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These 7 neighborhoods are competing visions of a more sustainable future.

I’m a serial cheater, emotionally, on New York City. As much as Queens is my home, one of my favorite ways to lose track of time is by going down the Zillow rabbit hole and imagining all the other lives I could live somewhere else. If I had $2 million, would I move into a houseboat to live out my Sleepless in Seattle dreams? (You laugh, but at least a floating home is floodproof!). Or maybe I’d go to California to be closer to my extended family? (Never mind — I’d never be able to afford the fire insurance).
Recently I’ve become especially captivated by “intentional communities,” of which there are thousands worldwide and hundreds in the United States alone. These are experimental master-planned neighborhoods that revolve around shared values that often pertain to things like sustainability, communal living, green spaces, and minimizing individual impact — things that might be necessary to adopt in some form on a wider scale in the coming years.
Some of these communal neighborhoods are pretty out there (think aquaponics that runs off a “VillageOS”). Others are so alluring that without even realizing it, I found myself browsing their availability pages. Oops — don’t tell New York.
Here are a few of the innovative neighborhoods that caught my eye:
Location: Utrecht, Netherlands

You’ve joked about running away to go live in the woods, but what if you didn’t have to make the choice?
Designed by Stefano Boeri of Verticle Forest fame and Roberto Meyer of the Dutch firm MVSA Architects, Wonderwoods is a 200-apartment, two-tower project in Utrecht, the fourth-biggest city in the Netherlands. The pair of structures, set to open in 2024, look in the renderings like something nature has reclaimed. But the 10,000 plants and 300 trees that will eventually cover the buildings’ balconies, roofs, and facades aren’t just there to look cool.
By decking out Wonderwoods in the equivalent of one hectare of forest, the designers aim to maximize the known benefits of urban tree planting: Plants suck up CO2, help filter out environmental pollutants, and can even generate microclimates that will be important in a warming world (the cooling effects of plants will also help reduce the energy demand of air conditioners).
Wonderwoods’ co-designer, Boeri, has been called “perhaps the most famous name in green architecture,” and he is both prolific and influential: The Dutch project is just one of the dozens of plant-coated buildings that have been, or are being, constructed around the world.
Not all of these experiments have been successful — rumor has it the Qiyi City Forest in Chengdu is overgrown and bug infested — and some scientists have downplayed the greenhouse gas-mitigating effects of so-called biophilic design. Still, if we’re to survive in a hotter, more concrete-covered world, we’ll need to bring plants along with us.
Would I live here?: I’ve always been jealous of people who junglefy their living spaces with lots and lots of plants (Hilton Carter, please decorate my home!). Tragically, I don’t always have the greenest thumb — I’m an overenthusiastic waterer — but the good news is, Wonderwoods has a team of rappelling gardeners who will maintain the exterior vegetation for you. Getting to enjoy the lushness of a rural forest in the heart of urban Europe without having to do any of the work? Count me in — I’d live here for sure.
Live, Work & Play at Wonderwoodswww.youtube.com
Location: Tempe, Arizona

Forget electric vehicles: Residents of Culdesac, a rental community just across the river from Phoenix in Tempe, Arizona, are “contractually forbidden from parking a vehicle within a quarter-mile radius of the site.”
While that might sound practically un-American to some, it’s a paradise for others. The 17-acre, $170-million project includes 761 apartments, a light rail stop (which is free with residency), communal courtyards, a coffee shop, restaurant, gym, grocery store, soon-to-open coworking space, car-share pick-up and drop-off, and, yes, visitor parking.
Culdesac isn’t the only car-free community in America, as Jalopnik reports. But while the communities tend to be popular, especially with young professionals (40% of the people on Culdesac’s opening waitlist were from outside of Arizona), “these kinds of developments often aren’t legal to build in large parts of the country due to mandatory parking minimums,” Jalopnik adds.
That doesn’t deter its founders. The long-term “vision of Culdesac,” Ryan Johnson, Culdesac’s chief executive, told The New York Times, is to eventually “build the first car-free city in the U.S.”
Would I live here?: One of the biggest deterrents against leaving New York City is being saddled with car payments — not to mention that my husband doesn’t drive. Despite being located in the heart of the Phoenix sprawl, Culdesac seems genuinely committed to making a car-free lifestyle work for its residents, offering benefits like free rides on the metro, bike parking, $5-an-hour car-sharing, complimentary Lyft Pink, and rentable Bird scooters on site. Coming from the New York real estate market, its prices also seem reasonable — available one-bedroom units start at $1,390 a month. I know because I was tempted enough to look. If only I liked the heat a little more …
Culdesac Tempe: The First Car-free Community Built From Scratch in the USwww.youtube.com
Location: Vienna, Austria

Vienna is one of the fastest-growing cities in Europe, which has created a massive demand for housing. In order to meet the demand, Vienna is building a city within a city — and taking it as an opportunity to do things right.
With over 11,000 new homes (including the world’s second-tallest timber building), the neighborhood of Aspern Seestadt is nearly net-zero, relying on technology and cutting-edge construction techniques to lower its footprint. Excess heat and electricity in one building can be sent to another, for example, while 80% of its residents reportedly travel by bike, foot, or public transit.
But what sets Aspern Seestadt apart from other green, pedestrian-friendly communities around the globe is its emphasis on centering women’s and families’ needs. For one thing, all of the streets and public spaces in the neighborhood are named after women, but the attention goes beyond the symbolic — the pavement is also wide to accommodate strollers, and ramps are included alongside staircases; parks and other gathering spaces have plentiful public toilets; pram parking and storage are readily accessible. There are also extra safety measures, like more lights in dark spaces, abundant alarms and assistance buttons, and extra guards during nighttime hours.
Buildings in Aspern Seestadt also mix housing with nurseries, shops, and coworking spaces so “women, as well as men, can … better reconcile professional and personal life,” Germany’s Gettotext.com reports. It’s a model more intentional communities should take note of.
Would I live here?: Vienna has repeatedly been cited as the city with the highest quality of life in the world although the picture might not be as rosy if you aren’t Austrian. The expat resource website InterNations lists Vienna as the “worst-rated city” in the world when it comes to the “ease of settling in” due in large part to it also being in last place for “local friendliness.” As amazing as it’d be to be integrated into a community like Aspern Seestadt — especially, eventually, as a mother — it’d probably be terribly isolating to get the cold shoulder from my new neighbors. For the “new girl in the high school” vibes this is giving me, I’d potentially pass.
Vienna is Building a $6BN "City Within a City"www.youtube.com
Location: Barcelona, Spain

One of the major criticisms of intentional communities is that they’re not actually all that “green” since they require new construction, which in turn uses up resources and adds to emissions. Additionally, many of the neighborhoods featured in this article simply aren’t scaleable to the necessary degree; 4.4 billion people live in cities and moving all of them into net-zero villages or buildings would be next to impossible.
But what if existing neighborhoods could retroactively be made greener and more habitable? That’s the radical idea behind Barcelona’s superilles, or superblocks, which began reclaiming city streets for pedestrians back in 2013. The basic idea involves cordoning off 3x3 city blocks, diverting thru-traffic around the “islands,” and limiting the roads within the blocks to six-mile-per-hour residential traffic. This transforms the interiors of the superblocks into safe places for pedestrians to walk and kids to play; the new green spaces help eliminate the urban heat island effect and boost mental health; and the walkability encourages increased foot traffic, in turn reducing emissions.
The experiment has been an enormous success: NO2 pollution has dropped 33%; noise in superblocks dipped by 9 decibels, and local businesses have seen increased sales as residents opt to shop within walking distance, a positive illustration of the urban planning concept known as the 15-minute city.
Today, there are only six superblocks in the capital of Catalonia, but the goal is to expand the concept city-wide to potentially as many as 500. In the next decade, it aims for every resident to have a public square and a green street within 650 feet of their home.
Would I live here?: Psst, New York City, can’t you take a hint? The COVID-19 pandemic gave New Yorkers a taste of what it might be like if our city prioritized the needs of pedestrians over drivers with its “open streets” program, although most of that progress has been rolled back. Barcelona is proving we could be better if only we had our priorities in the right place. Sure, it’s a sí from me when it comes to moving to Spain, but it’d be even neater if we could bring the superblock experiment back home.
Superblocks: How Barcelona is taking city streets back from carswww.youtube.com
Location: Near Amsterdam, Netherlands

“The Tesla of Eco-Villages” might not sound quite as appealing as it once did. But if you want to live minimally but aren’t quite ready to give up your Apple Watch, then ReGen Villages might be for you.
While other projects I've highlighted reimagine urban living, ReGen Villages wants to reinvent the “neighborhood development outside of cities.” The 50-acre community of 300 homes is planned for a rural region about a half-hour drive outside of Amsterdam and aims to combine vertical farming, aquaponics, renewable energy, and waste-to-resource systems to form an almost entirely self-sustaining, closed-loop community.
But this isn’t your hippie aunt’s crunchy, off-the-grid living. Conducting the complicated system will be the “Village OS” software, which eventually will use AI to “optimize living conditions, energy use, and overall efficiency,” and even potentially communicate with other future ReGen Villages around the planet, Insider reports.
ReGen Village has run into a number of roadblocks since it was first announced — construction on the complex was originally slated to begin in 2017 but it has encountered zoning, permitting, and funding problems and its website says the company is “in [the] process of raising a Series-A round of investment” to build out the operating system to test in “pilot communities.” But if the Amsterdam location doesn’t work out, stay tuned; ReGen is a California-based company and it reports interest in the concept is high in the U.S., particularly the Northeast.
Would I live here?: I’m all for off-the-grid living but something about ReGen Villages feels a little … cult-y? Maybe it’s the all-seeing AI, or the active discouragement of owning a car while living in a rural area, but something about this whole scheme sounds like the starting premise of an Ari Aster film. I’ll keep my cell reception, thanks.
ReGen Villages - Index Award 2017 Finalistwww.youtube.com
Location: Dubai, United Arab Emirates

A desert oil state might seem like an unlikely place for a sustainable city; in 2003, the United Arab Emirates had the highest ecological footprint per person of any nation (and it’s not much better now). But as part of a region-wide effort to convince the rest of the world that climate objectives are compatible with fossil fuels, the UAE is hosting COP28 and touting lofty goals like making Dubai the city with the smallest carbon footprint in the world by 2050.
The 120-acre, $354 million Sustainable City is one of the crown jewels of that ongoing effort. Constructed 18 miles in the desert outside of Dubai by Diamond Developers, which built the city’s famous marina, the Sustainable City is intended as a model net-zero neighborhood, complete with self-sufficient greenhouses and biodomes, recycled water, solar panels, and intelligent design (the villas, home to some 2,500 residents, all face north, which the developers claim cuts air conditioning usage by 40%). Cars are banned inside the compound and a shopping plaza, complete with a mosque, serves all the residents’ needs.
Critics are highly skeptical of the Sustainable City, arguing the project is an “‘island’ of specialized consumption and lifestyle … that does not actually take on the challenge of sustainability.” Supporters, on the other hand, describe it as a “living laboratory” where developers are learning in real-time how to make habitable one of the most climate-threatened places on Earth. True, the Sustainable City might not be the solution to Dubai’s problems — at worst, it might represent another instance of the UAE’s greenwashing. But if its experiment is successful, the solutions it discovers could help inform better-living for everyone.
Would I live here?: There is a reason most of the homes on this list are variations on high-density living; dense urban housing tends to be far more energy efficient. While having your own villa in the Sustainable City would be pretty sweet, it does give the impression that this is just another gated community surrounded by all the other gated communities also touting their green bona fides in Dubai. On top of the human rights violations I’d have to turn a blind eye to in order to live in the United Arab Emirates, I’m not sure the Sustainable City would be right for me.
Sustainable City | Fully Chargedwww.youtube.comSc
Location: Austin, Texas

Bringing people in closer harmony with the Earth is the goal of many sustainable communities. Whisper Valley, a 2,000-acre development in Austin, just takes it a little more literally.
At first, Whisper Valley looks like many innovative developments popping up across America: The 7,700 homes come with solar panels, Google Nest thermostats, nearby community centers, and ample public green spaces (in this case, a massive 600-acre park that doubles as flood control). But what sets the community apart is what you can’t see: Whisper Valley sits on the largest geothermal grid in the world.
Drawing on the steady temperature of the deep Earth, geothermal is gaining popularity as a means of slashing energy costs and emissions associated with heating and cooling homes. In combination with solar panels, monthly energy bills in Whisper Valley run residents only about one dollar.
But the low energy impact and savings are not the only things that make Whisper Valley a model neighborhood for the future. Because of its reliance on geothermal energy, the community had no problem staying warm when a 2021 energy surge during the deadly Texas Snowpocalypse left millions of people without heat for days. “As extreme weather gets more destructive,” Fast Company writes, geothermal solutions like that in Whisper Valley may be “a way for communities to withstand their own version of Snowpocalypse.”
Would I live here?: The suburbanite in me loves a lot about Whisper Valley — the stand-alone energy-efficient homes, the communal gathering spaces, the emphasis on healthy outdoor-oriented lifestyles, and the charging stations that come already installed in the garages. For most Americans, the development likely represents a feasible way to lower the family footprint while not compromising on many of the things we’ve come to take for granted, such as having our own space and the freedom that comes with owning a car. As far as daydreams go, Whisper Valley is perhaps a little underwhelming compared to living in a sky-forest or a luxury villa. But in terms of places that real Americans might actually be convinced to live, Whisper Valley is as exciting as it gets.
Whisper Valley - East Austin's New Zero-Energy Capable Communitywww.youtube.com
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An active Pacific cyclone season plus El Niño-warmed waters could produce a first-of-its-kind West Coast storm.
Among hurricane watchers, “I” is the scariest letter in the alphabet. Since 2001, the ninth named storm of the year in the Atlantic Basin — which usually arrives around the mid-September peak of the season — has historically been the worst of the worst. Ida. Irma. Ivan. Isabel.
This year, there might not be enough storms for “I” ever to become a threat. With just eight to 14 named storms expected, the 2026 Atlantic hurricane season could very well conclude with the formation of Tropical Storm Hanna.
The Eastern Pacific season, however, is a different story. Having already ticked off Amanda, Boris, and Cristina since its season started on May 15, the basin could blow past “I” — also its most retired initial — and go as deep as Xavier, the 22nd name on this year’s list. And the more storms there are in the Eastern Pacific, the more chances there are for a “gray swan” event — in this case, the historically unheard-of but scientifically possible impact or even landfall of a hurricane in California.
“We know there’s a chance, but because of the rarity in the historical record, particularly in the recent 100 years, people lack understanding of this type of event,” Laiyin Zhu, a climate scientist at Western Michigan University and the co-author of a new paper in Nature Climate Change about the increasing risk of cyclone-related impacts on southern California, told me.
Blame El Niño for all the fuss this year. The National Oceanic and Atmospheric Administration formally announced its return last week, and though the atmospheric phenomenon has the effect of suppressing hurricane formation in the Atlantic basin by increasing wind shear and knocking would-be hurricanes off-kilter, the case is different on the left coast. Record and near-record warm waters serve as an engine for the cyclones that form in the Eastern Pacific, a pocket that extends as far as the 140th meridian west, an otherwise obscure latitude that cuts south from Alaska’s Yakutat Bay into the open ocean.
And there is no relief in sight: “With global warming in the next several decades, we are expecting a strong increase of sea surface temperature with the magnitude of about 2.7 degrees Celsius, and this will provide a lot of energy to the tropical cyclones on the East Pacific side of the state,” Zhu said.
Though about as many hurricanes form on average in the Eastern Pacific as in the Atlantic, trade winds push storms in the latter basin westward toward the Caribbean nations, Latin America, and the southeast and eastern United States, sparking excitement, attention, and the odd scandal when they threaten population centers. Storms in the Eastern Pacific follow the same westward trajectory, sometimes bumping into coastal Mexico, though just as often drifting harmlessly out to sea. In rare cases, a steering pattern sends a storm due north toward San Diego or Los Angeles. Each time that’s happened, cold waters off Southern California have starved the cyclone of its warm-water fuel before it can make landfall at full hurricane strength.
In an above-average Eastern Pacific hurricane season such as this one, however, there are more opportunities for a storm to follow that rare track toward California. Additionally, during an El Niño year, Southern California’s protective cold-water barrier becomes slightly warmer, meaning the continent has less protection against tropical storms that take the road less traveled by. To wit: The closest a hurricane has ever come to making landfall on the state was in 1852, an El Niño year. Hurricane Hilary, which prompted the National Hurricane Center to issue its first-ever tropical storm warning for Southern California in 2023, also formed during an El Niño. Though that storm weakened to below the tropical storm threshold before making landfall, its remains dropped more than half a year’s average rain on many parts of the region, killed one person, and racked up some $900 million in flood- and mudslide-related damage.
This year, Southern California will be all the more vulnerable due to the 60% chance of a “super” El Niño forming. “This, on top of the gradually increasing [sea surface temperature] from the climate background, is going to increase the probability of tropical cyclones making landfall, potentially with this rainfall and landslide impact over California,” Zhu said.
Realistically, the danger to California isn’t a Category 5 hurricane making landfall; if a tropical storm were to reach the shores of the western U.S., it’d very likely be weak and unstable. Rather, as Zhu and his colleagues’ research has found, the threat in a high-emissions warming scenario is that the warming Eastern Pacific shortens the return period of a “Hurricane-Hilary-magnitude rainfall” by 50%, from 110 years to 54 years.
While more rain for the drought-plagued Southwest might sound like a good thing, “we are talking about a so-called whiplash event,” Zhu told me. “If we have severe drought followed by a severe rain event, it is going to create big disasters like landslides because the dry soil is not going to absorb the rainfall in a short time efficiently.” The researchers found that all Southern California counties “exhibit growth in areas exposed to landslides from 2000 to 2050,” though the risk is disproportionate; for households earning less than $50,000, landslide risk could triple by the middle of the century compared to wealthy households, where it will increase by less than half. (Wildfires in the region have also made the landscape particularly prone to mudslides since the loss of vegetation disrupts normal water absorption by the soil and makes slopes more unstable after rain.)
There might be a spot of good news, though. Jin-Yi Yu, a professor of earth system science at the University of California, Irvine, told me that while he had not read the Nature Climate Change article, he thinks California might at least be spared a winter deluge of the likes of the 1997-1998 El Niño, which ran the state some $850 million in storm-related damage.
Often a skeptic of “super El Niño” hype, Yu acknowledged that this year appears headed toward the superlative. But as his research has shown, using the historical record to predict El Niño has become increasingly unreliable since the 20th century due to its shifting center and marine heatwaves. So far, the patterns in 2026 look more similar to the 2015-2016 El Niño, which was the strongest on record, but also developed a warm-water pocket near the International Date Line that disrupted the system to the point that winter rainfall in California was actually below average.
But if California dodges both a hurricane and a record-wet winter this year, that makes the state lucky, not invincible. Californians “are not like people from Florida, who are always getting hit by hurricanes and who know how to evacuate and how to build their houses to a certain standard,” Zhu said. Californians are particularly vulnerable to tropical cyclones because they’re so unlikely. Policymakers should be thinking now about zoning changes in landslide-prone areas and home-hardening measures in anticipation of when the “grey swan” event finally arrives.
“I hope this doesn’t happen this year, or for many years, in California,” Zhu said. “But we need to be aware of it.”
An exclusive interview with Senator Martin Heinrich on SunZia, the largest renewables project in U.S. history, which is now — finally — fully operational.
The largest renewable electricity project in American history is open for business.
After almost exactly 20 years of development, permitting, and construction, the SunZia Wind and Transmission Project became officially operational on Thursday afternoon, according to its developer, Pattern Energy.
The project, which built an enormous 3.6-gigawatt wind farm in New Mexico and a 550-mile high-voltage power line that crosses into Arizona, is capable of generating and delivering more electricity than the Hoover Dam. Its lengthy development and approval process made it an emblem of the country’s struggle to build new, large-scale power lines and virtually every other type of zero-carbon energy infrastructure.
“We proved that America can still build big things, and I think that’s really important,” Senator Martin Heinrich, a Democrat from New Mexico, told me on Thursday.
SunZia is now the seventh largest power plant in the United States. At peak capacity, it will power more than a million homes, according to Pattern’s estimates. The facility will fund more than $1.3 billion in direct payments to local governments, schools, and landowners over the next few decades, the developer said in a statement. More than half of the project’s electricity will be delivered to and used by southern California. (Analysts realized SunZia was nearing completion when gigawatts of wind power started appearing in the state’s energy data in May.)
So what took so long to get it done? The closer you look at SunZia, the more it seems to tell you about the promise — and pitfalls — of building more clean energy in America. The project began in 2006, when a group of utilities, developers, and governments across the Southwest realized that Arizona’s booming cities could draw cheap renewable power from New Mexico’s arid plains. The project applied for federal permits in 2008, and planned to start construction in 2013.

Yet due to a lengthy permitting and siting battle, construction did not begin until 2023. Two years ago, I detailed that saga in a feature for Heatmap, where I drove out to the remote Arizona valley where the line proved most contentious. That reporting also revealed how important Heinrich, the Democratic senator, had been to getting the power line built. When local environmentalists feared the transmission line’s towers would hurt sandhill cranes in a rare high-desert habitat in New Mexico, Heinrich intervened and brokered a new route. He also helped negotiate new technological improvements to the line to avoid the birds.
I later wrote up my three takeaways from the SunZia investigation. Among them: A better relationship between conservationists and clean energy developers is possible — but someone has to facilitate it. SunZia only ran through the tape because Heinrich had credibility with environmentalists and clean energy developers.
Heinrich is now important to an even bigger energy endeavor. As the Democratic ranking member on the Senate Energy and Natural Resources Committee, he is conducting negotiations with Republicans over a permitting reform package that could change how the federal government studies and approves new large-scale infrastructure. To commemorate the official opening of SunZia, I caught up with the senator by phone on Thursday to discuss the project’s long history, what he learned, and what it all means for permitting reform.
Our interview has been edited for length and clarity.
SunZia opens today. It’s very exciting. It’s been in the works for a long time. What are you reflecting on at this moment, and what did you feel like you learned from the process?
I think we proved America can still build big things, and I think that’s really important. But we also learned a lot of lessons along the way for how to do that. Those are going to be really important to bake into permitting reform, and they’re going to be important as best practices for other developers who want to take on these big infrastructure projects.
What are some of those lessons?
Well, for one, start by listening and engaging with the community very early in the process. Don’t come with some completely baked idea and expect people to, you know, welcome you with open arms. Go out into the community and listen — there’s just no substitute for it. And if you can do it, the earlier you can do that in the process, the better your prospects for getting to a good outcome.
I do think you need political leadership that’s willing to make hard decisions. You can’t build things without with zero level of conflict, but you can — with leadership — build big things and put them in the right places. There was an unwillingness, when I first started working on this project, for people to expend any amount of political capital to get it done, and I didn’t feel that was acceptable. There was just too much upside to having 3.5 gigawatts of clean generation, and all of the jobs and investment, $20 billion worth, that come with that.
One interesting aspect of this case is what happened with Audubon Southwest and the Pentagon with the river crossing, where the initial plan that [SunZia’s developer] put forward wasn’t acceptable. And ultimately you helped broker a deal. One lesson I took away from that was that, boy, it’s helpful to have someone with credibility in the local community or politics to help put a deal together, but that’s obviously not the case everywhere. There’s not a Martin Heinrich to negotiate every power line. What do you think are the lessons from this experience that scale — because while community leadership is very important, you’re not always going to be able to find a political leader who can broker an agreement everyone will find acceptable?
No, and I take your point very well, but I do think there ought to be a leader in the White House who has a dashboard of big, nationally important infrastructure projects, who understands the issues in those projects, and can make sure that the federal family of agencies are working constructively to get to the right outcome. You can have these situations where literally one staff person in one agency can bring down an entire project. And so to the extent that you can institutionalize clear federal agency leadership, with support from the administration — I mean, I worked this thing through multiple administrations, but towards the end, with folks like [Biden-era national climate adviser] Ali Zaidi in the White House, to just make sure that the federal agencies were not lowering the bar for their standards, but that they were also working constructively.
You’re now negotiating permitting reform on the Energy and Natural Resources committee. Transmission is obviously a huge part of what an ideal package would look like. What do you think SunZia’s lessons are for a broader permitting reform effort?
To the extent that you can make sure that there are benefits across the entirety of linear infrastructure and transmission lines — that those benefits are not relegated to just where the generation is and and where the consumption is — that’s an important lesson. There are a lot of counties along the way, and there are a lot of private landowners who, if it’s in their interest, actually become cheerleaders for the project. Also, going back to early engagement, you don’t want to learn that there’s some fatal flaw in your route five years into a project. You want to figure out where the trip wires are early, and that’s why you have to engage conservation groups and historical preservation officers and those sorts of interests. Because if you’re doing your job right, you’re avoiding the kind of impacts that can stall a project.
What’s your assessment of how likely there is to be a permitting reform deal this year? We’ve heard, I think, mixed signals from Congress, but I also think that there’s some sense that if it were ever to happen, it would need to happen during this term, and probably come together over the next few months and solidify in the lame duck.
We’re still very much at the table, and so I’m not going to say it’s going to be easy, but we’re working hard to try and get to yes.
What is essential to getting a deal done?
The recipe for success in the Senate is to have a balanced bipartisan proposal. There are going to be things that are important to Republicans, in order to get to certainty for projects that are important to them. For me, transmission is an incredibly important piece of these negotiations. We have to make sure that it’s an effectively balanced package — that’s how you get to 65, 70 votes.
With SunZia out of the way, are there any other transmission projects or big projects you’d like to see come online?
We’re constantly engaged in the transmission conversation in New Mexico because there are both smaller regional lines that we’ve worked through and have gotten some things built, and then there are also additional interregional lines that are being explored. If you can get to a place like we did on SunZia — it wasn’t always this way, but today the breadth of community and political support for Sun Zia is very broad.
That’s been striking to me about SunZia. I’m in New York, and we just opened a big new transmission line down the Hudson. It’s great. It’s going to supply New York with 20% hydro power. And it’s funny because SunZia and the Champlain Hudson Power Express were contested projects when they were getting built, but now that they’re open, people are very supportive of them. What do you think is the lesson there for other lines?
It’s part process. When you do a good job on the process, you build more and more support over time, as people start to see the actual economic benefits in particular. So for a landowner in central New Mexico who has two or three turbines on their family ranch, the lease fees can be the difference between profitability and unprofitability. The [union] jobs of actually putting up the towers, and the generation and construction jobs — when those benefits become real, and the scary idea you might have had doesn’t necessarily manifest itself, it changes the equation. And so over time, if you’re doing this well, more and more accrues on the positive side of the ledger and less and less on the negative side.
But there’s still plenty of room for regional grid operators to set their own rules.
Almost eight months have passed since the Federal Energy Regulatory Commission was tasked by the Trump administration with conjuring up with new rules to help speed up interconnection of large loads without increasing retail electricity costs. On Thursday, FERC finally responded with “major reforms,” in the words of Chair Laura Swett, putting the onus on America’s restructured electricity markets — PJM Interconnection, Midcontinent Independent System Operator, Southwest Power Pool, California Independent System Operator, ISO New England, and New York Independent System Operator — to figure out how to implement their suggested solutions.
Using what’s known as “show cause” orders, FERC presented those in charge of these electricity markets, known as regional transmission organizations and independent system operators, with what was essentially a menu of ideas that have been percolating in electricity policy circles since the rise of data-center-driven load growth has started putting pressure on the existing grid and told them to get to work. Secretary of Energy Chris Wright’s original “advance notice of proposed rulemaking,” published in late October, was more proscriptive and specific, whereas FERC essentially said to regional electricity markets, “do whatever you have to, just make it work.”
In a brief email, former FERC chair Neil Chatterjee described this as “a very FERC-y approach!” Or as Gretchen Kershaw, the chief operating officer of Grid Strategies and a former FERC legal advisor, explained to me that “it’s much faster to act on a region-specific basis instead of going through a full notice and comment rulemaking process.”
The commission’s proposed reforms fall into five categories:
1. The markets need “clear transmission service application and study rules” for large load customers seeking to connect to the grid, Swett said in her remarks. The commissioners specifically called out the use of “grid-enhancing technologies” to expand the capacity of America’s existing electricity infrastructure — things like reconductoring, which adds transmission capacity along existing wires, and dynamic line rating, which adjusts capacity based on local weather and conditions. “The cheapest transmission line is the one that already exists,” Commissioner David Rosner said, speaking after Swett at Thursday’s meeting.
2. The RTOs and ISOs will also have to show that they have “adequate safeguards against cost-shifting or take steps to create them,” Swett said. This will require “cost recovery agreements,” Rosner added, “which are designed to ensure that large loads pay their fair share of the costs incurred to serve them, regardless of whether the large load comes online as planned.” In other words, “If new infrastructure is built to accommodate a data center, and that data center doesn’t show up, residential customers are not left on the hook to pay the costs,” he said.
3. The third area that the electricity markets will have to address is co-location and behind-the-meter power, specifically coming up with rules that facilitate purpose-built generation facilities to support new large loads. This would allow data centers and big power users to be less of a burden on the grid, thus requiring less in the way of grid upgrades and additional costs that would be borne by all ratepayers.
4. The orders tells markets “to prove or develop new transmission services to reflect large load flexibility,” Swett said. Load flexibility is another idea designed to lower the system cost of data centers. Grids have to be built out to accommodate the peak demand of the system, but with flexibility, data centers could shave off how much power they demand during, say, a hot summer day, thus lowering that demand peak. To get there, however, they need to be properly incentivized. FERC is telling the RTOs and ISOs to come up with rules that would allow large loads to come online without necessarily requiring vast new buildouts of grid infrastructure and generation. “Legalizing flexible transmission service options for more large load customers can speed interconnection, avoid constructing unnecessary transmission upgrades, reduce strain on the grid, and make power bills cheaper for everyone,” Rosner said.
5. Finally, the orders will require the markets to come up with rules and procedures for generation that’s “proximate” to new load. This will encourage “bring your own new generation,” Rosner said. That stands in contrast to proposals requiring or encouraging new large sources of demand to place generation on their own premises. “Literal co-location is not the only way to facilitate faster, more efficient, and more cost-effective connections to the grid,” Rosner said.
The markets will have to come back in a month to explain how they “intend to ensure that adequate generation will be available to serve existing and new large loads,” a FERC staffer explained at Thursday’s meeting, then again a month later to explain either how their existing rules conform to the new requirements or how they plan to charge their rules to do so.
The commission’s decision is not a formal rulemaking. Instead, the commissioners argued that tasking each RTO and ISO with specific orders would result in a more tailored set of reforms. “Today we’re engaging those to act with more speed, more durability, and more precision than we would get with our proposed rulemaking,” Commissioner David LaCerte said.
The action was strikingly bipartisan, with Democratic and Republican commissioners approving it in a 5-0 vote. It also won plaudits from clean energy and environmental groups. The Sierra Club said in a statement the action was “responsive to Sierra Club’s requests on several fronts,” while the clean energy trade group Advanced Energy United lauded the orders as “potentially creating much-welcome regulatory certainty and transparency, as well as some safeguards to ensure that co-location won’t negatively impact the electric rates and system reliability of all other customers.”
Federal energy regulators have been mulling these reforms as the Trump administration and state and local government officials have grown increasingly restless with rising electricity prices, utilities, and data center developers. Swett herself has scolded America’s largest electricity market, PJM Interconnection, for its inability to meet its own preferred level of excess capacity to ensure it can maintain continuous service, as well as continual high capacity costs, which have translated into tens of billions of dollars of added costs for electricity customers in the mid-Atlantic. Swett has even gone so far to suggest that PJM “ simply has grown too big to function,” leading some market observers to speculate that a forced breakup may be nigh.
Electricity prices nationwide have risen 5.3% in the last year, according to the Bureau of Labor Statistics, while overall prices were up 4.2% — a number that includes gasoline price increases stemming from the war in Iran. In PJM territories like New Jersey, average bills have increased from about $91 to $140 over the past five years, while prices are up some 52%, according to the Heatmap-MIT Electricity Price Hub.
The existing rules, Swett said, are “unjust and unreasonable because they do not adequately address how to integrate large and co-located loads onto the transmission system.”
“Free-riding on other customers is not an option,” she added.