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It’s flawed, but not worthless. Here’s how you should think about it.

Starting this month, the tens of millions of Americans who browse the real-estate listings website Zillow will encounter a new type of information.
In addition to disclosing a home’s square footage, school district, and walkability score, Zillow will begin to tell users about its climate risk — the chance that a major weather or climate event will strike in the next 30 years. It will focus on the risk from five types of dangers: floods, wildfires, high winds, heat, and air quality.
The data has the potential to transform how Americans think about buying a home, especially because climate change will likely worsen many of those dangers. About 70% of Americans look at Zillow at some point during the process of buying a home, according to the company.
“Climate risks are now a critical factor in home-buying decisions,” Skylar Olsen, Zillow’s chief economist, said in a statement. “Healthy markets are ones where buyers and sellers have access to all relevant data for their decisions.”
That’s true — if the information is accurate. But can homebuyers actually trust Zillow’s climate risk data? When climate experts have looked closely at the underlying data Zillow uses to assess climate risk, they have walked away unconvinced.
Zillow’s climate risk data comes from First Street Technology, a New York-based company that uses computer models to estimate the risk that weather and climate change pose to homes and buildings. It is far and away the most prominent company focused on modeling the physical risks of climate change. (Although it was initially established as a nonprofit foundation, First Street reorganized as a for-profit company and accepted $46 million in investment earlier this year.)
But few experts believe that tools like First Street’s are capable of actually modeling the dangers of climate change at a property-by-property level. A report from a team of White House scientific advisors concluded last year that these models are of “questionable quality,” and a Bloomberg investigation found that different climate risk models could return wildly different catastrophe estimates for the same property.

Not all of First Street’s data is seen as equally suspect. Its estimates of heat and air pollution risk have generally attracted less criticism from experts. But its estimates of flooding and wildfire risk — which are the most catastrophic events for homeowners — are generally thought to be inadequate at best.
So while Zillow will soon tell you with seeming precision that a certain home has a 1.1% chance of facing a wildfire in the next 30 years, potential homebuyers should take that kind of estimate with “a lot of grains of salt,” Michael Wara, a senior research scholar at the Stanford Woods Institute for the Environment, told me.
Here’s a short guide for how to think through Zillow’s estimates of climate risk.
Neither First Street nor Zillow immediately responded to requests for comment.
Zillow has said that, when the data is available, it will tell users whether a given home has flooded or burned in a wildfire recently. (It will also say whether a home is near a source of air pollution.)
Homebuyers should take that information seriously, Madison Condon, a Boston University School of Law professor who studies climate change and financial markets, told me.
“If the house flooded in the recent past, then that should be a major red flag to you,” she said. Houses that have flooded recently are very likely to flood again, she said. Only 10 states require a home seller to disclose a flood to a potential buyer.
First Street claims that its physics-based models can identify the risk that any individual property will flood. But the ability to determine whether a given house will flood depends on having an intricate knowledge of local infrastructure, including stormwater drains and what exists on other properties, and that data does not seem to exist in anyone’s model at the moment, Condon said.
When Bloomberg compared the output of three different flooding models, including First Street’s, they agreed on results for only 5% of properties.
If you’re worried about a home’s flood risk, then contact the local government and see if you can look at a flood map or even talk to a flood manager, Condon said. Many towns and cities keep flood maps in their records or on their website that are more granular than what First Street is capable of, she said.
“The local flood manager who has walked the property will almost always have a better grasp of flood risk than the big, top-down national model,” she said.
In some cases, Zillow will recommend that a home buyer purchase federal flood insurance. That’s generally not a bad idea, Condon said, even if Zillow reaches that conclusion using national model data that has errors or mistakes.
“It simply is true that way more people should be buying flood insurance than generally think they should,” she said. “So a general overcorrection on that would be good.”
If you’re looking at buying a home in a wildfire-prone area, especially in the American West, then you should generally assume that Zillow is underestimating its wildfire risk, Wara, the Stanford researcher, told me.
That’s because computer models that estimate wildfire risk are in a fairly early stage of development and improving rapidly. Even the best academic simulations lack the kind of granular, structure-level data that would allow them to predict a property’s forward-looking wildfire risk.
That is actually a bigger problem for homebuyers than for insurance companies, he said. A home insurance company gets to decide whether to insure a property every year. If it looks at new science and concludes that a given town or structure is too risky, then it can raise its premiums or even simply decline to cover a property at all. (State Farm stopped selling home insurance policies in California last year, partly because of wildfire risk.)
But when homeowners buy a house, their lives and their wealth get locked into that property for 30 years. “Maybe your kids are going to the school district,” he said. It’s much harder to sell a home when you can’t get it covered. “You have an illiquid asset, and it’s a lot harder to move.”
That means First Street’s wildfire risk data should be taken as “absolute minimum estimate,” Wara said. In a wildfire-prone area, “the real risk is most likely much higher” than its models say.
Over the past several years, runaway wildland fires have killed dozens of people or destroyed tens of thousands of homes in Lahaina, Hawaii; Paradise, California; and Marshall, Colorado.
But in those cases, once the fire began incinerating homes, it ceased to be a wildland fire and became a structure-to-structure fire. The fire began to leap from house to house like a book of matches, condemning entire neighborhoods to burn within minutes.
Modern computer models do an especially poor job of simulating that transition — the moment when a wildland fire becomes an urban conflagration, Wara said. Although it only happens in perhaps 0.5% of the most intense fires, those fires are responsible for destroying the most homes.
But “how that happens and how to prevent that is not well understood yet,” he said. “And if they’re not well understood yet from a scientific perspective, that means it’s not in the [First Street] model.”
Nor do the best university wildfire models have good data on every individual property’s structural-level details — such as what material its walls or roof are made of — that would make it susceptible to fire.
When assessing whether your home faces wildfire risk, its structure is very important. But “you have to know what your neighbor’s houses look like, too, within about a 250-yard radius. So that’s your whole neighborhood,” Wara said. “I don’t think anyone has that data.”
A similar principle goes for thinking about flood risk, Condon said. Your home might not flood, she said, but it also matters whether the roads to your house are still driveable or whether the power lines fail. “It’s not particularly useful to have a flood-resilient home if your whole neighborhood gets washed out,” she said.
Experts agree that the most important interventions to discourage wildfire — or, for that matter, floods — have to happen at the community level. Although few communities are doing prescribed burns or fuel reduction programs right now, some are, Wara said.
But because nobody is collecting data about those programs, national risk models like First Street’s would not factor those programs into an area’s wildfire risk, he said. (In the rare case that a government is clearing fuel or doing a prescribed burn around a town, wildfire risk there might actually be lower than Zillow says, Wara added.)
Going forward, figuring out a property’s climate risk — much like pushing for community-level resilience investment — shouldn’t be left up to individuals, Condon said.
The state of California is investing in a public wildfire catastrophe model so that it can figure out which homes and towns face the highest risk. She said that Fannie Mae and Freddie Mac, the federal entities that buy home mortgages, could invest in their own internal climate-risk assessments to build the public’s capacity to understand climate risk.
“I would advocate for this not to be an every-man-for-himself, every-consumer-has-to-make-a-decision situation,” Condon said.
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On EU’s EV reversal, ‘historic’ mineral deals, and India’s nuclear opening
Current conditions: Yet another powerful atmospheric river, this one dubbed Pineapple Express, is on track to throttle the Pacific Northwest this week • Bolivia is facing landslides • Western Australia is under severe risk of bushfire.
The Ford Motor Company expects to pay roughly $19.5 billion in charges, primarily from its electric vehicle business. In a press release, the automaker said it would refocus on hybrids and “efficient gas engines,” ramp up manufacturing of batteries for a standalone business, and boost truck production. The battery business aims to churn out 20 gigawatts of capacity every year starting in 2027. But the charges the company faces stem from its decision to abandon multibillion-dollar investments the carmaker made in new assembly lines for electric vehicles, demand for which slowed last year and dipped at the end of this year after the Trump administration phased out federal tax credits in September. “This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” Ford CEO Jim Farley said in a press release. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high margin opportunities like our new battery energy storage business.”
Ford isn’t the only one accelerating in reverse away from electric vehicles. Last week I told you about the deal the European Union struck between its center-right and far-right lawmakers to curb environmental regulations. Now the bloc has moved to scrap its 2035 target to ban sales of new combustion-engine vehicles. The move would have marked a dramatic sea change in the West’s transportation policy, all but eliminating sales of traditional gasoline-powered cars in favor of battery-propelled alternatives. It’s a sign of Brussels’ broader effort to pull back from green mandates that European President Ursula von der Leyen blames for the continent’s economic malaise.

It could have been worse. The Treasury guidance issued Friday dictating what wind and solar projects will be eligible for federal tax credits could have effectively banned developers from tapping the write-offs set to start phasing out next July. In the weeks before the Internal Revenue Service released its rules, GOP lawmakers from states with thriving wind and solar industries, including Senators John Curtis of Utah and Chuck Grassley of Iowa, publicly lobbied for laxer rules as part of what they pitched as the all-of-the-above “energy dominance” strategy on which Trump campaigned. Grassley went so far as to block two of Trump’s Treasury nominees “until I can be certain that such rules and regulations adhere to the law and congressional intent,” as Heatmap’s Matthew Zeitlin covered earlier in August.
Since the guidance came out on Friday, both Grassley and Curtis have put out positive statements backing the plan. “I appreciate the work of Secretary [Scott] Bessent and his staff in balancing various concerns and perspectives to address the President’s executive order on wind and solar projects,” Curtis said, according to E&E News. Calling renewables “an essential part of the ‘all of the above’ energy equation,” Grassley’s statement said the guidance “seems to offer a viable path forward for the wind and solar industries to continue to meet increased energy demand” and “reflects some of the concerns Congress and industry leaders have raised.”
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Virginia’s outgoing Republican Governor Glenn Youngkin vetoed more energy bills than he signed last year, killing legislation designed to increase rooftop solar and energy storage, boost utility planning requirements, and make efficiency improvements more available to low-income residents. Now that Democrat Abigail Spanberger is coming in to replace Youngkin as the next governor, those bills are coming back, the Virginia Mercury reported. In a column, lawyer and environmentalist Ivy Main called on Democrats to dream bigger. “Data center development is so far outstripping supply side solutions that if legislators aren’t more aggressive this year, next year they will find themselves further behind than ever,” Main wrote. “As more bills are filed over the coming weeks, we are likely to see plenty of bold proposals. Hopefully, legislators now understand the urgency, and will be ready to act.”
Data centers are now “swallowing American politics,” Heatmap’s Jael Holzman wrote recently. Just 44% of Americans would welcome a data center nearby, according to a poll from September by Heatmap Pro.
The 1984 Bhopal chemical disaster in India never resulted in any serious ramifications for Union Carbide, the Dow Chemical subsidiary responsible for the accident that left more than 3,700 dead from exposure to toxic gases. In 2010, India passed a law that threatened to impose full civil penalties on any private nuclear company that suffered an accident somehow. That legislation has prevented all but Russia’s state-owned nuclear company from entering the Indian market. Hoping to lure American small modular reactor companies to India, the government of Prime Minister Narendra Modi has vowed all year to overhaul the civil liability law. On Monday, Modi-aligned lawmakers proposed legislation to reform the nuclear sector and free foreign vendors from financial responsibility for anything that could potentially happen with their equipment.
The renewables industry, meanwhile, is continuing to boom on the subcontinent. The Japanese industrial giant agreed to invest $1.3 billion into renewable power in India in its latest push into green energy in South Asia, Bloomberg reported.
There’s green hydrogen, made from blasting freshwater with electricity made by renewables. There’s blue hydrogen, the version of the fuel that comes from natural gas mitigated with carbon capture equipment. Gray hydrogen is the traditional kind made with natural gas that spews pollution into the atmosphere. And then there’s pink hydrogen, made like the green kind with clean electricity except generated by a nuclear reactor. Orange is the latest color in the hydrogen rainbow, referring to the version of the gas that comes from a chemical process that accelerates production of the gas in natural formations underground. The startup Vema has announced a 10-year conditional offtake agreement with the off-grid data center power provider Verne to supply over 36,000 metric tons per year of “orange” hydrogen for server farms, Heatmap’s Katie Brigham reported.
The startup Vema just signed a new offtake agreement to provide 36,000 tons of orange hydrogen per year for data centers.
Love it or hate it, it’s looking like there may be a good reason to add yet another color to the hydrogen rainbow. In 2022, Florian Osselin, co-founder and CSO of the startup Vema Hydrogen, published a paper in Nature called “Orange hydrogen is the new green,” in which he outlines how to expedite the natural process of hydrogen formation in certain underground geologies, laying the foundation for what the company now calls Engineered Mineral Hydrogen.
Osselin’s startup, Vema, is now announcing a 10-year conditional offtake agreement with the off-grid data center power startup Verne to supply over 36,000 metric tons per year of so-called “orange” hydrogen for data centers. The announcement comes on the heels of Vema’s $13 million seed round earlier this year, which supports the company’s efforts to take its engineered hydrogen experiments out of the lab and into the field.
Vema’s ultimate goal is to produce low-carbon hydrogen at less than $1 per kilogram, making it cost competitive with petroleum-derived hydrogen and magnitudes cheaper than clean hydrogen produced via electrolysis.
“The Earth is generating hydrogen all the time,” Colin McCulley, the startup’s senior vice president of operations, told me. “So those reactions, when they’re close to the surface, are very, very slow and not fast enough to create enough hydrogen to capture.” To expedite natural hydrogen production — which occurs when water interacts with iron-rich rocks underground — Vema will inject water and its proprietary catalyst into suitable formations. The catalyst is designed to increase both the speed and the scale of the reaction, rapidly forming large, commercially relevant quantities of hydrogen.
The company has done extensive exploration and testing, McCulley told me, with the team running over 100 experiments per week for over a year. But though the lab results have been promising, scaling up will be the true test. If the tech is a success, the plan is to begin selling hydrogen in 2028.
“We’re going to start small, in which case we will likely sell truckloads of hydrogen — think 10 tons a day-type scale,” McCulley told me. “The eventual goal is to have on-site — or basically next door — consumption of the hydrogen.” This would eliminate the need to build expensive hydrogen pipelines or transport the fuel via truck. That’s a valuable cost-cutting proposition for producers of clean fuels such as methanol and ammonia, which face steep green premiums and use hydrogen as a feedstock. McCulley also envisions co-locating with data centers.
Right now, the company is starting a pilot project in Canada, and planning for others atr undisclosed locations, where McCulley says there are well-studied deposits of iron-rich rocks that sit relatively close to the surface, ripe for producing engineered hydrogen. West Coast states including Oregon, Washington, California, and Alaska have particularly well-suited subsurface geologies that lie decently close to major metropolitan areas, he explained.
Low exploration risk is a key reason why Vema thinks it’s a better bet than geologic hydrogen companies such as Koloma, which focus on locating and extracting naturally occurring underground hydrogen deposits — no additional stimulation required. But these natural formations typically lie far deeper than Vema is targeting and there’s much less certainty about where they’re located, Vema’s CEO Pierre Levin told me in an email.
“Natural geologic hydrogen depends on complex underground systems with multiple interdependent variables,” Levin, who previously served as CEO of the geologic hydrogen company Hethos, wrote. “With natural hydrogen, you’re at nature’s mercy. [Engineered Mineral Hydrogen] changes the game because we control the subsurface production process, which means predictable, manageable flow rates.”
At the moment, however, investors appear to be lining up behind the geologic hydrogen approach. Koloma alone has raised over $350 million since its founding in 2021 — though it also has yet to produce commercial hydrogen.
McCulley estimates that its hydrogen won’t be cost competitive with fossil fuels until Vema has already completed several large-scale projects, which isn’t likely to happen until 2035 or 2040. “So we need to be able to get through some of these first projects where we’re going to have to sell at a premium price,” he told me. It’s never a guarantee that emerging technologies like this will find patient backers willing to bet on the promise that economies of scale are just over the horizon. The startup is currently raising its Series A, though, and McCulley said he’s seen strong interest from the tech industry in supporting Vema at the price point it’s targeting
The company wouldn’t reveal what price this is, though, and the numbers for its contract with Verne are also under wraps. That deal depends on both Vema and Verne advancing their tech to the point where it’s well-proven and bankable. For Verne, that means demonstrating the viability of its next-generation data center power systems, which include more efficient, off-grid generators capable of running on clean hydrogen. For Vema, it requires completing pilot testing and building a successful demo project. Both sides also have to secure additional funding.
If Vema can pull that together, the payoff looks huge. “If you start producing this stuff at less than $1 per kilogram, the sky’s the limit,” McCulley told me. “The current industrial [hydrogen] gas plants, the biggest ones are, say, around 200 tons per day,” he explained. “We can be five times that from one location.”
The president set an August deadline to deliver guidance for companies trying to qualifying for clean energy tax credits. Four months later — and two weeks before new rules are set to kick in — they’re still waiting.
The One Big Beautiful Bill Act included a morass of new rules for companies trying to claim clean energy tax credits. Some of the most restrictive go into effect January 1 — in other words, in about two weeks. And yet the Trump administration has yet to publish guidance clarifying what companies will need to do to comply, leaving them largely in the dark about how future projects will ultimately pencil out.
At a high level, the rules constrain supply chain options for clean energy developers and manufacturers. Any wind, solar, battery, geothermal, nuclear, or other type of clean generation project that starts construction in the new year — as well as any factory that produces parts for these industries in the new year — and wants to claim the tax credits will have to purge their products and facilities of components sourced from “foreign entities of concern.”
Foreign entities of concern, or FEOCs, are companies that are “owned by, controlled by, or subject to the jurisdiction” of foreign adversaries of the United States — namely China, Russia, Iran, and North Korea.
Companies are already subject to rules under the OBBBA that require them to prove that neither they themselves, nor their projects, are influenced or “effectively controlled” by FEOCs. These requirements, too, lack formal guidance from the Treasury, although tax credit experts told me it was somewhat easier to guess at how to comply with them.
Still, this is all a big new costly headache for developers. Before the OBBBA, the only tax credit that came with such constraints was the consumer subsidy for electric vehicles. Companies developing clean energy generation or manufacturing projects in the U.S. could acquire materials, seek out investment, or buy technology licenses from anyone they wanted and still get federal subsidies. Now obtaining the latter two from Chinese entities is effectively banned.
Come January 1, companies will still be able to source materials from China, but only to a degree. Say you’re a battery storage developer that’s trying to qualify for the 48e clean electricity investment tax credit. Starting next year you’ll have to not just ensure but also document that no more than 45% of the value of the material inputs to the project come from a Chinese owned or influenced company. The rules tighten over time, going down to 25% after 2029. (For other types of clean power generation, the starting threshold is 60%.)
All of that would be difficult enough. But the law itself didn’t specify how to calculate that percentage, leaving it up to the Treasury department to provide further instructions. A few days after signing the OBBBA in July, President Trump issued an executive order directing the Secretary of the Treasury to issue guidance for the FEOC restrictions within 45 days of the law’s enactment. That put the due date in mid-August, which came and went with no clarity for clean energy companies.
Storage developers aren’t sure whether they can base their calculations on the value of finished battery cells, for example, or if they’ll also need to consider the origins and values of subcomponents like anodes and cathodes, or even the critical minerals within those parts.
The Treasury Department did not respond to emailed questions about an updated timeline.
“The further upstream you go, the more difficult,” Mike Hall, the CEO of Anza Renewables, a supply chain data and analytics firm, told me. “That’s one of the fears that I’ve heard. You go upstream enough, then it just becomes impossible, at least in the short term.” China currently dominates the supply chain for batteries, controlling more than 95% of global production of key minerals like manganese and graphite and cell components like lithium-iron-phosphate cathodes and anodes.
In the interim, developers are allowed to follow instructions issued by the Biden administration for tallying up the amount of domestic content in a project and apply the same method to calculate the ratio of FEOC-produced materials. But that won’t work for everyone, David Burton, a partner at the law firm Norton Rose Fulbright, told me, since that earlier document only covers wind, solar, and battery generation projects. For companies deploying fuel cells, geothermal power, or renewable natural gas, for instance, “it’s really just, you know, a coin toss as to how the rules are going to work,” he said.
Beckett Woodworth, a manager of federal credits and incentives at the advisory firm Baker Tilly, told me that another point of confusion is whether tariffs must be included in the calculation. Incorporating the cost of tariffs would inflate the value of any products sourced from China, making it much more difficult to meet the prescribed threshold.
All this uncertainty — and the ultimate guidance itself — matters more for some project types than others. Few large-scale wind and solar developers, for instance, will have to contend with the FEOC material restrictions.
That’s because wind and solar farms face another deadline on July 4 of next year. If they start construction before that date, they will have four years to connect to the grid and still be eligible for the investment or production tax credits, known as ITC and PTC. If they start construction after that date, however, they’ll have to race to become operational before 2028 in order to remain eligible. While smaller projects like rooftop and community solar might be able to work within that timeline, it’s likely impossible for utility-scale projects.
“For large-scale projects, if you don’t get started by next July, you’re not going to hit the ITC deadline anyway,” Hall told me. That means most wind and solar developers only really have to worry about complying with the FEOC rules for the next six months.
Many wind and solar developers will already have their hands full come January 1, and may not even try to add more during that six-month period. Everyone I spoke to told me that companies have been racing to safe harbor as many projects as possible before the rules take effect in the new year. According to a safe harbor provision published by the Treasury in August, developers can claim they “started construction” this year as long as they completed “physical work of a significant nature” before January 1. That could include paving a road at a project site or simply placing an order for a major piece of equipment, like a transformer.
“The industry will have a backlog of safe harbored projects to work on,” Burton said. “It’s going to take a while to work through that backlog and actually have this be a problem.” He shared a research note with me from Roth Capital Partners, an investment bank, which forecast that utility-scale solar would continue to grow year-on-year in 2026 and 2027, largely due to the volume of safe-harbored projects. (This prediction was also based on the assertion that there was “potential for a relaxing of the Trump permitting chokehold,” a reference to the administration’s effective moratorium on solar projects requiring federal approvals.)
The picture is a little different for other types of generation and for clean energy manufacturing, because tax credits for those projects extend for several more years. In the energy research firm Wood Mackenzie’s latest U.S. Energy Storage Monitor report, it wrote that storage installations could drop by 10% in 2027 due to uncertainty over the pending FEOC regulations. “Projects that are not safe harbored in 2025 are at risk if additional FEOC-compliant supply does not materialize in the near-term,” the report says.
Hall said that ultimately, the FEOC rules would probably be a bigger issue for manufacturing projects than for power generation, since many U.S. solar and battery factories have some amount of Chinese ownership or licensing deals with Chinese companies. A number of U.S. solar manufacturers have already started to sell their Chinese ownership stakes, according to the trade magazine Solar Power World. And that’s without knowing exactly what the rules will compel them to do.
The biggest open question in all this is whether the Trump administration will use the FEOC guidance as another opportunity to shut down the clean energy industries it doesn’t like. It’s possible to write a version of the rules that make the tax credits impossible to claim, Burton told me, but he’s optimistic that won’t happen. The subsidies’ Republican defenders in Congress, including Senators Chuck Grassley and Susan Collins, would “have a fit,” he said. “So I don't think they're gonna be vindictive about it.”