out when they tried to submit their tax paperwork on TurboTax or another e-filing system and received an error message informing them that their vehicle is not registered in the IRS database.
Some blame the dealerships for misleading them and are wondering if they have grounds to sue. Others blame the IRS for not adequately informing customers or dealers about the rules.
“My frustration lies with the fact the IRS would even allow this to be an option,” Gerk told me. “If you’re going to allow the credit to be taken by me, I have to be dependent on my dealer doing the right thing?” (Gerk asked that we not share the name of his dealership.)
I spoke with a former Treasury staffer who worked on the program, who told me that the agency went to great lengths to educate dealerships about the new online portal and filing requirements, including hosting webinars that reached more than 10,000 dealerships and a presentation at the National Automobile Dealership Association’s annual convention in Las Vegas. The agency put up pages of fact sheets, checklists, and other materials for dealers and consumers on the IRS website, they said. But the IRS doesn’t have a marketing budget, and also relied heavily on NADA, the Dealership Association, for help getting the word out.
NADA did not respond to multiple emails and phone calls asking for comment. I also contacted several of the dealerships who sold EVs to buyers who are now having their tax credit claims rejected, none of which got back to me.
Many of the affected buyers are trying to get their dealerships to contact the IRS and see if they can retroactively report the sales, as Gerk did. Some are having more luck than others. When Walker contacted his dealership in Cleveland, Ohio, to see if there was anything it could do to help him, it still seemed to have no idea what he was talking about. Walker forwarded me a response from his dealership asking him if he had spoken to his accountant. “My sales desk is pretty insistent on that this is something your accountant would handle,” it said. (Walker did not want to disclose the name of his dealership as he is still trying to work with them on a solution.)
I reached out to the Treasury Department with a list of questions, including whether this issue was on its radar and what consumers who find themselves in this situation should do. The agency confirmed receipt of the request, but had not gotten back to me by press time. We will update this story if they do. There are reports on Reddit of EV buyers having a similar issue claiming the tax credit in 2024 for purchases made in 2023. Some filed their taxes without the EV credit and then submitted appeals to the IRS after the fact, with seemingly some success.
Buyers stuck in this situation have few other places to turn. Some Reddit users have posted about reaching out to their representatives, who offered to contact the IRS on their behalf. One challenge, as noted by the former Treasury staffer I spoke with, is that unlike the dealers, who have NADA, there is no consumer advocacy group for electric vehicle buyers who can engage with lawmakers and the Treasury and request a solution.
“I don’t necessarily need the money,” Walker told me. “It was just gonna go towards some more student loans — I’m just trying to pay down all of my debt as soon as possible. So I didn’t need it. But it would have been certainly something nice to have.”