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Here’s where Biden’s climate law is having the biggest impact on the automotive industry — and where it’s falling short.
Around this time last summer, it seemed more apparent than ever that 2023 would be the year the gasoline-free automotive future was set to begin. After a decade that included electric vehicle fits and starts, Volkswagen’s diesel cheating scandal, the rise of Tesla, the EV boom in China, and a whole new generation of car buyers more aware of their personal impact on the climate than ever, it felt like the dawn of an EV-focused tomorrow was just around the corner. All it needed was a spark.
The Inflation Reduction Act, an admittedly poorly named piece of legislation packed with climate and green energy provisions, was meant to be exactly that. On the automotive front, the Biden administration’s signature legislation package included massive subsidies for EV battery plants, strict rules around where cars are produced and batteries are sourced, and a reset on America’s outdated EV tax incentive scheme for car buyers. It seemed grand on a scale not seen since the Johnson years: thousands of jobs, some $100 billion in funding, and a chance for America to kneecap China in the EV arms race.
So a year after the IRA’s passage, is all this investment working? The definitive answer is this: mostly, kinda.
While it’s highly questionable that the IRA has successfully Reduced Inflation, the effect of the legislation on America’s automotive manufacturing landscape has already been palpable. A recent report from the Environmental Defense Fund shows EV industry investments in the U.S. rising in 2021 around the passage of the Bipartisan Infrastructure Law, before taking off in a near-vertical fashion after the IRA was passed.
I decided to grade the IRA’s impact on America’s automotive sector — not just the Big Three U.S. automakers, but all companies who make cars here and support them — in a few key areas.
What I found is that a year in, the IRA feels like it could permanently reset our car industry. But in some key areas, its effects aren’t even close to being seen, and on other fronts, the IRA has caused a number of unintended consequences that will play out for years to come.
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This is arguably the biggest shift we’ve seen thanks to the IRA, and it’s certainly working.
Making batteries for tomorrow’s EVs won’t be as simple as turning car engine plants into battery plants; the supply chain, manufacturing process, and labor needs are entirely different. And so new facilities are springing up left and right to meet this moment.
The Electrification Coalition, a nonprofit policy organization that advocates for EV adoption, identified more than a dozen battery manufacturing and recycling factories that have been announced or are under construction thanks to IRA incentives. These projects are, on average, $3 billion or more, and they’ll provide batteries for future cars from General Motors, Rivian, Hyundai, Tesla, Volkswagen’s new electric Scout brand, and more.
Would this new battery ecosystem have happened without the IRA? Maybe. But certainly not this quickly or at this scale. The automakers may be moving in the direction of electrification, but it’s doing so begrudgingly and these incentives — coupled with state and local ones as well — gave them a reason to move quicker than “the market” would’ve done.
That’s good news for batteries. What about the cars themselves? Since the IRA heavily incentivizes batteries and EVs to be made locally — which I’ll touch on in a moment — it’s kicking off a surge in U.S. car manufacturing the likes of which haven’t been seen in decades.
While battery factories themselves are getting the lion’s share of the attention and money, automakers are adding new factories, expanding existing ones, and retooling lines to scale up their EV outputs.
Granted, many automakers are still investing heavily into (or hedging their bets on) their profitable gasoline models, especially big trucks and SUVs. But EV production is ramping up in America and that scale should eventually drive prices down. Simply put, if a car company — GM, Ford, Nissan, BMW, Hyundai, all of them — builds in the U.S., they’re about to start making EVs here too.
There’s an undercurrent that can be found across all of the Biden administration’s climate and tech investments: cutting off a rising China in countless areas. It’s why only EVs with “final assembly” in North America, that don’t source batteries or components from China, qualify for tax incentives. China has made huge investments into not only its own EV industry but controlling the supply chain around it, and America doesn’t want to cede that to a potentially hostile, non-allied peer state that has a horrific record on human rights and civic freedoms.
Is it working? So far, yes. However, it’s not going to happen overnight. Just as the Center for Strategic and International Studies called it last year, “in the short term it will be difficult to avoid Chinese supply chains.” That’s true of chips, minerals, and everything else.
Moreover, don’t expect automakers to give up the potential of exporting Chinese-made cars. Tesla already sells China-made EVs in Canada, and Volvo has found a George Washington-era loophole to sell the affordable EX30 electric crossover in America without steep tariff penalties. IRA rules may keep Chinese batteries out of our country and stiff tariffs hamper automakers like BYD for now, but this side of things is far from settled.
Now, it’s time for our lesson in unintended consequences. The new $7,500 EV tax credits have strict requirements; essentially, the cars and their batteries have to be built in North America. Given the long-term nature of these investments, not every automaker with an EV lineup can meet those rules for now, leaving a lot of cars out of the credit. (South Korea’s Hyundai Motor Group, in particular, got pretty burned here, leaving its excellent EVs on the expensive side.)
Long-term, these cars and their batteries will be built locally and more cars will qualify for the tax credit. For now, the high cost of EVs is proving to be a major deterrent to adoption. Buyers, squeezed by interest rates and the rising cost of everything, are having trouble justifying the switch. So far the biggest winner is Tesla, which has always been building EVs and batteries in America.
I think a better approach would’ve been to allow all EVs to qualify for the full tax credit until, say, 2026 or so; after that, and perhaps after a gradual phase-in, automakers would have to build local or charge higher prices. That would’ve given them time to ramp up these factories and pushed EV adoption harder at the same time. At the start of the year, before a ton of EVs and hybrids got kicked out of the program, that’s exactly the trend we saw.
That’s what I would’ve done. But, to date, Joe Biden has not put me in charge of such things.
This one is due to be an objective win for the IRA. That Environmental Defense Fund report counts 84,800 jobs that have been announced for the EV industry in America since the IRA’s passage.
According to their data, nearly all of those are located in Southern states. Georgia’s the biggest winner here, believe it or not. And Tennessee, South and North Carolina, and Kentucky are all seeing, or will soon see, big booms in EV-related job growth. The same is true for Michigan, the home of America’s auto industry, as well as lithium-rich Nevada, where Tesla has had a foothold for years.
Again, there’s another universe where the IRA didn’t pass and all of those jobs went to China instead as America’s automakers put their patriotism on the back burner to chase lower labor costs and easy profits. The U.S. is getting a major employment boost instead.
But there’s a difference between “jobs” and “good jobs.” Take a newly militant United Auto Workers union, currently locked into unusually bitter contract negotiations with the Big Three American automakers. One thing they’re mad about: those battery factories going up everywhere, especially the joint-venture ones, don’t automatically lead to union jobs. (One GM-LG battery plant in Ohio voted to unionize with the UAW last year but doesn’t have a contract yet.)
The result is that those battery plant workers could make considerably less money than America’s unionized auto workers, as my colleague Emily Pontecorvo reported in June. Adding insult to injury, EVs generally need fewer parts and labor than conventional cars to assemble; indeed, those battery plant jobs could one day form the bulk of America’s automotive labor force.
The UAW did support the IRA’s passage last year. But that also happened before the union’s much tougher current leadership came in; I’m not convinced it would have gone the same way today. In general, the law doesn’t do a ton for labor, and that’s why the reliably Democratic UAW has held off on endorsing Biden.
So far, the Biden administration doesn’t have a great answer for this, either. The president himself is doing the “Can’t we all just get along?” dance, but that may be the best he can do as he navigates climate, geopolitical, industry, and labor needs at the same time. And the move to EVs is expected to define the automotive labor world — here and globally — for the next few decades.
As Ryan Cooper astutely noted this week, the IRA’s biggest problem is arguably one of awareness. Very few people seem to know about these investments or what’s coming from them. That lack of awareness could be the IRA’s biggest threat.
Maybe that’s a problem more for Biden than the EV industry, America’s supply chain, or the climate, but when nobody knows about the president’s biggest achievement — especially in all those red states where the jobs are going — you have to wonder what a change at the White House next year could mean for all of this momentum. It’s not like those battery plants under construction will just disappear, but I wouldn’t put it past a less climate-focused White House (or Congress) to find a way to thwart all this progress.
There’s also the rising right-wing backlash to EVs in general, predicated more on the messaging power of the fossil fuel industry and our own endlessly stupid culture wars. In short, though these investments do take time, very few people seem to know about them or see the benefits that will come from them.
Auto industries are always heavily subsidized and regulated by the countries they come from. It was true of Japan after World War II, it’s been true of China for the past 20 years, and it’s certainly been true in various ways in America for a century. The IRA is just the biggest such move the U.S. has seen to modernize, compete and innovate in a world where gas cars could eventually be discarded as obsolete technology.
The groundwork has been laid. Now we’ll find out if it has staying power.
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The new climate politics are all about affordability.
During the August recess, while members of Congress were back home facing their constituents, climate and environmental groups went on the offensive, sending a blitz of ads targeting vulnerable Republicans in their districts. The message was specific, straightforward, and had nothing to do with the warming planet.
“Check your electric bill lately? Rep. Mark Amodei just voted for it to go up,” declared a billboard in Reno, Nevada, sponsored by the advocacy group Climate Power.
“They promised to bring down prices, but instead our congressman, Derrick Van Orden, just voted to make our monthly bills go up,” a YouTube ad told viewers in Wisconsin’s 3rd district. “It removes clean energy from the electric grid, creating a massive rate hike on electricity,” the voiceover says, while the words “VAN ORDEN’S PLAN: ELECTRICITY RATE HIKE” flash on screen. The ad, paid for by Climate Power, the League of Conservation Voters, and House Majority Forward, a progressive campaign group, was shown more than a million times from August 13 to 27, according to Google’s ad transparency center.
Both were part of a larger, $12 million campaign the groups launched over the recess in collaboration with organizations including EDF Action and Climate Emergency Advocates. Similar billboards and digital ads targeted Republicans in more than a dozen other districts in Arizona, California, Colorado, Iowa, Michigan, New York, Ohio, Pennsylvania, and Texas. There were also TV spots, partnerships with Instagram influencers, bus stop posters, and in-person rallies outside district offices — all blaming Republicans in Congress for the increasing cost of food, healthcare, and energy.
Courtesy of Climate Power
As others have observed, including Heatmap’s Matthew Zeitlin back in March, rising utility rates and the broader cost of living crisis are becoming a political liability for Republicans and President Trump. Clean energy advocates are attempting to capitalize on that, trying to get Americans to connect the dots between their mounting electricity bills and their representatives in Congress who voted to cut support for renewable energy.
Some of this is run-of-the-mill politicking, but it’s not only that. It also represents a strategic shift in how the climate movement talks about the energy transition.
It’s not new for green groups to make the argument that renewable energy can save people money. Relying on “free” wind and sun rather than fuels that are subject to price volatility has always been part of the sell, and the plummeting cost of solar panels and wind turbines have only made that pitch more compelling.
But it is new for the affordability argument to come first — above job creation, economic development, reducing pollution, and, of course, tackling climate change.
For most of the past four years, the climate movement has gone all in on trying to build an association in the American mind between the transition to clean energy and jobs. “When I think of climate change, I think of jobs,” then-candidate Joe Biden said during one of his 2020 campaign speeches.
It made sense at the time, Daniel Aldana Cohen, a sociologist at the University of California, Berkeley, told me. Just two years earlier, the Sunrise Movement had emerged as a political force with a headline-grabbing rally in Nancy Pelosi’s office demanding “green jobs for all.” The group was joined by then-newly elected Representative Alexandria Ocasio-Cortez, who soon introduced her framework for a Green New Deal that would offer a “just transition” for fossil fuel workers, ensuring them a place in the new clean energy economy.
The fossil fuel industry had seeded divisions between labor and environmental groups for decades by arguing that regulations kill jobs, and Democrats would have to upend that narrative if they wanted to make progress on climate. But the rationale was also more pressing: Unemployment was skyrocketing due to the COVID-19 pandemic, and whoever won the presidency would be responsible for rebuilding the U.S. workforce.
Fast forward to the end of Biden’s first year in office, however, and the unemployment rate had snapped back to pre-pandemic levels. Meanwhile, inflation was rising fast. Even though the Democrats managed to name their climate bill the “Inflation Reduction Act,” the administration and the climate movement continued talking about it in terms of jobs, jobs, jobs.
Cohen co-directs the Climate and Community Institute, a progressive think-tank founded in 2020, and admitted that “from the very start, we would just model every policy with jobs numbers,” partly because modeling the effects of policies on cost of living was a lot more complicated. Now he sees two issues with that approach. For one, it was always going to take time for new manufacturing jobs to materialize — much longer than an election cycle. For another, when unemployment is low, “everybody experiences inflation, but extremely few people experience a good new green job,” Cohen said.
During a recent panel hosted by the Institute for Policy Studies, Ben Beachy, who was a special assistant to Biden for climate policy, expressed some regret about the jobs push. “It wasn't addressing one of the biggest economic concerns of most people at that point, which was the rent is too damn high,” he said. But Beachy also defended the strategy, noting that all of the policies addressing cost of living in Biden’s big climate bill, like money for housing, public transit, and childcare, had been stripped out to appease West Virginia Democrat Joe Manchin. “So we were left without a strong policy leg to stand on to say, this is going to lower your costs.”
When the moderator asked what message Beachy thinks climate candidates should run on today, Beachy replied, “affordability, affordability, affordability.”
Jesse Lee, a senior advisor at Climate Power who also worked as a senior communications advisor in the Biden White House, echoed Beachy’s account of what went wrong post-IRA. The cost of living crisis makes it almost impossible to talk about anything else now, he told me. “If you don't start off talking about that, you’ve lost people before you’ve even begun,” he said.
Average U.S. electricity rates jumped 10% in just the year from 2021 to 2022, and have continued to rise faster than inflation. All evidence suggests the trend will continue. Utilities have already requested or received approval for approximately $29 billion in rate increases this year, according to the nonprofit PowerLines, compared to roughly $12 billion by this time last year. And these increases likely don’t reflect the expected costs associated with ending tax credits for wind and solar, hobbling wind and solar development, and keeping aging, expensive coal plants online.
In mid-July, Climate Power issued a strategy document advising state and local elected officials how to talk about clean energy based on the group’s polling. A post-election poll found that “more than half of Americans (51%) say the main goal of US energy policies should be to lower energy prices,” and that 85% “believe policymakers should do more to lower energy costs.” A more recent poll found that telling voters that “cutting clean energy means America produces less energy overall, and that means families will pay even more to keep the lights on,” was the most persuasive among a variety of arguments for clean energy.
This tracks with our own Heatmap Pro opinion polling, which found that the top perceived benefit of renewables in the U.S. is “lower utility bills” — though while 75% of Democrats believe that argument, only 56% of Republicans do. An affordability frame also aligns with academic research on clean energy communication strategies, which has found that emphasizing cost savings is a more effective and enduring message than job creation, economic development, or climate change mitigation.
The pivot to affordability isn’t just apparent in district-level campaigns to hold Republicans accountable. Almost every press release I’ve received from the climate group Evergreen Action this month has mentioned “soaring power bills” or “Trump’s energy price hike” in reference to various actions the administration has taken to hamstring renewables. Even clean energy groups, which at first attempted to co-opt Trump’s “energy dominance” frame, can no longer parrot it with a straight face. After Trump issued a stop work order on Orsted’s offshore Revolution Wind project, which is 80% built, the American Clean Power Association accused the administration of “raising alarms about rising energy prices while blocking new supply from reaching the grid.”
Several people I spoke to for this story pointed to the example of Mikie Sherill, the Democrat running for governor in New Jersey, who last week vowed to freeze utility rates for a year if elected. She immediately followed that statement with a promise to “massively expand cheaper, cleaner power generation,” including solar and batteries.
Dan Crawford, the senior vice president of Echo Communications Advisors, a climate-focused strategy firm, declared in a recent newsletter that Democrats should “become the party of cheap electricity.” He mused that we may be at an inflection point “where the old politics of clean-vs.-polluting makes way for a new debate of cheap-vs.-expensive.”
Debate is probably too tame a term — the claim to affordability is becoming a full-on messaging war. Last week, President Trump took to social media to declare that states that get power from wind and solar “are seeing RECORD BREAKING INCREASES IN ELECTRICITY AND ENERGY COSTS,” — a claim that has no basis in reality. The Trump administration is leaning heavily on affordability arguments to justify keeping coal plants open. In defense of canceling Revolution Wind, Interior Secretary Doug Burgum told Fox News that “this is part of our drive to make sure we’ve got affordable, reliable energy for every American … These are the highest electric prices in the country coming off of these projects.” On Thursday, Energy Secretary Chris Wright posted a news story about his agency rescinding a loan for an offshore wind transmission project, writing that “taxpayers will no longer foot the bill for projects that raise electricity prices and ultimately don't work.”
Clean energy proponents aren’t just going up against Trump — the fossil fuel industry has leaned on affordability as a rhetorical strategy for a long time, Joshua Lappen, a postdoctoral fellow at the University of Notre Dame studying the energy transition, told me. Lappen, who lives in California, said cost has been at the forefront of conflicts over climate policy in the state for a while. At the moment, it’s driving a fight over oil refinery closures that threaten to drive up gas prices even more. “I took a trip over the weekend and drove through the Central Valley,” Lappen told me, “and there are placards zip-tied to every gas pump at Chevron stations that are highlighting that state climate policy is increasing the cost of gas.”
I asked Lee, of Climate Power, how the climate movement could make a convincing case when clean energy has become so politically charged. He’s not worried about that right now. “I don’t think we necessarily need to win a debate about what’s cheaper,” he said. “All we have to do is say, Hey, we're in favor of more energy, including wind and solar, and it's nuts, nuts to be taking wind and solar and batteries off the table when we have an energy crisis and when utility rates have gone up 10%.”
That may work for now, at least at the national level. Americans tend to blame whoever is in office for the economic pains of the moment, even though presidents have little influence on prices at the pump and it can take years for policy changes to make their way into utility rates.
But there’s a difference between defensively blaming rising energy costs on the administration’s efforts to block renewables, and making a positive case for the energy transition on the same grounds. While there is an argument for the latter, it’s a lot harder to convey.
The factors pushing up energy prices, such as necessary grid modernization and disaster-related costs, likely aren’t going away, whether or not we build offshore wind farms. Meanwhile, the savings that large-scale wind and solar projects offer won’t be experienced as a reduction in rates — they won’t be experienced at all because they’re measured against a counterfactual world where renewables don’t get built. That’s a lot trickier to communicate in a pithy campaign. People may end up blaming the wind farms either way.
This dilemma is a hallmark of the so-called “mid-transition,” Lappen told me. The term was coined by his advisor, the energy engineer and sociologist Emily Grubert, and Sara Hastings-Simon, a public policy professor at the University of Calgary. The two argue that the mid-transition is a period where fossil fuel systems persist alongside the growing clean energy sector.
“Comparisons of the new system to the old system are likely to rest on experience of a world less affected by climate change, such that concerns about lower reliability, higher costs, and other challenges might be perceived as inherent to zero-carbon systems, versus energy systems facing consequences of climate change and long-term underinvestment,” they write.
To Cohen, advocates need to go a lot further than rhetoric to link clean energy with affordability. “We need to rebuild the brand and then rebuild the investment priorities of climate action so that working class communities see and literally touch direct, tangible benefits in their life,” he said. He described a “green economic populism” with much more public investment in helping renters access green technologies that will lower their bills, for example, or in fixing up homes that have deferred maintenance so that they can eventually make energy efficiency improvements.
It’s not about abandoning industrial policy or research and development, Cohen told me, but rather about a shift in emphasis. He pointed to Sherill’s approach. “She's not just saying, oh, clean energy will automatically lower bills if you just unleash it. She's like, I'm going to assertively use the government to guarantee a price freeze, and then I’m going to backfill that with clean energy policies to bring down prices over time.”
To be fair, the IRA did contain policies that would have produced more tangible benefits. The $7 billion Solar for All program would have delivered the benefits of residential solar — i.e. energy bill savings — to low-income households all over the country. The remainder of the Greenhouse Gas Reduction Fund, of which Solar for All was a part, was set to make a range of other green home upgrades more accessible to the working class, and the Green and Resilient Retrofit Program would have done the same for low-income housing developments and senior living centers. Electric school bus grants and urban tree-planting programs would have brought cleaner, cooler air to communities.
These were big, ambitious programs that were never going to produce results in the span of two years, and now the Trump administration has made every effort to ensure they never do. Whether they would have paid political dividends eventually, we’ll never know. But a successful energy transition may depend on giving it another shot.
On fusion’s big fundraise, nuclear fears, and geothermal’s generations uniting
Current conditions: New Orleans is expecting light rain with temperatures climbing near 90 degrees Fahrenheit as the city marks the 20th anniversary of Hurricane Katrina • Torrential rains could dump anywhere from 8 to 12 inches on the Mississippi Valley and the Ozarks • Japan is sweltering in temperatures as high as 104 degrees.
The Environmental Protection Agency is preparing to propose a new Clean Water Act rule that would eliminate federal protections for many U.S. waterways, according to an internal presentation leaked to E&E News. If finalized, the rule would establish a two-part test to determine whether a wetland received federal regulations: It would need to contain surface water throughout the “wet season,” and it would need to be touching a river, stream, or other body of water that flows throughout the wet season. The new language would require fewer wetland permits, a slide from the presentation showed, according to reporter Miranda Willson. Two EPA staffers briefed on the proposal confirmed the report.
The new rule follows the 2023 Supreme Court decision in Sackett v. EPA, which said that only waterways “with a ‘continuous surface connection’ to a ‘relatively permanent’ body of water” fell under the Clean Water Act’s protections, according to E&E News. What “relatively permanent” means, however, the court didn’t say, nor did Biden’s EPA. The two EPA staffers, who were granted anonymity to avoid retribution, “said they believed the proposal was not based in science and could worsen pollution if finalized,” Willson wrote.
Investors are hot on the Massachusetts Institute of Technology spinoff promising to make fusion energy a reality. Commonwealth Fusion Systems netted an eye-popping $863 million in its latest fundraising round. In a press release Thursday, the company said that its “oversubscribed round of capital is the largest amount raised among deep tech and energy companies since” its $1.8 billion financing deal in 2021. Commonwealth Fusion will use the funds to complete its demonstration project and further develop its proposed first power plant in Virginia. To date, the company said, it has raised close to $3 billion, “about one-third of the total capital invested in private fusion companies worldwide.” It’s a sign that investors recognize Commonwealth Fusion “is making fusion power a reality,” CEO Bob Mumgaard said.
The fusion industry has ballooned over the past six years. “It is finally, possibly, almost time” for the technology to arrive, Heatmap’s Katie Brigham wrote last year, noting: “For the ordinary optimist, fusion energy might invoke a cheerful Jetsons-style future of flying cars and interplanetary colonization. For the cynic, it’s a world-changing moment that’s perpetually 30 years away. But investors, nuclear engineers, and physicists see it as a technology edging ever closer to commercialization and a bipartisan pathway towards both energy security and decarbonization.”
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A record 75 gigawatts of new generating capacity hooked up to the U.S. power grid last year, a 33% surge from the previous year, thanks to new federal regulations aimed at streamlining the process. That’s according to new data from the consultancy Wood Mackenzie published Thursday. The report found that the Federal Energy Regulatory Commission’s Order No. 2023, issued in July 2023, along with other reforms by independent system operators, have had a “considerable impact on processing interconnection agreements, by driving improvements through reducing speculative projects and clearing queue backlogs.” While connections increased, regional grid operators received 9% fewer new project entries and saw a 51% uptick in non-viable projects since 2022.
Solar and storage technologies made up 75% of all interconnection agreements in 2024, equaling about 58 gigawatts. Wood Mackenzie projected that the sectors will retain a similar market share in 2025. Natural gas saw an increase in interconnection requests since 2022, adding 121 gigawatts of capacity. New gas applications are already breaking annual records this year. But overall the number of gas projects that successfully hook up to the grid is down 25% since 2022.
Almost 200 people have left the Nuclear Regulatory Commission since President Donald Trump’s inauguration in January, according to new estimates published Thursday in the Financial Times. Of the 28 officials in senior leadership positions, nearly half are working in an “acting” capacity, and only three of the five NRC commissioner roles are filled. “It is an unprecedented situation with some senior leaders having been forced out and many others leaving for early retirement or worse, resignation,” Scott Morris, the former NRC deputy executive director of operations, who retired in May, told the newspaper. “This is really concerning for the staff and is one of the factors causing many key staff and leaders to leave the agency they love ... creating a huge brain drain of talent.”
The exodus comes as Trump is pressing the agency to dramatically overhaul and speed up its review and approval process for new reactors. Supporters of the president’s effort say the NRC has stymied the nuclear industry for decades, and a future buildout of new reactors requires clearing house. But skeptics of the burn-it-all-down approach warn that the atomic energy industry’s success in avoiding major accidents since the 1979 partial meltdown at Three Mile Island is owed to NRC oversight, and that the agency’s processes have actually protected nuclear developers by avoiding frivolous lawsuits and not-in-my-backyard types.
Geothermal giant Ormat has reigned over the global industry of harvesting energy from hot underground reservoirs for the past 60 years. Now a new generation of companies is promising to tap the Earth’s heat even in places without water by using fracking technology to drill much deeper, vastly expanding the potential for geothermal. And Ormat has placed a big bet on one. On Thursday, the company inked a strategic partnership with Houston-based Sage Geosystems. As part of the deal, Sage will build its first commercial power plant at an existing Ormat facility in Nevada or Utah, significantly speeding up the timeline for the debut generating station. Sage CEO Cindy Taff told me the plant could be online by next year. “Ormat’s chosen a winner,” Yakov Feygin, a researcher at the Center for Public Enterprise who co-authored a report on next-generation geothermal, told me.
A majority of U.S. voters are still unfamiliar with geothermal power, according to a new poll from Data for Progress I reported on this week. When exposed to details about how the technology works, however, support grows among voters across the political spectrum. Republicans in particular are supportive.
A recent poll shows a lack of familiarity with geothermal.Data for Progress
The Grammy- and Oscar-award winning New Orleans jazz and funk singer Jon Batiste released a new song to mark the 20th anniversary of Hurricane Katrina, the catastrophic storm that flooded his home city. Dubbed “Petrichor,” a word that describes the scent of earth after rain, the lyrics unfold like a haunting hymn over a driving beat. “Help me, Lord / They burning the planet down / No more second linin' in the street / They burning the planet down, Lord / Help me, Lord / No more plants for you to eat.” In an interview published in The Guardian, Batiste said the song was meant to be a statement. “You got to bring people together. People power is the way that you can change things in the world,” he said. “It’s a warning, set to a dance beat.”
How the Migratory Bird Treaty Act could become the administration’s ultimate weapon against wind farms.
The Trump administration has quietly opened the door to strictly enforcing a migratory bird protection law in a way that could cast a legal cloud over wind farms across the country.
As I’ve chronicled for Heatmap, the Interior Department over the past month expanded its ongoing investigation of the wind industry’s wildlife impacts to go after turbines for killing imperiled bald and golden eagles, sending voluminous records requests to developers. We’ve discussed here how avian conservation activists and even some former government wildlife staff are reporting spikes in golden eagle mortality in areas with operating wind projects. Whether these eagle deaths were allowable under the law – the Bald and Golden Eagle Protection Act – is going to wind up being a question for regulators and courts if Interior progresses further against specific facilities. Irrespective of what one thinks about the merits of wind energy, it’s extremely likely that a federal government already hostile to wind power will use the law to apply even more pressure on developers.
What’s received less attention than the eagles is that Trump’s team signaled it could go even further by using the Migratory Bird Treaty Act, a separate statute intended to support bird species flying south through the U.S. from Canada during typical seasonal migration periods. At the bottom of an Interior press release published in late July, the department admitted it was beginning a “careful review of avian mortality rates associated with the development of wind energy projects located in migratory flight paths,” and would determine whether migratory birds dying because of wind farms qualified as “‘incidental’ takings” – harm or death – under the Migratory Bird Treaty Act.
While not stated explicitly, what this means is that the department appears to be considering whether to redefine these deaths as intentional under the Migratory Bird Treaty Act, according to Ben Cowan, a lawyer with the law firm Troutman Pepper Locke.
I reached out to Cowan after the eagle investigation began because his law firm posted a bulletin warning that developers “holding active eagle permits” might want to prepare for “subpoenas that may be forthcoming.” During our chat earlier this month, he told me that the eagle probe is likely going to strain financing for projects even on private lands that wouldn’t require any other forms of federal sign-off: “Folks don’t want to operate if they feel there’s a significant risk they might take an eagle without authorization.”
Cowan then voiced increasing concern about the migratory bird effort, however, because the law on this matter could be a quite powerful – if legally questionable – weapon against wind development.
Unlike the Endangered Species Act or the eagle protection law, there is currently no program on the books for a wind project developer to even obtain a permit for incidental impacts to a migratory bird. Part of the reason for the absence of such a program is the usual federal bureaucratic struggle that comes with implementing a complex statute, with the added effect of the ping-pong of federal control; the Biden administration started a process for permitting “incidental” impacts, but it was scrapped in April by the Trump team. Most protection of migratory birds under the law today comes from voluntary measures conducted by private companies and nonprofits in consultation with the federal government.
Hypothetically, hurting a migratory bird should be legally permissible to the federal government. That’s because the administration loosened implementation of the law earlier this year with an Interior Department legal opinion that stated the agency would only go after harm that was “intentional” – a term of art under the statute.
This is precisely why Cowan is fretting about migratory birds, however. Asked why the wind industry hasn’t publicly voiced more anxiety about this potential move, he said industry insiders genuinely hope this is “bluster” because such a selective use of this law “would be so beyond the pale.”
“It’s basically saying the purpose of a wind farm is to kill migratory birds, which is very clearly not the case – it’s to generate renewable electricity,” Cowan told me, adding that any effort by the Interior Department would inevitably result in lawsuits. “I mean, look at what this interpretation would mean: To classify it as intentional take would say the purpose of operating a wind farm would be to kill a bird. It’s obviously not. But this seems to be a way this administration is contemplating using the MBTA to block the operation of wind farms.”
It’s worth acknowledging just how bonkers this notion is on first blush. Is the federal government actually going to decide that any operating wind farm could be illegal? That would put entire states’ power supplies – including GOP-heavy states like Iowa – in total jeopardy. Not to mention it would be harmful overall to take operating capacity offline in any fashion at a moment when energy demand is spiking because of data centers and artificial intelligence. Even I, someone who has broken quite a few eye-popping stories about Trump’s war on renewables, struggle to process the idea of the government truly going there on the MBTA.
And yet, a door to this activity is now open, like a cleaver hanging over the industry’s head.
I asked the Interior Department to clarify its timeline for the MBTA review. It declined to comment on the matter. I would note that in mid-August, the Trump administration began maintenance on a federal dashboard for tracking regulations such as these and hasn’t updated it since. So we’ll have to wait for nothing less than their word to know what direction this is going in.