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On modernizing permitting, IRA funds, and a revolt at BP

Current conditions: Central and northeast New Mexico will face “extremely critical fire conditions” over the next two days • Thousands of Iraqis are suffering from respiratory problems caused by a severe sandstorm • Temperatures could hit 120 degrees Fahrenheit in Balochistan, Pakistan, during a heat wave this week.
On Tuesday, President Trump signed a memorandum ordering the “maximum use of technology in environmental review and permitting process for infrastructure projects of all kinds.” The order also directed the Council on Environmental Quality, which oversees the implementation of the National Environmental Policy Act, to put together a process for modernizing technology in environmental reviews. Thomas Hochman, the director of infrastructure policy at the Foundation for American Innovation, a center-right think tank, celebrated the move by the Trump administration, writing on Twitter “it’s high time to eliminate paper-based reviews, modernize permitting technology (which is often as old as the laws themselves), and experiment with different permitting tools.”
In February, Trump also signed an executive order that gutted CEQ’s authority to oversee NEPA, a move Sierra Club’s senior attorney Nathaniel Shoaff called “rash, unlawful, and unwise.” As my colleague Katie Brigham has written, in theory that order would expedite “projects such as solar farms and clean energy manufacturing facilities; in reality, under the Trump administration, the benefits could redound to fossil fuel infrastructure first and foremost.”
A federal judge has ordered the Trump administration to immediately lift its freeze on billions of dollars tied to the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. In her ruling, Judge Mary McElroy of the U.S. District Court for the District of Rhode Island, a Trump appointee, called the pause “arbitrary and capricious,” and added that federal agencies such as the White House’s Office of Management and Budget “do not have unlimited authority to further a president’s agenda, nor do they have unfettered power to hamstring in perpetuity statutes passed by Congress during the previous administration.”
The lawsuit was brought by conservation and nonprofit groups that had received grants under the two laws, although McElroy’s order will apply to all frozen IRA and IIJA grants in the country. “Today’s ruling marks a crucial victory for the rule of law and ensures these vital resources will flow to the people and projects Congress intended to support,” Skye Perryman, the president and CEO of Democracy Forward, one of the plaintiffs, said in a statement.
A group of BP shareholders, including UK pension provider National Employment Savings Trust and the financial services company Legal & General, announced they will vote in opposition to the re-election of the company’s chairman, Helge Lund, later this week. The move follows BP’s retreat from its goal of dramatically cutting oil and gas production after the company recorded its highest profits ever.
“While it’s disappointing to see BP rowing back on their climate pledges, what’s particularly worrying is they haven’t gone back to shareholders and given us a chance to vote on such a significant decision,” Diandra Soobiah, NEST’s head of responsible investment, told The Guardian last year. L&G, a 1.8% stakeholder in BP, added that it is “deeply concerned” about the retreat toward oil and gas and away from renewables investment. The decision to oppose Lund is, however, “largely symbolic,” Net Zero Investor writes, noting that the chairman has already announced plans to step down next year. BP’s annual general meeting will be held on Thursday.
Environmental Protection Agency Administrator Lee Zeldin announced Tuesday that the EPA is launching a probe into the geoengineering startup Making Sunsets, citing alleged violations of the Clean Air Act. The small South Dakota-based company uses balloons to release sulfur dioxide into the atmosphere in order to reflect the sun and offset warming caused by carbon dioxide; it finances the operation by selling credits for each gram of released SO2. Geoengineering — and Making Sunsets more specifically — remain highly controversial, with many environmental experts calling it a “bad idea.” But Daniele Visioni, a climate scientist specializing in aerosols, wrote on Bluesky that while Making Sunsets’ “stunt was silly … I won’t enjoy seeing them attacked by a government that, at the same time, pretends ‘clean coal’ is a thing while pearl-clutching about ‘polluting our air’ with 10 grams of sulfate.”
The United States’ exports of petrochemical feedstocks to China are at risk due to the trade war touched off by President Trump — “yet another example of how Trump’s second term could prove ironically disastrous for the oil and gas industry,” my colleague Matthew Zeitlin wrote for Heatmap yesterday. The U.S. exported 83 million barrels of the natural gas product ethane to China in 2024, which the country processes into plastics that are often exported back to the United States. But “U.S. energy flows to China are done unless Beijing and D.C. come to an agreement,” Gregory Brew, an analyst at the Eurasia Group, told Zeitlin. “China is already looking to buy more crude from OPEC states to make up for losing U.S. [imports]” — and natural gas liquids, including ethane, “are sure to follow.”

Humans have observed a colossal squid in its natural habitat for the first time ever. Though science has known about Mesonychoteuthis hamiltoni’s existence since discovering arm fragments in the stomach of a sperm whale in 1925, researchers captured the first images of a foot-long juvenile in its home waters nearly 2,000 feet below the surface of the southern Atlantic Ocean.
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By neutering the Corporate Average Fuel Economy standards, the Trump administration cements the country’s dependence on oil and liquid fuels.
This is Heatmap Daily, a weekday news digest written by our executive editor.
President Trump’s big fuel efficiency rollback is here. This afternoon, the Department of Transportation significantly weakened the Corporate Average Fuel Economy standards, the federal government’s rules that encourage new cars and trucks to get gradually more fuel-efficient over time. Instead of mandating that new cars and trucks hit a target of more than 50 miles per gallon, as the old Biden-era rules had required, new vehicles sold in the U.S. will now need to average only 34.9 miles per gallon.
That target is below the level that most automakers have already achieved in their vehicle fleet. (For reasons too obscure to recount here, the regulatory standard of 34 miles per gallon aligns to real-world gas mileage in the mid-to-high 20s — something my 15-year-old hatchback manages to achieve without much straining.) The new rules also retroactively rewrite the standard back to 2022, meaning that automakers whose fleets once broke the law may now be in the clear.
These changes, in other words, render the fuel economy law, first enacted in 1975, is now moot. But Republicans in Congress had arguably already achieved this last year, when they zeroed out all of the law’s fines for automakers as part of the president’s tax and spending bill. These two changes, taken together, mean that the Trump administration has successfully neutered the U.S. fuel efficiency rules.
We are digging into the rule-making here at Heatmap, and I hope to have more on the documents in the days to come. But one of the lasting ironies of President Trump’s approach to fuel efficiency will be that his own presidency demonstrates its strategic inadequacy.
The Corporate Average Fuel Economy law, after all, did not originate as an environmental policy — climate change had scarcely emerged as a pressing issue in the mid-1970s — but as a national security and economic sovereignty measure. In the aftermath of the oil embargo, American politicians realized that the U.S. economy was far too dependent on oil for its long-term good. This set off a scramble to find new energy sources, prompting a dash back to coal in the electricity sector and a surge in federal R&D spending on alternative energy. (This funding boost eventually created the modern solar, wind, battery, and fracking industries.)
It also led to a successful push to regulate gas mileage. Crucially, this effort did not limit emissions from any one type of vehicle, as the Environmental Protection Administration’s toxic air pollution rules aim to do. Rather, it targeted the average fuel efficiency of cars and light-duty trucks sold in the United States in each model-year. The point was not to regulate any one type of vehicle out of existence, but to increase the country’s overall fuel efficiency over time.
That decades-long effort was never perfect. It created in American statute, for instance, a lasting distinction between cars and trucks, which has bedeviled regulators as SUVs have taken up a larger portion of the new vehicle fleet. But it has also inarguably succeeded: The United States ekes far more value out of every barrel of oil today than it did half a century ago.
Yet the time is ripe to keep making progress. President Trump’s administration has illustrated the persistence of our oil dependence — and the political and strategic problems that it can still engender. Even though the United States has since become the world’s largest producer of oil, the linked and globalized nature of fuel markets means that a supply shock anywhere leads to price hikes everywhere. When an oil crisis arrives — even a largely self-inflicted one, as in the case of the Iran war — then the price of moving things and people rises, the economy suffers, and the president’s popularity falls. Countries can protect themselves from these shocks on a short-term basis by stockpiling oil (as the United States, in fact, does), but they can avoid them only by switching to a far more efficient and electrified transportation system.
President Trump, in other words, may regret the current oil and refining crisis. But by gutting the fuel economy standards — and waging war on electric vehicle incentives more broadly — he is increasing the likelihood that America will face many more crises like it in future years. Consider it his particular gift to his successors.
The cofounders of The Impact Project have a three-step test for voters.
In November 2025, Texas Governor Greg Abbott announced a $40 billion Google investment in his state and declared, “Texas is the epicenter of AI development, where companies can pair innovation with expanding energy.” At a campaign stop in East Texas seven months later, he had a different message: “We must prohibit them from building AI data centers in rural Texas neighborhoods.” Last week, Abbott instructed Texas’ environmental agency to stop issuing permits to data center projects until the state’s grid operator completes an audit of all data centers in the interconnection process.
Abbott is not alone. In the past week, three other candidates for governor moved toward limits. On September 23, Maryland Governor Wes Moore, a Democrat, signed an executive order tying state incentives for large projects to a new review process, pledged that “the state will not go around a local community’s ‘no,’” and announced that he would ask lawmakers to repeal the state’s data center tax exemption, passed in 2020. The same day, Kansas Democratic nominee Cindy Holscher, who voted for data center tax incentives as a state senator and now backs a moratorium, said she “certainly would vote differently based on the information we have now.” Teri Ann Hourihan, Arizona’s No Labels candidate, also promised a “Day 1” moratorium on new data centers.
These shifts represent a pattern we’re seeing across party lines during an election season dominated by conversations about data centers and artificial intelligence. At The Impact Project, we track where the candidates for governor stand on data centers: 143 candidates in 36 states and three territories. By our count, 69 of the 78 major party candidates have voiced positions on data centers. Thirty-eight candidates have staked out restrictive positions on data centers, while 31 are supportive, ranging from unequivocal support to reluctant support with significant safeguards and concessions. Importantly, we counted a candidate as supportive if they champion data center development, even if they want a pause or a moratorium to take a closer look first.
Across party lines, candidates appear to be trying to balance environmental and social concerns with economic and technological priorities. At least 30 support a pause, halt, moratorium, or ban, including 20 Democrats and 10 Republicans. In five states — Maine, New Hampshire, Ohio, Oregon, and Texas — the Democratic and Republican candidates both clearly back a pause. Among sitting governors up for reelection, a quarter back a pause; among major party candidates newly seeking the job, 43% do. The 65 third-party and independent candidates lean further toward restriction: We documented positions for 32 of them, including 19 who back a pause, moratorium, or ban. Today, we are making our research publicly available.
Candidates appear to be following voters, whose opinions have shifted rapidly. In September 2025, Americans were evenly divided over whether they would support a data center being built near their homes. By August, 75% opposed one. In Virginia, the share of voters comfortable with a new data center in their community fell from 69% in 2023 to 35% in 2026 in 2026. In May of this year, seven in 10 Americans told Gallup they oppose AI data centers in their area, with the strongest opposition in the Midwest and the South. Voters’ complaints are concrete, concerning water use, air pollution, persistent noise, rising utility bills, and projects negotiated under nondisclosure agreements without neighbor consent.
Candidates should be responsive to their constituents’ priorities, but the electorate is naturally skeptical when candidates shift their positions so dramatically during an election year. These pivots invite questions about whether some candidates’ new skepticism of the data center boom will last beyond November.
In Nevada, Democratic nominee Aaron Ford co-sponsored the 2015 law that created the state’s data center tax abatements. He now promises to pause them. His Republican opponent, incumbent Governor Joe Lombardo, once called data centers the state’s new “gold rush.” On September 18, less than two months before the election, he signed an executive order curbing the tax breaks. Arizona Governor Katie Hobbs, a Democrat, told lawmakers in January that she voted for the state’s data center tax exemption as a legislator, and that she now wants to eliminate it. Wisconsin’s Republican nominee, Tom Tiffany, called data centers “exciting new technology” in January. His campaign now says, “[w]e are America’s Dairyland, not America’s Dataland.”
Pennsylvania’s Republican nominee, Stacy Garrity, was even more blunt: Last summer she praised data center deregulation and expansion. This June, Garrity announced that “we pause for as long as we need the pause.” Garrity’s opponent, incumbent Democrat governor Josh Shapiro, has similarly flipped: Last year, Shapiro celebrated fast-tracking permitting for data center and AI development. This year, Shapiro signed an executive order proposing limits on data centers and has spoken about developers “running roughshod” over communities. In Ohio, billionaire Republican gubernatorial candidate Vivek Ramaswamy called his state’s data center boom “great” in 2025. Now he promises an executive order pausing construction.
Candidates, of course, are allowed to change their minds, and these changes may be sincere. Our understanding of the burdens of data centers is growing along with the industry. The vast AI hyperscalers being built today are not the server farms of 2015, which is how Nevada’s Ford explained his shifting position.
Are we witnessing political convenience or a real change of heart? No one can see inside a candidate’s head. Voters can, however, check three things.
First, does a candidate’s promise come with a plan? Many of the loudest pledges are for a “Day 1” executive order. Executive orders are the easiest policy to make and the easiest to undo, and a pause is hollow without regulatory action to follow it up. We can ask what bill language the candidate would support, what it would require, and what happens the day a proposed pause ends. We can also question whether the candidate can deliver. Utility rates are set by public utility commissions, not governors, and tax incentives are written into law. A governor can stop new deals, but signed deals keep running. Lombardo’s order, for instance, applies only to companies seeking new tax breaks.
Second, does the plan require disclosure? We cannot regulate what we cannot measure. Many candidates describe their pause as time to study the problem. Maryland’s Republican nominee, Dan Cox, wants a moratorium “so that we can study this.” A study needs data, and data centers developers and operators are famously opaque. As data is so infrequently available directly from data centers, journalists, activists, and researchers have resorted to techniques as varied as satellite imagery, public records requests, thermal drone footage, tax document sleuthing, and human tips to collect data and break news about data centers. Yet fewer than a quarter of candidates who call for a pause call for mandatory disclosure. A pause without reporting requirements ends where it started: without the facts needed to regulate.
Third, what did the candidate do before this was popular? Votes, signed deals, and ribbon cuttings are public record. A candidate who switched should be able to say what changed and what they got wrong. One who cannot is asking voters to trust the new position on faith.
After November, voters can keep score. Watch the first legislative session and the first budget. Do data center incentives come back under a new name? Does a “Day 1” pause end with rules, or does it simply end? Communities have already shown what accountability looks like locally, where residents have recalled officials and replaced council members who approved unpopular projects. Governors deserve the same attention.
What voters want is reasonable. When a Michigan poll asked about a data center within 25 miles of home, 55% said they were not open to it, 11% were not sure, and only 33% said they were open to it. After hearing a set of protections, including no rate hikes, no tax incentives or secret deals, and closed-loop cooling, 49% said they would be open to one. What most voters oppose is data centers without rules.
Americans are demanding change, and data centers are top of mind. Candidates who mean what they say will make good on campaign promises by writing rules and passing them. The rest will let their hollow promises lapse and hope no one is counting. We all should be.
The renewables developer is expanding its business to serve “our nation’s growing energy needs.”
Two years ago, Arevia Power marketed itself as a renewable energy development powerhouse founded by solar industry veterans.
Today, the company is now also building data centers and gas turbines, Arevia chief development officer Ricardo Graf confirmed in a statement to me.
“Arevia is an energy company that delivers reliable and affordable electricity to the communities and utilities we serve,” Graf told me via email, acknowledging that “in some cases, that energy may be solar; in others, it may be gas.” He added that “yes, we also develop data center projects, but ones with accompanying power solutions to ensure ratepayers are not impacted by the data center’s energy needs.”
I’ve been keeping a close eye out to see whether any renewable energy developers, faced with the Trump administration’s squeeze on federal permits, will bet on diversifying their businesses. Maybe if they couldn’t build a solar farm on federal lands or access ample federal tax credits for constructing new projects, they’d invest in other sorts of large infrastructure projects instead.
We’ve definitely seen large U.S. energy developers such as NextEra and Invenergy take Trumpian tacks towards supplying data centers with new gas power under. Over the summer I broke the news that Clearway Energy asked the Bureau of Land Management to change a five year-old application for solar farm permits with “a proposed data center and natural gas facility.” After those plans were made public, Clearway told me in a statement to me that it was nixing the idea because it did not comport with their business strategy. “As a clean energy developer and operator, our focus in Nevada remains solar and battery storage.”
In mid-September, D.C. news outlet The Washington Sun first reported that Rhea Data, a subsidiary of Arevia Power, was behind the proposal for a giant data center and energy complex in Idaho including thousands of acres of federal land. On Thursday, the Bureau of Land Management sent me a statement confirming key details such as the inclusion of a 450-megawatt on-site gas facility. The next day, a Nebraska public radio station reported that Arevia and Graf were connected to prospective early-stage data center project site evaluation outside the city of Lincoln.
When I asked whether the company was reorienting itself toward data centers and the gas energy business, Graf acknowledged how things looked. “While this may be perceived as ‘pivoting,’ it is just a product of the evolution of our nation’s growing energy needs, which solar alone cannot satisfy,” he said over email on Friday. “Our company takes an all-above approach to helping our nation meet its increasing power demands.”