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The major U.S. automakers are catching up on Tesla’s power game.
It was my first truck-powered cocktail party.
General Motors had gathered journalists at a Beverly Hills mansion last week for a vehicle-to-home show and tell. GM’s engineers outfitted the garage with all the components needed for an electric vehicle’s battery to back up the house’s power supply. Then they tripped the circuit breaker to cut off the home from grid power and let the plugged-in Chevy Silverado electric pickup run the home’s lights and other electrical systems for the remainder of the gathering.
V2H tech, as it’s known, will be available in the top-of-the-line Silverado EV First-Edition RST that will begin deliveries in the middle of this year, making the Chevy competitive with its natural rival, the electric Ford F-150 Lightning. The Ford, released just two years ago, was one of the first American EVs to use bidirectional charging to let the vehicle battery to power the home. Soon, though, V2H may be commonplace: GM promises to put it not just in all its new electric trucks, but also in all the new EVs it’s building on the new Ultium platform by 2026, which may force other automakers to follow suit.
These moves aren’t just about a new feature to highlight in truck commercials. In the EV age, car companies have to become energy companies, too.
GM has spun off a whole new group, GM Energy, just to handle all the ways its electric Chevrolets and Cadillacs will interface with the integrated home. In its simplest guise, V2H, the system requires several boxes mounted to the wall in the garage. There’s a “dark start” battery to make sure the backup system has enough juice to get going again in case of power outage; and there’s an inverter to turn the DC electricity from a truck battery into AC for the house. The GM’s PowerShift charger refills the EV battery, but also allows energy to flow both ways.
That’s just the beginning. GM Energy is also introducing stackable PowerBank batteries a person could keep in their basement or garage. The company will add the ability to integrate solar panels into the system later in 2024, according to Chief Revenue Officer Aseem Kapur.
With these new pieces in place, energy can move around a person’s home in any direction. On a very sunny day, excess solar energy could be routed to the house’s battery stack — just as, at the scale of the utility grid, excess power from solar farms is stashed away in batteries during the afternoon to provide energy at night. The home’s battery stack could be used to back up the power supply in case of outage (just in case your Silverado isn’t plugged in at the time).
And the next stage is coming soon. Kapur said that by 2026, GM’s Ultium EVs will be equipped with vehicle-to-grid — V2G — capability. Today, some residents with home energy storage are using their stashed kilowatt-hours to participate in a virtual power plant; they engage in energy arbitrage by storing electricity when it’s cheap and selling it back to the grid when it’s expensive, making money in the process. V2G represents one step further. EVs that can talk to the grid could help to prevent blackouts and let their drivers engage in energy arbitrage using the battery in their pickup truck while it’s parked in the driveway. (For what it’s worth, Kapur told me the charging and discharging cycles from doing this are much easier on the EV’s battery life than the herky-jerky, stop-and-start nature of driving.)
It turns out that electrification is a multi-pronged revolution in the car business. First came the cars. As Heatmap has reported, Tesla’s enormous lead in selling EVs has eroded as the big companies’ electric offerings have improved and Musk became distracted with Twitter, Cybertrucks, and robotaxis.
The energy business marks another way the old-fashioned car companies are finally catching up to Elon Musk. Tesla for years has sold its own solar panels and Powerwall home batteries. It set up a virtual power plant in Texas to allow its solar and battery customers to make money on the energy markets. Suddenly, Detroit is moving into that space.
GM Energy’s home-of-the-future system will be sold as an added feature for people who buy an EV like the Silverado and want to back up their home electricity, but anybody — Chevy driver or no — could buy into the interconnected residential energy system. Ford’s Home Integration System performs the same function. At CES in January, Kia demonstrated an entire connected home to evangelize the potential of V2H and V2G. It won’t be long before all the major automakers have a similar solution on offer.
Of course, the home is just one part of the new energy ecosystem. In the days of gasoline, the oil companies controlled refueling and filled the country with Chevron and Texaco stations on every corner. But in the electric age, the carmakers are trying to exert more control on that market. Tesla appeared to grab the early lead in fast-charging stations, then it convinced the other automakers — GM and Ford included — to adopt its plug standard in their EVs so their customers could take advantage of Tesla’s charging network.
But with recent mass layoffs to Tesla’s Supercharger team, that advantage is in doubt. Musk may have opened the door for the other carmakers to swoop in. GM was among seven automakers that, earlier this year, pledged to build out 30,000 new fast-charging stations of their own by the decade’s end. As car companies continue to build out their energy businesses, they’ll keep creeping up on Tesla’s territory there. Then Musk really better hope that the robotaxi pans out.
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Voters in the crucial swing state will also decide key questions on their — and our — climate future.
In four days, Pennsylvania will become just about the most important place on Earth.
It is unlikely that either Kamala Harris or Donald Trump can reach the White House without carrying the Keystone State; winning Pennsylvania bumps either’s odds of prevailing in the whole election to over 90%, according to polling analyst Nate Silver’s models. The state will also play a deciding role in control of the U.S. House and Senate, which in turn will help or hamper the next president’s agenda. America’s domestic trajectory, its foreign policy decisions, and even its allies and enemies could all come down to the whims of the state’s 8.9 million registered voters.
But Pennsylvanians have other important choices to make on their ballots, too. “Pennsylvania is a major energy state, and its decisions — regardless of what type of energy it is — have a huge impact on America’s energy portfolio,” John Qua, the campaign manager of Lead Locally, which is supporting 17 down-ballot candidates in the state, told me.
As the nation’s second-biggest gas producer after Texas and third-biggest coal producer after Wyoming and West Virginia, Pennsylvania also holds the distinction of being the fifth-largest greenhouse gas-emitting state in the nation. Its state legislature hasn’t passed new climate legislation since 2008, in large part because of the influence of the fossil fuel industry over local politics. The American Petroleum Institute donates more to Pennsylvania lawmakers than those in any other state, and while fracking isn’t the decisive local issue it’s made out to be in the popular consciousness, it still employs around 100,000 people — more than made the difference in deciding the 2020 election in the state. (Harris notably reneged on her 2019 pledge to ban fracking if elected in an apparent overture to Pennsylvanians, although the state’s imperiled Democratic senator, Bob Casey, has been hammered by his Republican challenger over her prior position.)
Pennsylvania has a Democratic governor, Josh Shapiro, until at least 2026, and Democrats hold slim control over the state House of Representatives by a margin of 102 to 101. The ambition this cycle is to keep the state House and flip the Republican-held state Senate. Picking up three seats there would earn Democrats a governing trifecta, with a tie-breaking vote going to Democratic Lt. Gov Austin Davis. Flip four seats, and they’d have the majority.
But “if you asked me to bet you $10 that the Democrats would win, I wouldn’t take the bet,” David Masur, the executive director of PennEnvironment, a green research and advocacy group that works in the state, told me. “I think it’s just a long shot.”
The path to winning the state Senate and achieving a governing trifecta clearly runs through three districts. The first and easiest pickup is in SD-15, around the state capital in Harrisburg, where the “map is much friendlier to Democrats,” according to Masur. The party would then need to win a competitive seat in SD-37, in the Pittsburgh suburbs, which has tilted blue recently and also seems theoretically within reach. But things get trickier in SD-49, Democrats’ “white whale” district in Erie County, which President Biden won by 2 points but where Republican senator Dan Laughlin remains well-liked. To wrest back the chamber, in other words, the Democrats would “have to run the table,” Masur said. “I don’t even think there’s another race where you could go, ‘Oh, they could get the majority by winning this other seat.’ There’s nowhere else to go. They have to win those three.”
Because of recent redistricting, the climate groups working in the state are cautious about getting their hopes up too high. “Flipping the [state] Senate, which is currently held by Republicans, might be a two-cycle endeavor with these new maps,” Lead Locally’s Qua said. This doesn’t necessarily mean all is lost: Even maintaining control of two of the three levers of government in Pennsylvania would be a victory, and Democrats this summer managed to garner enough bipartisan support to pass legislation to bring solar panels to state schools.
But the stakes — and promises — of a trifecta feel crucial and tantalizingly close. According to a recent analysis by PennEnvironment, Pennsylvania is 48th in the nation for the percentage growth of total solar, wind, and geothermal in the past decade, and 46th in the nation for the percentage of growth in total solar over the past five years, generating less than its neighbors New Jersey, Maryland, and Ohio. “The fossil fuel industry is extremely moneyed and extremely influential, and it’s created a political reality where it’s very difficult to move good climate and clean energy policy forward in Harrisburg,” Flora Cardoni, PennEnvironment’s deputy director, told me. Climate obstructionists in the state Senate often refuse to call up good environmental policies for votes, leaving the state with “no laws on the books that require utility companies in Pennsylvania to increase the amount of clean renewable energy that they provide to their customers” which is “a huge impediment to progress.”
It’s not as if Democrats aren’t ready to go — they are. Shapiro is sitting on a two-bill plan for tackling climate change in the state. One would boost renewable energy to 35% of Pennsylvania’s total generation by 2035, which Cardoni described as “a huge step in the right direction, although we need to do much more.” The second bill would make polluters pay for their carbon emissions and spend the resulting money on clean air, water, and energy efficiency projects — essentially, a backup plan for if the state’s attempt to join the Regional Greenhouse Gas Initiative fails. (Owing to a question of constitutionality, RGGI is in limbo with the state’s Supreme Court.)
So, in a sense, you have to go for it. “Yeah, they’re really hard races,” admitted Caroline Spears, the executive director of Climate Cabinet, which is supporting 26 candidates in the state. “But if you win,” she added, “you win the fifth-largest greenhouse gas emitter in the country.” While she was loath to “compare our states against each other,” Spears pointed out that Pennsylvania’s emissions are about two and a half times those of Arizona, which makes it a much bigger opportunity for reductions.
Perhaps the most important point: No one really knows what’s going to happen. Not only are organizers working with new maps in the state due to 2022 redistricting, but state-level races also rarely attract substantial enough polling to make reliably predictive guesses, especially when there are so many toss-ups and razor-thin margins. Adding to the trickiness, Pennsylvania is one of the few states where residents still appear willing to split their tickets; in 2020, ticket-splitting between the president and the state Legislature was up to 15 points in places, which is part of why Climate Cabinet has targeted races in the state with margins of up to 10 points that other groups wouldn’t touch. “Folks have been like, ‘the Pennsylvania Senate’s not doable.’ That’s the word on the street,” Spears told me. “But I think people are forgetting a little bit that that was also the word on the street about the Minnesota Senate and the Michigan legislature,” which flipped during the 2022 midterms.
What’s encouraging is that Pennsylvania voters — contrary to their image of being fracking obsessives — have been curious or even enthusiastic about pivoting to clean energy when organizers have spoken with them. Following Winter Storm Elliott in 2022, which caused outages across the state, many residents now “recognize that the grid is outdated,” Julia Kortrey, the deputy state policy director at Evergreen Action, a national climate advocacy group, told me. There’s an acknowledgment among many that “the status quo is not working.”
As in many parts of the country this year, local races in Pennsylvania are mainly focused on battles over education, abortion access, immigration, and crime, not necessarily clean energy. But often, climate-related issues are bubbling just under the surface. “I’m not going to go up to someone’s door and ask ‘What issue is on your mind today?’ and have them say, ‘I’m really worried about the PM2.5 concentration or the Mauna Loa CO2 readings,’” Spears told me. “But if they’re like, ‘The cost of living is too high,’ I’m going to have a conversation about home insurance.”
A particularly good example of this is playing out in one of Pennsylvania’s U.S. House races, which will help determine the ultimate makeup of Congress. In the Lehigh Valley, Democratic Representative Susan Wild is attempting to hold off her Republican challenger, state Representative Ryan Mackenzie, who voted against the school solar bill and the state’s clean water act. Wild had been particularly instrumental in helping to replace lead pipes in the area, and she’s made her leadership on the issue prominent in her campaigning. “The Bipartisan Infrastructure Law and lead pipe removal can seem very — I don’t want to say national, but it can be hard to visualize,” Nate Fowler, the regional campaigns director of the League of Conservation Voters, told me. “But for voters in this part of the Commonwealth, it’s easy for them to understand why this is so important.”
It won’t be until after the dust from Tuesday settles — when Pennsylvania’s 19 electoral college votes have been allocated, and its U.S. House and Senate races decided — that national attention will turn to the consequences of the state’s down-ballot races, if it ever does. But whether Democrats run the table or Republicans eat into their opponents’ grip on the legislature, Pennsylvania’s elections will be pivotal to the nation’s greater evolving energy story.
“So much of what we can accomplish in Pennsylvania will lay the groundwork for what is accomplished across the country,” Kortrey, of Evergreen Action, said. “I tell folks, ‘If we can do it in Pennsylvania, we can do it anywhere.’”
On an EV production pause, a fancy new chart, and positive emissions news from the EU.
Current conditions:New York City, Long Island, and the Lower Hudson Valley, along with much of the Northeast Corridor, are under red flag warnings for fire after a month of dry weather • Typhoon Kong-rey made landfill in Taiwan with winds over 125 miles per hour, injuring more than 500 and killing two • The first snow of the year showed up in Iowa and, yes, Hawaii.
Ford is planning a temporary shutdown of the plant that produces its fully electric truck, the F-150 Lightning. The shutdown will last seven weeks, Bloomberg reported. Earlier this week, Ford told investors that its profits had fallen in part due to a $1 billion charge it had taken after overhauling its electric vehicle strategy earlier this year. Ford sold just over 7,000 Lightnings in the third quarter of this year, more than double its sales in the third quarter of last year, but just about 3.5% of its total F-150 sales. Overall, electric vehicle sales rose in the third quarter, but when it came to trucks, consumers preferred the Tesla Cybertruck to the Lightning.
Scott Olson/Getty Images
The Department of Energy announced Thursday that it would award $45 million in funding for eight electric vehicle battery recycling programs. The projects “will advance research, development, and demonstration of recycling and second-life applications for batteries once used to power EVs,” the DOE said. The programs include money for diagnostics, automatic sorting for used batteries, and automated battery dissembling. The projects being funded are in Southern California, Michigan, Illinois, New York, New Jersey, and Tennessee.
Microsoft will use wood to build two data centers in Northern Virginia, the company announced Tuesday. Use of “cross-laminated timber” will reduce the carbon footprint of the data centers’ construction by about a third compared to steel and almost two-thirds compared to concert, the company said. This is just the latest move by Microsoft to try to reduce emissions associated with construction — the company is also working on developing a market for buying environmental attributes of low-carbon cement, Heatmap reported earlier this month. Microsoft’s “indirect” emissions of greenhouse gases rose by over 30% last year, largely thanks to the massive data center building binge it’s been on, along with the rest of Big Tech.
While plans to build data centers are creating electricity demand anxiety all over the country, the boom may not disrupt or strain New York’s grid, at least for a while, New York Focus reports. “Despite mounting pressures due to the state’s climate law and a burst in new manufacturing and tech facilities, New York has enough power plants operating or planned to meet statewide demand over the next decade,” the news nonprofit reported, citing an analysis by NYISO, which operates New York’s electricity market.
This finding is important because it means that not every carbon-emitting power plant has to stay open to meet new demand, which may let New York get closer to achieving its emissions targets. The reason for the more optimistic forecast is that some of the largest loads in the state like crypto mining or hydrogen told NYISO they can shut down during times of high demand on the grid.
European Union greenhouse gas emissions fell 8.3% in 2023, according to the European Commission’s annual climate report. It was the largest fall in emissions “in several decades,” not counting 2020, when economic activity plummeted due to Covid-19. Annual emissions have fallen by more than a third since 1990, while economic activity has increased by two-thirds since then. The report attributed much of the drop to the continent’s energy sector, whose emissions dropped 18%.
“This drop was due to a substantial increase in renewable electricity production (primarily wind and solar), at the expense of both coal and gas and, to a lesser extent, a decrease in both electricity and heat supply compared with 2022, and to the recovery of hydro and nuclear power.” The drop in EU emissions stands in contrast to rising emissions globally in 2023, according to the United Nations.
To the delight of energy nerds, the Energy Information Administration has published a new Sankey diagram showing how energy gets used in the U.S. economy.
While a Harris victory would no doubt ensure smoother negotiations, there’s still Congress to deal with.
Less than a week after election night in the U.S., the United Nations’ annual climate conference begins in Azerbaijan. COP29, as this year’s conference is called, has climate finance and carbon markets on the agenda. It’s no secret that the outcome of the U.S. presidential election could shift the tenor of negotiations significantly on both topics. Everyone knows there’s one candidate who’s better for the climate and one who will be much, much worse.
Even if Harris wins, however, the United States may well continue to shirk its global climate finance obligations. If the U.S. can’t deliver on what it promises at COP29, it may not matter what actually happens there.
Negotiators at COP29 are tasked with setting what’s called the New Collective Quantified Goal on climate finance, a goalpost for the amount of cash governments must put up to meet global climate investment needs. Global South countries excluding China have suggested that they require more than $1 trillion per year in external finance to meet their climate targets. An agreed-upon NCQG will also help all countries flesh out the latest iteration of their national climate plans, also known as Nationally Determined Contributions, as required by the Paris climate agreement.
And yet preliminary discussions over the summer were inconclusive, not just on the NCQG target itself but also on which countries are expected to contribute and what kinds of financing (e.g. public, private, loans, grants) will count toward it. More controversially to some climate activists and civil society groups, negotiators are also using COP29 to finalize a framework for the implementation of Article 6 of the Paris Agreement, which calls for the creation of a global carbon credit market, which countries could use to trade emissions reductions and contribute to each others’ NDCs.
To put it simply: If Donald Trump wins, not much of this will matter. President Biden’s negotiators can still endorse ambitious NCQG and Article 6 targets, but there’s no evidence a second Trump administration will commit to delivering on them. Should Trump win, the U.S. will almost certainly cut itself out of the global climate finance architecture a second time. The Heritage Foundation’s Project 2025 plan, authored largely by Trump associates, not only calls for the U.S. to slash global climate and development funding (as Trump already called for in his first term) but also to withdraw from global negotiating fora entirely. In the breach, Trump administration diplomats will likely stress the importance of gas and non-renewable energy technologies (such as carbon capture) with an emphasis on ensuring domestic energy security and affordability, even as they prepare to gut most if not all of the Inflation Reduction Act and the Bipartisan Infrastructure Law.
A Kamala Harris victory next week will assuredly be much better for both global emissions reductions and the climate diplomacy landscape. While she has outlined no specific proposals for global climate policy in particular, there is also no evidence that she will renege on any U.S. global commitments made in the past four years or attempt to repeal any climate laws.
As president, she will likely preserve President Biden’s key global climate and development policy initiatives, including the Just Energy Transition Partnerships and the Partnership for Global Infrastructure and Investment. She will also likely support the Biden administration’s push to see the multilateral development banks support more investments in climate and development, particularly through mobilizing the private sector. The current World Bank President, Ajay Banga, was nominated by the United States in early 2023 after serving as co-chair of the Partnership for Central America, a private sector-backed economic development initiative launched by Vice President Harris herself as part of her broader engagement with the region. Their shared history suggests that they will continue collaborating on good terms if Harris is elected.
While none of this is directly connected to COP29 (and putting doubts about the efficacy of these programs aside), it speaks to the Biden-Harris administration’s commitment to, at the very least, platforming global climate and development issues. But will Harris actually deliver on the U.S.’s commitments to the NCQG or otherwise meaningfully increase the amount of public spending devoted to global climate and development goals? Probably not ― although in that case, Congress will be the more likely culprit, not her.
Attempts to appropriate additional funds for global climate programs are cursed with a severe case of legislative inertia. Congress did not significantly slash funding for global climate priorities during the first Trump presidency, but it also did not raise it much during the Biden presidency. Last year’s bipartisan debt limit negotiations didn’t help, of course. But even in the early Biden presidency, when Democrats had their narrow trifecta, Congress massively undershot Biden’s budget requests for global climate-related priorities. In fiscal year 2022, Congress passed less than half of what Biden requested; since then, presidential requests for global climate spending have ballooned in size, while appropriations have stayed flat.
This divergence reflects a stable short-term equilibrium: The Biden administration can showcase the full range of its commitments and bona fides and blame Congress for its failure to deliver on any of them, while Congress can coast on the spending cap deals it made to avoid government shutdowns. But it also ignores the planet-sized elephant in the room — that there’s been no new spending on mitigating climate change. Regardless of who is president, there’s only so much discretionary funding they can ever reallocate toward priority programs absent additional appropriations.
(Here it seems pertinent to remind everyone that the U.S. has never endorsed the global consensus framework of “common but differentiated responsibilities,” which would mean acknowledging a quasi-legal obligation to provide climate finance to Global South countries, on account of the fact that Congress has never been enthusiastic about this. The chances that anyone changes their tone are slim.)
In summary, even if Harris comes out on top on Tuesday, the U.S. will still be stuck in a holding pattern with respect to its global climate priorities. This puts the Biden administration’s COP29 negotiators in a vise: Pushing for a low NCQG gives other countries ground to criticize the U.S.’s inadequate ambition and care for the Global South relative to its ability to contribute, but pushing for an ambitious NCQG also gives other countries greater reason to criticize the U.S. if it fails to deliver. Ambition was never the problem; it has always been the delivery.
Optimistically, a Harris victory at least prevents the U.S. from being a roadblock to other countries’ climate action. But at a time when major Global North donor countries are cutting their aid budgets, American unwillingness to finance solutions to global climate and development challenges makes the rest of the world more dependent on private capital and, in turn, more vulnerable to market downturns, interest rate hikes, and capital outflows. (Alternatively, it makes Global South countries more dependent on petrostate wealth and Chinese imports for macroeconomic stability, although they may be less able to count on large Chinese capital inflows from here on out.) As expert report after expert report has detailed, climate change mitigation or adaptation simply will not happen at scale across the Global South without substantial new external financing.
Still, in lieu of new financing, a Harris administration could stress that efforts to catalyze private investment in the Global South (including through voluntary carbon markets) and reform global taxation also contribute to global decarbonization. And it could continue to argue that the U.S. is doing its part to decarbonize if it manages to pass more landmark climate and green industrialization laws like the Inflation Reduction Act. But it would be false to argue ― as President Biden and Treasury Secretary Janet Yellen have done at times, particularly in 2022 ― that the Inflation Reduction Act helps lower the cost of clean tech uptake across the Global South. This is not true — the credit for making clean technology, particularly solar energy, cheaper and more accessible for the Global South goes decisively to China. The U.S. is nowhere close to becoming a major clean technology exporter or a bona fide partner in green industrial transformation for any Global South country, policymakers’ pretensions to the contrary.
One prominent member of Harris’s advisory team, President Biden’s former National Economic Council Director Brian Deese, is trying to change that, advancing ideas like a “Clean Energy Marshall Plan” as an opportunity to deliver on both domestic industrial policy priorities and demands for global leadership vis-a-vis China; his writing exemplifies how American climate diplomacy is being subsumed into national security planning. (Deese is also a Heatmap contributor.) Tactically, this might work in the near-term: The bill to reauthorize the Development Finance Corporation, which would boost the U.S.’s ability to invest in decarbonization-related priorities across the Global South and particularly critical minerals supply chains, cleared the House Foreign Affairs Committee with bipartisan support over the summer. But this is not a strategy that on its own centers the climate and development needs of Global South countries.
So while a Democratic victory next week would certainly be a step toward continued climate action, and while what the Biden administration negotiates at COP29 will at least set a floor for future U.S. commitments (even if that floor is performative), we won’t see a major departure from the status quo unless a Harris administration can convince legislators that American leadership requires a lot more American money.
“We are not going back” ― this much is true. But it would be nice to go forward, too.