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Hell is shopping for eco poop bags.
As much as I’m aware that blaming the climate crisis on individual consumer choices is a favorite smokescreen of large corporations and fossil fuel companies, it still totally kills me to buy single-use plastic bags. So when my household recently ran out of the 900 black disposable litter bags we’d bought on Wirecutter’s recommendation eons ago, I decided to be a Good Person and replace them with the most environmentally friendly option I could find. I mean, how hard could it be?
Hoo boy.
What started out as a naïve quest to find the greenest pet waste receptacle has become my Joker origin story. It’s turned me into Mark Ruffalo in Dark Water, except instead of taking on Dupont, I’m hounding companies with names like The Original Poop Bag and Doggy Do Good for the chemical makeup of their “green” bags. I’ve been red-pilled on advanced recycling. And, worst of all, I still haven’t actually bought a replacement — because the entire “green,” “biodegradable,” “plant-based,” “compostable” pet waste bag industry is built on misdirections, half-truths, and outright lies.
This might seem like a ridiculous thing to have spent my time obsessing over (and I don’t entirely disagree with you). But the greenwashing and obfuscation around these bags is part of a bigger story. Plastics are the fossil fuel industry’s last stand. The renewable energy transition, albeit in fits and starts, is here. Seeing the writing on the wall, companies like ExxonMobil, Shell, and Saudi Aramco are heavily investing in petrochemicals, which are used to make plastic and are expected to make up half of oil demand growth between now and 2050, according to the International Energy Agency (IEA). As Armco president and CEO Amin Nasser has reassured his cohorts, oil demand from petrochemicals is expected to remain high “no matter which energy transition scenario plays out.”
But I’m getting ahead of myself.
This story starts with much cuter villains: my cats.
Meet the adorable antiheroes of this story, Marinka and Virginia:
This whole piece is just an excuse to show you a picture of my cats.Jeva Lange/Heatmap
These two cutie pies don’t know it, but they diligently contribute to the 5.1 million tons of feces produced by America’s dogs and cats every year. One estimate of the dog sector alone found that disposing of all that waste adds some 500 million single-use bags to U.S. landfills annually.
The evils of single-use plastic bags have already been drilled into most of our heads by now: They take years to break down and when they do, they don’t decompose but rather turn into tiny microplastics that end up in the soil, waterways, food chain, and even our bloodstreams and breast milk. There is one seemingly great and trendy way to get around this: compostable bags!
Alas, if something sounds too good to be true, it is. For one thing, the “compostable” claims made by eco-friendly pet companies are wildly misleading. Though brands like to imply that their bags decompose and disappear like any other yard waste, these products only break down within a year under the extremely specific conditions of a commercial composting facility — very, very few of which even accept pet waste in the first place. As a result, the FTC has flagged that “compostable claims for these products are generally untrue.”
A "compostable" poop bag available on Chewy.com...Chewy.com
...and why you should always read the fine print.Chewy.com
Companies love to exploit consumers’ lack of knowledge around these terms and processes, though, and are mostly free to do so since the language isn’t strongly regulated. Often brands will brag that their compostable bags meet the “ASTM D6400 standard,” which just means they meet the industrial composting standard — again, pretty useless for us in this context. (Touting the ASTM D6400 standard is also often a way for brands to hide that their bags are made with virgin fossil fuels … more on that soon).
The bigger question when it comes to composting pet waste is, do we even want to? Dogs and cats are meat eaters, which means their poop contains parasites and bacteria like roundworms and hookworms, which can last for years in the soil and even be passed onto humans if used as a fertilizer for edible plants. While maybe this doesn’t sound like it could be that big of a problem, it is: “A study by the Bureau of Sanitation found that 60% of the bacteria in a Marina Del Rey, [California,] waterway was because of animals, domesticated and feral,” the Los Angeles Times reports. Gross.
This is one time you’ll ever hear me say that dog people have it better, though. Done correctly, dog owners actually can home compost dog waste if they’re so inclined. That said, a major downside of compostable bags is that they seem to lead some people to the impression that they can litter trails and parks with their “green” bags since the bags will eventually “go away.” As previously discussed: No, they won’t.
Cat waste, however, never basically should end up in your garden: Felines carry the parasite Toxoplasma gondii, which can be passed onto humans via compost but has been found to kill wildlife, including the sea otters in California. “Toxoplasma infections contribute to the deaths of 8 percent of otters that are found dead, and is the primary cause of death in 3 percent,” The New York Times explains. While feral cats used to be blamed for spreading the parasite, new evidence shows house cats almost certainly are, too — through their waste.
So compostable pet waste bags are out. As one municipality put it, dog and cat poop should be treated like what it is: not a fertilizer, but a pollutant. That means it needs to be sequestered, one way or another, in a landfill.
Just going to nip this one in the bud. For the same reason that composting pet waste isn’t advisable due to parasites and bacteria in four-legged meat-eaters’ feces, flushable pet waste bags and litter aren’t a safe or responsible choice, either.
Many waste treatment facilities don’t kill Toxoplasma, so putting cat poop in the toilet just expedites its journey into your local waterway. Indeed, in responding to an utterly unhinged email I sent them about cat waste, the California Association of Sanitation Agencies confirmed that “the only thing that should be flushed is human waste and toilet paper.”
Biodegradable pet waste bags are what radicalized me.
At first glance, these bags appear to be the best option. A number of them come on the recommendation of the sustainability website Treehugger. The product websites usually feature blogs full of reassuring information about how harmful plastic waste is, or boast 1% for the Planet certifications, or mention something about being made of cornstarch. Even the bags are green!
And almost all of them, despite their lofty claims, are made using virgin fossil fuels.
Polybutylene Adipate Terephthalate, or “PBAT,” is a biodegradable plastic made from the petrochemicals butanediol, purified terephthalic acid (PTA), and adipic acid. Translation: Fossil fuels must be extracted in order to make any bag that contains PBAT, which is virtually all of them.
Companies are exceptionally sneaky about this, though. Some of the brands boast outright about using PBAT as a traditional plastic alternative, likely assuming customers have no idea what the acronym means and won’t bother looking it up. Yet as Alice Judge, a former veterinarian and co-founder of the U.K.-based sustainable pet website Pet Impact, found in her own investigation, PBAT rarely makes up less than 60% of these supposedly “plant-based” pet waste bags. “There is some really concerning greenwashing and outright lying” going on in the industry, she told me. “We’ve found brands that are very big, reputable brands even saying explicitly ‘100% plant-based’ and in the same sentence saying ‘made from cornstarch and PBAT.’”
"Zero plastic" — but contains a fossil fuel-derived chemical called PBAT.Sirwaggingtons.com
PBAT is typically combined with cornstarch or sugarcane, so a “plant-based” bag advertising those ingredients can often be a tip-off that a fossil fuel product is also involved. Additionally, companies will frequently flag on their packaging that they meet the ASTM D6400 or BPI standards, though these have no provisions against certifying biodegradable products that contain PBAT.
Pet waste bag companies appear to go out of their way to avoid these admissions. Doggy Do Good, a popular sustainable pet waste company, told me in an email they use a “proprietary bio-based material” for “60.9% of the composition of their bags” — that is, the expected amount of PBAT — and added that “this fully biodegradable copolymer is an excellent alternative to polyethylene.” When I pressed to clarify if their proprietary “biodegradable copolymer” in question was PBAT, as I suspected, they stopped replying to my emails. The Original Poop Bag, another green bag company, didn’t answer me at all when I asked if their bags contained the fossil fuel product.
Despite these avoidance tactics, biodegradable bag companies aren’t using PBAT because they nefariously want to ruin the planet. It’s just the dirty secret of the pet waste bag business. As Judge explained in a blog post, “All poo bags have to include PBAT for strength and structure. If they were 100% plant-based, they would turn to mush very quickly when wet, lack strength, and tear easily (some qualities you really don’t want in a poo bag!).”
Fair enough. It’s the lack of transparency that is the problem: Most of these companies are selling fossil fuel-based products to customers who think they’re buying bags made from corn.
What's the other 62%?Doggydogood.com
Ultimately, there are two ways to think about the impact of the pet waste bags you buy: the impact of the materials used to make them and the impact of their disposal. If the latter is your biggest concern — what happens to bags after they’ve been used — biodegradable and “plant-based” bags are still probably the best, if imperfect, option available on the market. You can throw them in the trash (where they belong because again, pet poop is a pollutant) but also know at least that they’ll eventually biodegrade in a landfill (it should be noted, though, that everything is technically biodegradable, and the word means nothing without specification about the timeline and conditions).
From an “input” perspective — what the bags are made of, and how — biodegradable and “plant-based” bags are a little less exciting. They require less virgin fossil fuel than buying a bag entirely made out of traditional single-use plastic, though some research has suggested there is “no real difference in lifetime emissions between” products made with traditional plastic and those made from bioplastics. By another estimate, greenhouse gas emissions “are typically higher for bio-based plastics than recycled and virgin plastics” because “corn requires large amounts of energy, space, and water to grow industrially” and “turning the corn starch (once cultivated) into a polymer requires considerable energy.”
There is one major exception to all of this: Avoid “oxo-biodegradable” products. These are banned in the EU because they break down, sure — but into toxic microplastics.
Though they’re comparatively rare, you can find “recycled plastic” pet waste bags on the market. They apparently cut down on virgin fossil fuels by recycling plastic that’s already been extracted. (Judge’s company, Pet Impact, sells its own poo bag made from recycled ocean plastic, oyster shell waste, and “about 25 to 30%” virgin fossil fuels).
Even 100% recycled materials have their problems.
But while recycled plastic sounds great, it has — you guessed it — its own complications.
“Chemical” or “advanced” plastic recycling is the current sweetheart of the oil and gas industry, despite evidence that recycling plastic isn’t nearly as good as it’s chalked up to be. For one thing, the process of converting old plastics into new plastics is incredibly emissions-intensive and thus requires the burning of fossil fuels to generate the required energy. The recycling process can also spew cancer-causing chemicals into the air that disproportionately poison low-income communities of color, like those in “Cancer Alley.”
This is a problem that stretches far beyond the humble poo bags: Hundreds of companies now sell everything from clothes to shoes to shampoo bottles on the boast that they’re made from recycled plastics. Yet “by feigning ‘recycling’ (really, downcycling) of plastic pollution, companies can divert attention from their role in perpetuating this crisis while pulling in profits,” stresses the advocacy group Plastic Pollution Coalition. Recycled plastic can be just another smokescreen when what’s really needed is a reduction of single-use plastics altogether.
But it was reducing single-use plastics that got me into this whole mess in the first place.
In March 2020, a month when nothing else of note was happening, New York City banned single-use carryout plastic bags, joining San Francisco and a number of other towns around the country. But like many pet owners, grocery store plastic bags had been our go-to litter scooping bags. As we became more conscious of single-use plastics in some parts of our lives, it led us to buy … a bunch of single-use plastics to use for our pets.
As the pandemic wore on, my husband and I eventually decided to fly across the country with Marinka and Virginia in order to be with our families. There, my stepmother introduced us to a revolutionary new poop bag. It didn’t require the extraction of any new fossil fuels, and while it doesn’t break down in a landfill, it also won’t poison any otters.
The name of this holy grail of poop bags? Trash.
Empty bread bags can become the perfect chutes for scoops of litter. Plastic packaging gets a second life as a final resting place for kitty unmentionables. Bags of dry cat food, once exhausted, can be refilled.
This isn’t a perfect solution, either (for example, “produce bags aren’t engineered to be particularly durable, nor to hold in liquids or odors,” Wirecutter warns with the confidence of experience). But if I’ve learned anything in this mad, scatological journey, it’s that there is no perfect solution. What satisfies one person’s environmental concerns — about greenhouse gas emissions, fossil fuel extraction, or waste and pollution — might not satisfy someone else’s. And at a certain point, you have to make a choice, and likely a compromise, and then move on to focusing on the things that make a bigger difference, like what you drive, where you get your power from, or what you eat.
All this is to say, the trash method works for me because it makes single-use plastics destined for the landfill anyway into twice-use plastics. And at least it allows me not to think about cat poop anymore.
I think I’ve done enough of that to last me a lifetime.
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On a new plan for an old site, tariffs on Canada, and the Grain Belt Express
Current conditions: Phoenix will “cool” to 108 degrees Fahrenheit today after hitting 118 degrees on Thursday, its hottest day of the year so far • An extreme wildfire warning is in place through the weekend in Scotland • University of Colorado forecasters decreased their outlook for the 2025 hurricane season to 16 named storms, eight hurricanes, and three major hurricanes after a quiet June and July.
President Trump threatened a 35% tariff on Canadian imports on Thursday, giving Prime Minister Mark Carney a deadline of August 1 before the levies would go into effect. The move follows months of on-again, off-again threats against Canada, with former Canadian Prime Minister Justin Trudeau having successfully staved off the tariffs during talks in February. Despite those earlier negotiations, Trump held firm on his 50% tariff on steel and aluminum, which will have significant implications for green manufacturing.
As my colleagues Matthew Zeitlin and Robinson Meyer have written, tariffs on Canadian imports will affect the flow of oil, minerals, and lumber, as well as possibly break automobile supply chains in the United States. It was unclear as of Thursday, however, whether Trump’s tariffs “would affect all Canadian goods, or if he would follow through,” The New York Times reports. The move follows Trump’s announcement this week of tariffs on several other significant trade partners like Japan and South Korea, as well as a 50% tariff on copper.
The long beleaguered Lava Ridge Wind Project, formally halted earlier this year by an executive order from President Trump, might have a second life as the site for small modular reactors, Idaho News 6 reports. Sawtooth Energy Development Corporation has proposed installing six small nuclear power generators on the former Lava Ridge grounds in Jerome County, Idaho, drawn to the site by the power transmission infrastructure that could connect the region to the Midpoint Substation and onto the rest of the Western U.S. The proposed SMR project would be significantly smaller in scale than Lava Ridge, which would have produced 1,000 megawatts of electricity on a 200,000-acre footprint, sitting instead on 40 acres and generating 462 megawatts, enough to power 400,000 homes.
Sawtooth Energy plans to hold four public meetings on the proposal beginning July 21. The Lava Ridge Wind Project had faced strong local opposition — we named it the No. 1 most at-risk project of the energy transition last fall — due in part to concerns about the visibility of the turbines from the Minidoka National Historic Site, the site of a Japanese internment camp.
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Republican Senator Josh Hawley of Missouri said on social media Thursday that Energy Secretary Chris Wright had assured him that he will be “putting a stop to the Grain Belt Express green scam.” The Grain Belt Express is an 804-mile-long, $11 billion planned transmission line that would connect wind farms in Kansas to energy consumers in Missouri, Illinois, and Indiana, which has been nearing construction after “more than a decade of delays,” The New York Times reports. But earlier this month, Missouri Attorney General Andrew Bailey, a Republican, put in a request for the local public service commission to reconsider its approval, claiming that the project had overstated the number of jobs it would create and the cost savings for customers. Hawley has also been a vocal critic of the project and had asked the Energy Department to cancel its conditional loan guarantee for the transmission project.
New electric vehicles sold in Europe are significantly more environmentally friendly than gas cars, even when battery production is taken into consideration, according to a new study by the International Council on Clean Transportation. Per the report, EVs produce 73% less life-cycle greenhouse gas emissions than combustion engine cars, even considering production — a 24% improvement over 2021 estimates. The gains are also owed to the large share of renewable energy sources in Europe, and factor in that “cars sold today typically remain on the road for about 20 years, [and] continued improvement of the electricity mix will only widen the climate benefits of battery electric cars.” The gains are exclusive to battery electric cars, however; “other powertrains, including hybrids and plug-in hybrids, show only marginal or no progress in reducing their climate impacts,” the report found.
Aryna Sabalenka attempts to cool down during her Ladies' Singles semi-final at Wimbledon on Thursday.Julian Finney/Getty Images
With the United Kingdom staring down its third heatwave in a month this week, a new study warns of dire consequences if homes and cities do not adapt to the new climate reality. According to researchers at the University College London and the London School of Hygiene and Tropical Medicine, heat-related deaths in England and Wales could rise 50-fold by the 2070s, jumping from a baseline of 634 deaths to 34,027 in a worst-case scenario of 4.3 degrees Celsius warming, a high-emissions pathway.
The report specifically cited the aging populations of England and Wales, as older people become more vulnerable to the impacts of extreme heat. Low adoption of air conditioning is also a factor: only 2% to 5% of English households use air conditioning, although that number may grow to 32% by 2050. “We can mitigate [the] severity” of the health impacts of heat “by reducing greenhouse gas emissions and with carefully planned adaptations, but we have to start now,” UCL researcher Clare Heaviside told Sky News.
This week, Centerville, Ohio, rolled out high-tech recycling trucks that will use AI to scan the contents of residents’ bins and flag when items have been improperly sorted. “Reducing contamination in our recycling system lowers processing costs and improves the overall efficiency of our collection,” City Manager Wayne Davis said in a statement about the AI pilot program, per the Dayton Daily News.
Or at least the team at Emerald AI is going to try.
Everyone’s worried about the ravenous energy needs of AI data centers, which the International Energy Agency projects will help catalyze nearly 4% growth in global electricity demand this year and next, hitting the U.S. power sector particularly hard. On Monday, the Department of Energy released a report adding fuel to that fire, warning that blackouts in the U.S. could become 100 times more common by 2030 in large part due to data centers for AI.
The report stirred controversy among clean energy advocates, who cast doubt on that topline number and thus the paper’s justification for a significant fossil fuel buildout. But no matter how the AI revolution is powered, there’s widespread agreement that it’s going to require major infrastructure development of some form or another.
Not so fast, says Emerald AI, which emerged from stealth last week with $24.5 million in seed funding led by Radical Ventures along with a slew of other big name backers, including Nvidia’s venture arm as well as former Secretary of State John Kerry, Google’s chief scientist Jeff Dean, and Kleiner Perkins chair John Doerr. The startup, founded and led by Orsted’s former chief strategy and innovation officer Varun Sivaram, was built to turn data centers from “grid liabilities into flexible assets” by slowing, pausing, or redirecting AI workloads during times of peak energy demand.
Research shows this type of data center load flexibility could unleash nearly 100 gigawatts of grid capacity — the equivalent of four or five Project Stargates and enough to power about 83 million U.S. homes for a year. Such adjustments, Sivaram told me, would be necessary for only about 0.5% of a data center’s total operating time, a fragment so tiny that he says it renders any resulting training or operating performance dips for AI models essentially negligible.
As impressive as that hypothetical potential is, whether a software product can actually reduce the pressures facing the grid is a high stakes question. The U.S. urgently needs enough energy to serve that data center growth, both to ensure its economic competitiveness and to keep electricity bills affordable for Americans. If an algorithm could help alleviate even some of the urgency of an unprecedented buildout of power plants and transmission infrastructure, well, that’d be a big deal.
While Emerald AI will by no means negate the need to expand and upgrade our energy system, Sivaram told me, the software alone “materially changes the build out needs to meet massive demand expansion,” he said. “It unleashes energy abundance using our existing system.”
Grand as that sounds, the fundamental idea is nothing new. It’s the same concept as a virtual power plant, which coordinates distributed energy resources such as rooftop solar panels, smart thermostats, and electric vehicles to ramp energy supply either up or down in accordance with the grid’s needs.
Adoption of VPPs has lagged far behind their technical potential, however. That’s due to a whole host of policy, regulatory, and market barriers such as a lack of state and utility-level rules around payment structures, insufficient participation incentives for customers and utilities, and limited access to wholesale electricity markets. These programs also depend on widespread customer opt-in to make a real impact on the grid.
“It’s really hard to aggregate enough Nest thermostats to make any kind of dent,”” Sivaram told me. Data centers are different, he said, simply because “they’re enormous, they’re a small city.” They’re also, by nature, virtually controllable and often already interconnected if they’re owned by the same company. Sivaram thinks the potential of flexible data center loads is so promising and the assets themselves so valuable that governments and utilities will opt to organize “bespoke arrangements for data centers to provide their services.”
Sivaram told me he’s also optimistic that utilities will offer data center operators with flexible loads the option to skip the ever-growing interconnection queue, helping hyperscalers get online and turn a profit more quickly.
The potential to jump the queue is not something that utilities have formally advertised as an option, however, although there appears to be growing interest in the idea. An incentive like this will be core to making Emerald AI’s business case work, transmission advocate and president of Grid Strategies Rob Gramlich told me.
Data center developers are spending billions every year on the semiconductor chips powering their AI models, so the typical demand response value proposition — earn a small sum by turning off appliances when the grid is strained — doesn’t apply here. “There’s just not anywhere near enough money in that for a hyperscaler to say, Oh yeah, I’m gonna not run my Nvidia chips for a while to make $200 a megawatt hour. That’s peanuts compared to the bazillions [they] just spent,” Gramlich explained.
For Emerald AI to make a real dent in energy supply and blunt the need for an immediate and enormous grid buildout, a significant number of data center operators will have to adopt the platform. That’s where the partnership with Nvidia comes in handy, Sivaram told me, as the startup is “working with them on the reference architecture” for future AI data centers. “The goal is for all [data centers] to be potentially flexible in the future because there will be a standard reference design,” Sivaram said.
Whether or not data centers will go all in on Nvidia’s design remains to be seen, of course. Hyperscalers have not typically thought of data centers as a flexible asset. Right now, Gramlich said, most are still in the mindset that they need to be operating all 8,760 hours of the year to reach their performance targets.
“Two or three years ago, when we first noticed the surge in AI-driven demand, I talked to every hyperscaler about how flexible they thought they could be, because it seemed intuitive that machine learning might be more flexible than search and streaming,” Gramlich told me. By and large, the response was that while these companies might be interested in exploring flexibility “potentially, maybe, someday,” they were mostly focused on their mandate to get huge amounts of gigawatts online, with little time to explore new data center models.
“Even the ones that are talking about flexibility now, in terms of what they’re actually doing in the market today, they all are demanding 8,760 [hours of operation per year],” Gramlich told me.
Emerald AI is well aware that its business depends on proving to hyperscalers that a degree of flexibility won’t materially impact their operations. Last week, the startup released the results of a pilot demonstration that it ran at an Oracle data center in Phoenix, which proved it was able to reduce power consumption by 25% for three hours during a period of grid stress while still “assuring acceptable customer performance for AI workloads.”
It achieved this by categorizing specific AI tasks — think everything from model training and fine tuning to conversations with chatbots — from high to low priority, indicating the degree to which operations could be slowed while still meeting Oracle’s performance targets. Now, Emerald AI is planning additional, larger-scale demonstrations to showcase its capacity to handle more complex scenarios, such as responding to unexpected grid emergencies.
As transmission planners and hyperscalers alike wait to see more proof validating Emerald AI’s vision of the future, Sivaram is careful to note that his company is not advocating for a halt to energy system expansion. In an increasingly electrified economy, expanding and upgrading the grid will be essential — even if every data center in the world has a flexible load profile.
’We should be building a nationwide transmission system. We should be building out generation. We should be doing grid modernization with grid enhancing technologies,” Sivaram told me. “We just don’t need to overdo it. We don’t need the particularly massive projections that you’re seeing that are going to cause your grandmother’s electricity rates to spike. We can avoid that.”
The saga of the Greenhouse Gas Reduction Fund takes another turn.
On July 3, just after the House voted to send the reconciliation bill to Trump’s desk, a lawyer for the Department of Justice swiftly sent a letter to the U.S. Court of Appeals for the D.C. Circuit. Once Trump signed the One Big Beautiful Bill Act into law, the letter said, the group of nonprofits suing the government for canceling the biggest clean energy program in the country’s history would no longer have a case.
It was the latest salvo in the saga of the Greenhouse Gas Reduction Fund, former President Joe Biden’s green bank program, which current Environmental Protection Agency Administrator Lee Zeldin has made the target of his “gold bar” scandal. At stake is nearly $20 billion to fight climate change.
Congress created the program as part of the Inflation Reduction Act in 2022. It authorized Biden’s EPA to award that $20 billion to a handful of nonprofits that would then offer low-cost loans to individuals and organizations for solar installations, building efficiency upgrades, and other efforts to reduce emissions. The agency announced the recipients last summer, before its September deadline to get the funds out.
Then Trump took office and ordered his agency heads to pause and review all funding for Inflation Reduction Act programs.
In early March, buoyed by a covert video of a former EPA employee making an unfortunate and widely misunderstood comparison of the effort to award the funding to “throwing gold bars off the edge” of the Titanic, Zeldin notified the recipients that he was terminating their grant agreements. He cited “substantial concerns” regarding “program integrity, the award process, programmatic fraud, waste, and abuse, and misalignment with agency’s priorities.”
In court proceedings over the decision, the government has yet to cite any specific acts of fraud, waste, or abuse that justified the termination — a fact that the initial judge overseeing the case pointed out in mid-April when she ordered a preliminary injunction blocking the EPA from canceling the grants. But the EPA quickly appealed to the D.C. Circuit Court, which stayed the lower court’s injunction. The money remains frozen at Citibank, which had been overseeing its disbursement, as the parties await the appeals court’s decision.
As all of this was playing out, Congress wrote and passed the One Big Beautiful Bill Act. The new law rescinds the “unobligated” funding — money that hasn’t yet been spent or contracted out — from nearly 50 Inflation Reduction Act programs, including the Greenhouse Gas Reduction Fund. According to an estimate from the Congressional Budget Office, the remaining balance in the fund was just $19 million.
The Trump administration, however, is arguing in court that the OBBBA doesn’t just recoup that $19 million, but also the billions in awards at issue in the lawsuit. Congress has rescinded “the appropriated funds that plaintiffs sought to reinstate through this action,” Principal Deputy Assistant Attorney General Yaakov Roth wrote in his July 3 letter, implying that the awards were no longer officially “obligated” and that all of the money would have to be returned. Therefore, “it is more clear than ever that the district court’s preliminary injunction must be reversed,” he wrote.
Roth cited a statement that Shelley Moore Capito, chair of the Senate Environment and Public Works Committee, made on the floor of the Senate in June. She said she agreed with Zeldin’s decision to cancel the Greenhouse Gas Reduction Fund grants, and that it was Congress’ intent to rescind the funds that “had been obligated but were subsequently de-obligated” — about $17 billion in total. She did not acknowledge that Zeldin’s decision was being actively litigated in court.
On Monday, attorneys for the plaintiffs fired back with a message to the court that the reconciliation bill does not, in fact, change anything about the case. They argued that the EPA broke the law by canceling the grants, and that the OBBBA can’t retroactively absolve the agency. They also served up a conflicting statement that Capito made about the fund to Politico in November. “We’re not gonna go claw back money,” she said. “That’s a ridiculous thought.”
Capito’s colleague Sheldon Whitehouse, a Democrat, offered additional evidence on the floor of the Senate Wednesday. He cited the Congressional Budget Office’s score of the repeal of the program of $19 million, noting that it was the amount “EPA had remaining to oversee the program” and that “at no point in our discussions with the majority, directly or in our several conversations with the Parliamentarian, was this score disputed.” Whitehouse also called up a previous statement made by Republican Representative Morgan Griffith, a member of the House Energy and Commerce Committee, during a markup of the bill. “I just want to point out that these provisions that we are talking about only apply as far, as this bill is concerned, to the unobligated balances,” Griffith said.
Regardless, it will be up to the D.C. Circuit Court as to whether the lower court’s injunction was warranted. If it agrees, the nonprofit awardees may still, in fact, be able to get the money flowing for clean energy projects.
“Wishful thinking on the part of DOJ does not moot the ongoing litigation,” Whitehouse said.