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Delaying congestion pricing is one of the worst climate policy decisions made by any Democrat in recent memory.

If it holds, then Governor Kathy Hochul’s decision today to delay congestion pricing indefinitely in New York will be a generational setback for climate policy in the United States.
It is one of the worst climate policy decisions made by a Democrat at any level of government in recent memory.
It is worse than the Mountain Valley pipeline, the 300-mile gas pipeline that Senator Joe Manchin of West Virginia got approved in 2022 in exchange for supporting the Inflation Reduction Act.
And it is worse than the Willow project in Alaska, the oil mega-project that President Joe Biden okayed last year under pressure from that state’s local and indigenous leaders.
It is so bad because it will set back the development of climate-friendly cities and rapid transit infrastructure in the United States for years if not decades. And it will deter other American cities from implementing the kind of time-saving, pollution-averting, anti-gridlock measure that the country desperately needs.
There is nothing good to be said for this decision. It is bad politics, bad economics, bad governance, and bad for the climate.
Let us briefly count the ways that it is destructive.
It is stupid coalition politics. Hochul has alienated her allies, including environmental groups, state budget hawks, and transit advocates. Bill McKibben, the longtime New Yorker writer who has become one of the country’s most famous climate activists, called Hochul’s decision “one of the most aggressive anti-environmental actions ever undertaken by a Democratic governor.”
In exchange, Hochul has delighted her Republican adversaries, who can praise her wise decision-making in the weeks to come — and therefore brandish their own bipartisan bonafides — but continue to campaign against congestion pricing through November. Congestion pricing is unpopular now, but in her fecklessness, Hochul has guaranteed that it will be a live issue in November.
It is nonsense budget politics. Hochul says that she has delayed congestion pricing because she is worried about the city’s recovery from the pandemic, but regardless of her reasons, she has now left a $1 billion hole in the transit authority’s budget. The New York Times reports that she wants to fill that hole by raising taxes on the state’s businesses.
But that means that she has taken a tax formerly charged to some New York residents and businesses — but which would also fall on New Jersey and Connecticut residents and businesses — and shifted it entirely to in-state entities. She has, in essence, cut taxes on out-of-state residents and raised taxes on New York businesses and consumers.
And instead of taxing the right to use roads in downtown Manhattan, which are a limited public resource, she will instead tax all business activity in the state. What good will that do for New York’s economy?
Those political and financial flaws might be forgiven if her decision was good for the planet. But don’t worry: It’s also bad climate politics.
Cars, SUVs, and trucks belch more climate pollution into the atmosphere than any other single economic activity in the U.S. Nearly 20% of America’s annual carbon pollution comes from individuals and families driving their private vehicles around on roads and highways. This is a far larger share of national pollution than is generated by more famous climate villains, such as air travel.
We have good ways of dealing with all that carbon pollution. In suburbs, small towns, and rural America, the best way to deal with that tailpipe pollution is to gradually transition from gasoline-burning cars to electric vehicles. In some places, the country can also experiment with using experimental, climate-friendly liquid fuels.
But in cities, people have better and cheaper options than getting EVs. We can stop requiring people to drive everywhere and encourage them to walk, bike, and take public transit instead. That will require, at times, treating the use of roads in city centers as the limited public resource that it is — which means charging cars and trucks to enter the most crowded downtown areas of certain cities at certain times of the day.
That’s what congestion pricing is: a way of encouraging cities to grow in pro-climate, pro-environmental ways. Such a policy has already been successfully implemented in London, Singapore, and other congested cities. Even as an urban car owner, I long wanted the city where I lived for a decade — Washington, D.C. — to adopt a similar policy. After all, when Stockholm started its congestion fee, the rate of asthma attacks among its children dropped by half.
So I looked forward to the start of congestion pricing in New York City, America’s biggest, densest, and most transit-friendly city. New York was bushwhacking a trail for everyone else to follow: If congestion policy was a success there, then other American cities could experiment with it in some form.
By pausing that trial before it has even begun, Hochul has essentially frozen our ability to experiment with congestion pricing anywhere else in the country. By shuttering the policy in New York, she has poisoned pro-climate urban politics everywhere. Now people will say: You saw what happened when New York tried to do congestion pricing. Do you really want to try that here?
In the past, when national Democrats have approved new pipelines or oil projects, they have argued that those projects will not affect the country’s carbon pollution because only demand for fossil fuels, and not the supply of them, drives carbon emissions. But what makes congestion pricing so powerful is that demand is precisely what it targets. Congestion pricing makes buses run faster, pays for the subway system, and pushes people and businesses to consider the social cost of their driving before they get in the car.
Congestion pricing, if implemented widely, can actually conserve fossil fuels and cut carbon emissions. Now Hochul has halted its progress everywhere.
She has made, in other words, a local mistake with national and even global consequences. It is such a foolhardy error that it instantly recasts Kathy Hochul’s climate record as governor.
Hochul has previously been seen as a center-left governor playing a difficult but moderate environmental hand. But is that really her record? She has struggled to build wind farms off the coast of New York, even though it is essential to decarbonizing the state’s power grid. She has so far failed to pass the NY HEAT Act, which would help the state transition away from using fossil fuels to heat its buildings. She has even failed to pass little climate measures that would fund the state’s more modest climate goals.
I would compare her to Senator Joe Manchin, the fossil-fuel-friendly West Virginia lawmaker who repeatedly refused to vote for Biden’s climate policy — except at least Manchin put his political reputation on the line when it mattered and ultimately negotiated, and voted for, the Inflation Reduction Act. At least Manchin has many qualities to recommend him: He was canny, risk-taking, proud, and courageous when it counted. Hochul is just a loser.
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The Trump administration has asked a court to re-examine a key permit for Revolution Wind in Rhode Island.
This is Heatmap Daily, an evening news digest written by our executive editor. Subscribe here.
Updated, 11:05 p.m. ET
At the end of the day, the biggest threat to the bipartisan permitting deal probably isn’t green groups, the fossil fuel industry, or monopoly utilities. It’s President Trump himself.
The legislative proposal is meant to constrain the president from tampering with clean energy projects — and if it passes, then some of its provisions seem like they could do so. But in order for it to pass, Trump must adhere to the deal that he brokered with the bill’s Senate Democratic negotiators, Sheldon Whitehouse of Rhode Island and Martin Heinrich of New Mexico.
Under that deal, the Trump administration must allow the 30 wind farms held up by what is normally a Department of Defense box-checking exercise to proceed. (Trump himself agreed to allow these projects to move forward, according to Politico reporting from last month.) More broadly, the administration has to make a show of good faith that it will return to what Whitehouse has called “regular order” on wind and solar permits. That could include approving a longer list of more than 200 onshore wind projects held up in the queue.
That somewhat informal deal is now facing its biggest test yet. On Friday, the Department of Justice filed a motion in court to re-examine a key permit granted to Revolution Wind, a nearly complete offshore wind farm being built off the coast of Rhode Island. The filing was first reported by Bloomberg.
Revolution Wind is one of six Biden-era offshore projects that is now operating or at least still moving forward. It could eventually produce as much as 700 megawatts of electricity. (Other offshore wind projects have accepted Trump’s $4 billion payouts.)
This isn’t the first time that the Trump administration has gone after this particular offshore project: The White House fought, and then resoundingly lost, an effort to stop work on Revolution Wind last year. But the timing of the filing — and the fact that it’s happening in Senator Whitehouse’s backyard — could make this filing far more significant.
In a post on X, the White House energy official Jarrod Agen seemed to play down the legal move without fully disowning it.
“This is an old lawsuit brought by the local community—who had serious concerns about this project—against the Biden Administration!,” he wrote. (The lawsuit in question was filed by Green Oceans, an anti-wind-energy group. Its law firm has what The New York Times described as “close ties” to the conservative legal movement.)
The White House still supports permitting reform, Agen added, adding that “the media should stop their attempts to blow up a GREAT deal for the American people!”
Sorry, Jarrod — we’re just doing our job. After we initially published this story, Senators Whitehouse and Heinrich sent a joint statement: “Frankly, we need to get permitting certainty in law, and this proves it,” they said. “In the meantime, the administration needs to start showing good faith progress on wind permits.”
A bipartisan group of senators proposed major reforms to the country’s environmental laws last month in an effort to speed up the federal approval process for energy projects of all kinds. If it passes, one of the Bipartisan American Affordability and Jobs Act’s biggest changes would be transforming the U.S. court system’s role in federal environmental reviews.
The bill would constrain who can challenge federal environmental decisions in court, which courts can hear those challenges, what plaintiffs can argue in those cases, and what remedies are available when the plaintiffs win. In particular, it would become a lot more difficult — though not impossible — for outside groups to stop construction on a project or vacate a permit if they deemed it to be environmentally risky.
Part of the motivation for the bill, at least among Democrats, is the idea that the National Environmental Policy Act, or NEPA, has become a significant obstacle to building clean energy projects and the infrastructure required to connect them to the grid. The bill includes a number of changes to NEPA that would expedite environmental reviews and prevent legal challenges under NEPA from dragging out project timelines.
But the bill’s restrictions on judicial remedies may be the most significant change, several legal experts told me. “My perhaps overly simplistic view, perhaps a really cynical view, is that the remaining 100 pages of the bill devoted to NEPA are all going to be irrelevant in light of that remedy provision,” said Matthew Littleton, a lawyer who previously served as deputy assistant attorney general at the U.S. Department of Justice’s Environment and Natural Resources Division under the Biden administration.
NEPA is an information-gathering statute. It says that when the federal government makes certain decisions, such as issuing permits or regulatory rules, it must consult with all of the agencies with relevant expertise, invite public comment, and, if the decision could have significant effects on the environment, conduct a wide-ranging assessment of those effects that includes comparisons to alternative actions.
Depending on the decision at hand, the government may have to do some of this analysis under other environmental laws, such as the Clean Air Act and Clean Water Act, but those requirements are narrower. NEPA fills in the gaps. While a Clean Air Act analysis may look at whether a project complies with federal pollution limits, a NEPA analysis would assess the broader effects of the pollution on local communities and surrounding wildlife, and consider whether locating the project elsewhere could accomplish the same goals with reduced risk.
While NEPA can inform an agency’s decision, the law does not require the agency to act on that information. If a NEPA review of an oil leasing program turns up substantial risks, for example, the government can still move forward with it unchanged. If an environmental group sues the government for not considering all of the relevant impacts, or studying enough alternatives, or getting some aspect of the analysis wrong, however, the court can vacate the agency’s decision, or at least issue an injunction on the lease sale while the agency addresses the issue.
A Supreme Court decision last year already significantly narrowed NEPA, giving agencies more discretion to decide how much environmental analysis they need to do on a project’s upstream and downstream effects. Experts expected the ruling to make it much harder for outside groups to win an injunction on a project or vacate a permit.
The new bill would go much farther. If communities or other stakeholders sue the government for violating NEPA and win, the courts could no longer issue an injunction or vacate the government’s decision. The bill would leave the courts with a single remedy: forcing the agency to address whatever gap in its analysis the lawsuit revealed.
To Littleton, this change would make NEPA more or less irrelevant. Today, he explained, agencies and developers face the risk that if they do not do a thorough job complying with NEPA, the courts could suspend their decisions, vacate their permits, or pause construction on their projects. It’s hard to know how big of a role that risk plays in agency decision-making, but if it disappears, so too does the incentive for anyone to spend time on a NEPA analysis.
Agencies are under-resourced and have a lot on their plates, Littleton said. “If at the end of the day you know a court is not going to stop you, even if you completely ignore the statute, you’re going to take the action as quickly as you can, consistent with your other obligations.” In other words, the worst that could happen is that a federal court tells the relevant agency to go back and do some more paperwork while construction continues.
The bill would make the same changes to the National Historic Preservation Act, a similar procedural law that requires agencies to study a decision’s effects on properties of cultural or historic significance. “If Congress has decided that NEPA and the NHPA have outlived their usefulness or do more harm than good, people should be willing to own that and say it and explain why that’s so,” Littleton said. “And if it’s not so, then maybe they need to figure out how to have a far narrower NEPA or NHPA review, but something where it actually matters if you don't do it.”
To be clear, none of this means there will be no way to stop a project from being built or to vacate its permits. Outside groups can still challenge agency actions under the Administrative Procedure Act, Alex Mechanick, an assistant professor at Johns Hopkins and a former senior counselor in the Office of Management and Budget under the Biden administration, told me. The APA is a larger umbrella law that says agencies cannot violate the Constitution or federal regulations or act arbitrarily or capriciously.
“Arbitrary and capricious action is already unlawful under the APA and could lead to agency action being vacated or enjoined regardless of BAAJA,” Mechanick said. A court might find that an agency violated the APA if a decision had undeniably worse environmental costs than benefits, if a less damaging option offered the same benefits, or if the agency simply chose not to analyze a relevant aspect of the decision. If the Interior Department was considering a new oil and gas leasing plan and didn’t consider effects on local wildlife, a court might deem that arbitrary and capricious. If the agency studied those effects, found significant risks, and then ignored them entirely with no explanation, that could also constitute a violation of the APA.
Littleton didn’t disagree with Mechanick’s assessment. If the bill passes, he said, the NEPA process may become the mechanism agencies use to comply with the APA rather than an end in itself.
The bill makes a more far-reaching change to legal challenges under the Clean Water Act. That law requires developers to secure a Section 404 permit when their project involves placing dredged materials into a body of water or wetland. It asks the Army Corps of Engineers to collect public comments, analyze the environmental impacts, and evaluate alternatives — much like NEPA. In this case, however, the analysis is not just procedural. Depending on what it reveals, the Corps may be legally required to deny the permit.
As with NEPA and the NHPA, the Senate bill would remove a federal court’s ability to vacate a Section 404 permit if it finds a deficiency in the Army Corps’ analysis. But the bill also specifically prevents vacatur for challenges under the APA. In either case, there is an exception for if the court finds that the “activities authorized under the permit would present an imminent and substantial danger to human health or the environment.”
Mechanick called this a “timing rule,” since the court’s options will depend on how far along the project is. The agency either has enough time to act before harm is imminent, or it doesn’t. “I don’t understand why you should have to wait until the harm is imminent to enjoin the agency,” he said, “but I suppose the idea is that this is a lighter touch remedy until it’s really a do-or-die moment.”
On Korea’s Westinghouse wishes, a lithium deal, and British heat pumps
Current conditions: New York City’s temperature is set to rise as high as 80 degrees Fahrenheit this week before plunging as the coldest weather so far this season blows into the Northeast • Temperatures in Denver have been above 80 degrees for the past 11 days straight • Nearly 200,000 households, mostly in Florida, are still without electricity after Hurricane Isaias.
In theory, news of President Donald Trump’s deal with Russia to pump millions of tons of diesel into the global market should have eased oil prices. Instead, all three major crude benchmarks spiked Monday by nearly 1.5%. Only West Texas Intermediate, the U.S. metric that has largely evaded the worst knock-on effects of conflict in the Middle East, remained below $100 per barrel. The hike came as the Houthi attacks on Saudi Arabia over the weekend weighed heavily on investors’ minds, eclipsing whatever impact the diesel deal could have had.
Speaking at an industry summit in Riyadh, from which executives from Western oil majors bowed out at the last minute following missile strikes on the airport in the Saudi capital, the head of the country’s state oil company warned that not even Saudi Arabia had the capacity to protect all the supply routes off its coasts for getting hydrocarbons from the region to the world. “No nation, even one as capable and confident as ours, can safeguard them alone,” Aramco CEO Amin Nasser said, according to Arab News.
TotalEnergies took more than $1 billion from the Trump administration to kill off its offshore wind projects. But don’t take that as a sign the French energy behemoth is abandoning American renewables. The company’s joint venture with private equity giant KKR announced a deal to add 700 megawatts of solar to its portfolio of 1.4 gigawatts. The $1.2 billion acquisition includes three utility-scale solar farms in Texas and Ohio that are expected to reach commercial operation in the first quarter of next year.

South Korea is in a bind. The Korea Electric Power Corporation, through its subsidiary Korea Hydro & Nuclear Power, represents the most competent financier and builder of nuclear reactors anywhere in the democratic world, having constructed the United Arab Emirates’ debut atomic power stations relatively on time and on budget compared to U.S., French, and British projects. But the leading Korean reactor, the APR1400, allegedly borrowed from the American nuclear champion Westinghouse’s pressurized water reactor design. A yearslong legal feud ended last year with a settlement that bars the Koreans from bidding on projects in Europe or North America. In a deal this month with the Trump administration to stave off tariffs, Seoul has agreed to help finance and construct six Westinghouse AP1000s and two of its own APR1400s in the U.S., giving the Americans a leg up on nuclear construction and the Koreans a foothold in North America.
In South Korea, where the Westinghouse settlement has widely been considered unfair, the government is signaling other plans to gain more leverage. For starters, KEPCO’s chief executive Kim Dong-cheol said the claim that the settlement requires the company to pay Westinghouse $2 billion per nuclear plant to use its technology was misunderstood. “It is true that $2 billion is the ceiling, but it does not mean we will pay all of it,” he said. But the more eyebrow-raising detail in his interview with the financial newspaper Business Korea is that KEPCO is considering a plan to acquire an equity stake of between 5% and 10% in Westinghouse. Rumors of a potential deal to buy part of Westinghouse have been circulating in the Korean press for weeks now. Anything seems to be on the table these days, but when I have asked multiple sources on the U.S. side about it, all of them shrugged off the possibility to me.
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When The New York Times ran a glowing profile of the lithium startup EnergyX back in 2021, industry sources at the time mocked the coverage to me as too credulous — a sign of how unsophisticated the popular American press was at writing about critical minerals at the time. The Wall Street Journal glazed the firm’s chief executive, Teague Egan, in its own profile three years later. So it was with light surprise and amusement that I read Reuters reporter Ernest Scheyder’s latest story about the company: EnergyX just signed a $2 billion binding offtake to supply the commodities giant Trafigura with the battery metal from Chile and the U.S. It’s one of the largest deals ever tied to direct lithium extraction, the technology EnergyX is trying to commercialize, which uses less water than standard methods of mining the metal. The 10-year contract comes amid growing demand from the stationary battery storage market as the grid and data centers eat what unsteady sales of electric vehicles has left on the plate.
The British government plans to cut hundreds of millions of dollars from the national program to upgrade boilers in England and Wales, providing £9,000, or nearly $12,000, to finance the switch to heat pumps. The cuts, which the Financial Times reported Monday had drawn a backlash against the ruling Labour Party, are part of a broader bid by Prime Minister Andy Burnham to slash £2 billion in the budget to make way for more military spending. The reductions began in June under former Prime Minister Keir Starmer with a study to identify potential cuts. Starmer singled out the Department of Energy Security and Net Zero, particularly after the agency received a 16% annual increase to fund projects such as the nuclear buildout at Sizewell C, carbon capture infrastructure, and insulation to make homes more energy efficient.
The move is sure to ripple across the climate policy world. Roughly a week ago, Daniel Aldana Cohen, an assistant professor at the University of California at Berkeley, was extolling the benefits of ramping up U.S. production of heat pumps in response to soaring heating prices this winter due to the fossil fuel supply crunch. “Every year that we don’t do a wartime mobilization on heat pumps, we’re ruining people’s lives,” the early advocate of a Green New Deal wrote in a post on X. “Heat pumps will always outperform heating oil, cut costs, add summer AC. And would be fantastic for labor, small businesses, worker co-ops.”
As quickly as a spark of atmospheric electricity strikes, the Ford F-150 Lightning disappeared, with the final model of the all-electric pickup truck rolling off the assembly line last year. Now, Bloomberg reports, “it has become one of the most coveted cars in America and a glowing ember in the red-hot market for used electric vehicles.” The price of a used Lightning is 50% to 60% of the sticker price, which one expert told the newswire “is really a sweet spot.”