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On drinking water, a ‘rogue’ discovery, and Northwest data centers

Current conditions: Today marks the start of the Eastern Pacific Hurricane Season, and meteorologists are monitoring two potential areas of tropical development • Millions in the Great Plains and Eastern U.S. face risks of thunderstorms, large hail, and tornadoes • Steady rain continues Thursday in the eastern Democratic Republic of Congo, where at least 100 people have died in flash floods.
1. Trump administration backtracks on promise to protect drinking water from forever chemicals
The Environmental Protection Agency announced Wednesday that it plans to rescind four Biden-era limitations on pollutants in drinking water. Per- and Polyfluoroalkyl Substances, also called PFAS or “forever chemicals,” are linked to many serious health issues, including certain cancers; as I’ve covered, they are common in products advertised as stain-proof, nonstick, and water repellent. The EPA’s decision follows Administrator Lee Zeldin’s claim less than two weeks ago that “I have long been concerned about PFAS” and “we are tackling PFAS from all of EPA’s program offices,” E&E News reports.
In the Wednesday announcement, Zeldin backpedaled from his initial call for action, claiming the agency is looking into “common-sense flexibility in the form of additional time for compliance.” He also pushed back on claims that the agency is weakening PFAS standards, per The Washington Post, saying the EPA is looking into revising the limits and that “the number might end up going lower, not higher.” Water utilities, which have balked against the high cost and difficulty of filtering PFAS out of an estimated 158 million Americans’ drinking water, praised the EPA’s delay as “the right thing.”
2. Security experts discovered ‘unexplained’ pieces of communication equipment in Chinese-made solar power inverters
U.S. energy officials have discovered “unexplained communication equipment” in some Chinese-made solar inverters, Reuters reports. Inverters help connect solar panel systems to the electric grid and allow utilities to conduct remote updates and maintenance; because China makes most inverters, power companies typically use firewalls to prevent foreign communication with the devices.
Security experts reportedly found the rogue devices during inspections. Though the sources who spoke with Reuters did not share the manufacturers of the inverters, similar communication devices were reportedly also found in some batteries from “multiple Chinese suppliers” over the past nine months. A spokesperson at the Chinese embassy in Washington pushed back on Reuters’ report, saying, “We oppose the generalization of the concept of national security, distorting and smearing China's infrastructure achievements.”
3. Northwest data centers could ‘cannibalize’ clean power in states with lower environmental protections: report

The Northwest has one of the country’s highest concentrations of data centers due to the region’s tax breaks — including low or no property taxes for many in Oregon and sales and use exemptions on equipment purchases and installations in Washington — as well as its below-average renewable power prices. But utilities “working across state lines could shift renewable resources to serve Northwest data centers, making up the difference by burning more coal and gas in places that lack strong environmental protections,” Emily Moore, the director of climate and energy at the sustainability think tank Sightline, writes in a new report.
One such example is what’s being done by Avista, an electricity service in eastern Washington and western Idaho. To meet the needs of a new 200 megawatt data center in Washington, as well as to comply with the state’s Clean Energy Transformation Act, “the company indicated it would add 95 megawatts of gas capacity in Idaho and then shift wind resources that would have served Idaho customers to Washington,” Moore writes. In essence, Washington is “cannibalizing” clean power currently serving Idahoans, and Avista is polluting “more in Idaho to make up the difference.” The report goes on to propose policy paths for Northwest leaders, including accelerating the buildout of the region’s congested electric transmission system, since “a right-sized modern grid could let data centers tap wind from Montana or sun from California instead of encouraging them to locate in states with no commitment to clean power.” You can read Sightline’s full report here.
4. BP chief economist warns China is winning the ‘new energy’ race
Michael Cohen, BP’s chief U.S. economist and head of oil and refining, warned this week that China is winning the “new energy” race with its clean technology supply chains and electric vehicles, Fortune reports. At the Enverus Evolve oil and gas conference in Houston, Cohen said the U.S. is at risk of failing “Econ 101” if it slow-walks on renewables due to resistance from the Trump administration, supply chain issues, and interest rates. He projected that global oil demand will peak in the next decade, with renewables rising from 15% to 30% of the global energy market between now and 2050.
A new report by Carbon Brief appears to back up Cohen’s analysis. The report says that renewable energy sources in China produced enough electricity in the first quarter of the year to “cut coal-power output even as demand surged,” with CO2 emissions down 1.6% year-on-year despite power demand growth. Carbon Brief adds that, if sustained, the findings would “herald a peak and sustained decline in China’s power-sector emissions.”
5. Trump family Bitcoin business adds personal stakes to energy policy
The Trump family is poised to have a fresh personal stake in U.S. electricity and energy policy as Eric Trump and Donald Trump, Jr. plan to take their Bitcoin mining firm public, E&E News reports. According to the announcement earlier this week, American Bitcoin — co-founded by Eric Trump — will merge with Gryphon Digital Mining Inc., which is already publicly traded.
Initially a subsidiary of Hut 8, an energy infrastructure partner with more than 1,000 megawatts of energy capacity, American Bitcoin boasted that with the merger, it will achieve “mining leadership” by leveraging Hut 8’s “energy advantage, rapid execution, and proven team.” Cryptocurrency mining is highly energy-intensive, accounting for an estimated 2.3% of the nation’s electricity use last year, and President Trump’s aspirations to have it “mined, minted, and made in the USA” are part of what his administration has used to justify its energy emergency. With American Bitcoin, the Trump family is also “delving deeper into the energy space where federal policies under Trump intersect directly with access to electricity and fuels,” E&E News writes, noting that Eric Trump stated at the launch of the company last April that “We’ve got the best energy policy in this country. That policy is only getting better.”

Nigerian author Abi Daré has won the inaugural Climate Fiction Prize for her novel And So I Roar. The book “follows fourteen-year-old Adunni from her life in Lagos, where she is excited to finally enroll in school, to her home village where she is summoned to face charges for events that are in fact caused by climate change.”
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Forget data centers. Fire is going to make electricity much more expensive in the western United States.
A tsunami is coming for electricity rates in the western United States — and it’s not data centers.
Across the western U.S., states have begun to approve or require utilities to prepare their wildfire adaptation and insurance plans. These plans — which can require replacing equipment across thousands of miles of infrastructure — are increasingly seen as non-negotiable by regulators, investors, and utility executives in an era of rising fire risk.
But they are expensive. Even in states where utilities have not yet caused a wildfire, costs can run into the tens or hundreds of millions of dollars. Of course, the cost of sparking a fire can be much higher.
At least 10 Western states have recently approved or are beginning to work on new wildfire mitigation plans, according to data from E9 Insights, a utility research and consulting firm. Some utilities in the Midwest and Southeast have now begun to put together their own proposals, although they are mostly at an earlier phase of planning.
“Almost every state in the West has some kind of wildfire plan or effort under way,” Sam Kozel, a researcher at E9, told me. “Even a state like Missouri is kicking the tires in some way.”
The costs associated with these plans won’t hit utility customers for years. But they reflect one more building cost pressure in the electricity system, which has been stressed by aging equipment and rising demand. The U.S. Energy Information Administration already expects wholesale electricity prices to increase 8.5% in 2026.
The past year has seen a new spate of plans. In October, Colorado’s largest utility Xcel Energy proposed more than $845 million in new spending to prepare for wildfires. The Oregon utility Portland General Electric received state approval to spend $635 million on “compliance-related upgrades” to its distribution system earlier this month. That category includes wildfire mitigation costs.
The Public Utility Commission of Texas issued its first mandatory wildfire-mitigation rules last month, which will require utilities and co-ops in “high-risk” areas to prepare their own wildfire preparedness programs.
Ultimately, more than 140 utilities across 19 states have prepared or are working on wildfire preparedness plans, according to the Pacific Northwest National Laboratory.
It will take years for this increased utility spending on wildfire preparedness to show up in customers’ bills. That’s because utilities can begin spending money for a specific reason, such as disaster preparedness, as soon as state regulators approve their plan to do so. But utilities can’t begin passing those costs to customers until regulators review their next scheduled rate hike through a special process known as a rate case.
When they do get passed through, the plans will likely increase costs associated with the distribution system, the network of poles and wires that deliver electricity “the last mile” from substations to homes and businesses. Since 2019, rising distribution-related costs has driven the bulk of electricity price inflation in the United States. One risk is that distribution costs will keep rising at the same time that electricity itself — as well as natural gas — get more expensive, thanks to rising demand from data centers and economic growth.
California offers a cautionary tale — both about what happens when you don’t prepare for fire, and how high those costs can get. Since 2018, the state has spent tens of billions to pay for the aftermath of those blazes that utilities did start and remake its grid for a new era of fire. Yet it took years for those costs to pass through to customers.
“In California, we didn’t see rate increases until 2023, but the spending started in 2018,” Michael Wara, a senior scholar at the Woods Institute for the Environment and director of the Climate and Energy Policy Program at Stanford University, told me.
The cost of failing to prepare for wildfires can, of course, run much higher. Pacific Gas and Electric paid more than $13.5 billion to wildfire victims in California after its equipment was linked to several deadly fires in the state. (PG&E underwent bankruptcy proceedings after its equipment was found responsible for starting the 2018 Camp Fire, which killed 85 people and remains the deadliest and most destructive wildfire in state history.)
California now has the most expensive electricity in the continental United States.
Even the risk of being associated with starting a fire can cost hundreds of millions. In September, Xcel Energy paid a $645 million settlement over its role in the 2021 Marshall fire, even though it has not admitted to any responsibility or negligence in the fire.
Wara’s group began studying the most cost-effective wildfire investments a few years ago, when he realized the wave of cost increases that had hit California would soon arrive for other utilities.
It was partly “informed by the idea that other utility commissions are not going to allow what California has allowed,” Wara said. “It’s too expensive. There’s no way.”
Utilities can make just a few cost-effective improvements to their systems in order to stave off the worst wildfire risk, he said. They should install weather stations along their poles and wires to monitor actual wind conditions along their infrastructure’s path, he said. They should also install “fast trip” conductors that can shut off powerlines as soon as they break.
Finally, they should prepare — and practice — plans to shut off electricity during high-wind events, he said. These three improvements are relatively cheap and pay for themselves much faster than upgrades like undergrounding lines, which can take more than 20 years to pay off.
Of course, the cost of failing to prepare for wildfires is much higher than the cost of preparation. From 2019 to 2023, California allowed its three biggest investor-owned utilities to collect $27 billion in wildfire preparedness and insurance costs, according to a state legislative report. These costs now make up as much as 13% of the bill for customers of PG&E, the state’s largest utility.
State regulators in California are currently considering the utility PG&E’s wildfire plan for 2026 to 2028, which calls for undergrounding 1,077 miles of power lines and expanding vegetation management programs. Costs from that program might not show up in bills until next decade.
“On the regulatory side, I don’t think a lot of these rate increases have hit yet,” Kozel said.
California may wind up having an easier time adapting to wildfires than other Western states. About half of the 80 million people who live in the west live in California, according to the Census Bureau, meaning that the state simply has more people who can help share the burden of adaptation costs. An outsize majority of the state’s residents live in cities — which is another asset, since wildfire adaptation usually involves getting urban customers to pay for costs concentrated in rural areas.
Western states where a smaller portion of residents live in cities, such as Idaho, might have a harder time investing in wildfire adaptation than California did, Wara said.
“The costs are very high, and they’re not baked in,” Wara said. “I would expect electricity cost inflation in the West to be driven by this broadly, and that’s just life. Climate change is expensive.”
The administration has already lost once in court wielding the same argument against Revolution Wind.
The Trump administration says it has halted all construction on offshore wind projects, citing “national security concerns.”
Interior Secretary Doug Burgum announced the move Monday morning on X: “Due to national security concerns identified by @DeptofWar, @Interior is PAUSING leases for 5 expensive, unreliable, heavily subsidized offshore wind farms!”
There are only five offshore wind projects currently under construction in U.S. waters: Vineyard Wind, Revolution Wind, Coastal Virginia Offshore Wind, Sunrise Wind, and Empire Wind. Burgum confirmed to Fox Business that these were the five projects whose leases have been targeted for termination, and that notices were being sent to the project developers today to halt work.
“The Department of War has come back conclusively that the issues related to these large offshore wind programs create radar interference, create genuine risk for the U.S., particularly related to where they are in proximity to our East Coast population centers,” Burgum told the network’s Maria Bartiromo.
David Schoetz, a spokesperson for Empire Wind's developer Equinor, told me the company is “aware of the stop work order announced by the Department of Interior,” and that the company is “evaluating the order and seeking further information from the federal government.” Schoetz added that we should ”expect more to come” from the company.
This action takes a kernel of truth — that offshore wind can cause interference with radar communication — and blows it up well beyond its apparent implications. Interior has cited reports from the military they claim are classified, so we can’t say what fresh findings forced defense officials to undermine many years of work to ensure that offshore wind development does not impede security or the readiness of U.S. armed forces.
The Trump administration has already lost once in court with a national security argument, when it tried to halt work on Revolution Wind citing these same concerns. The government’s case fell apart after project developer Orsted presented clear evidence that the government had already considered radar issues and found no reason to oppose the project. The timing here is also eyebrow-raising, as the Army Corps of Engineers — a subagency within the military — approved continued construction on Vineyard Wind just three days ago.
It’s also important to remember where this anti-offshore wind strategy came from. In January, I broke news that a coalition of activists fighting against offshore wind had submitted a blueprint to Trump officials laying out potential ways to stop projects, including those already under construction. Among these was a plan to cancel leases by citing national security concerns.
In a press release, the American Clean Power Association took the Trump administration to task for “taking more electricity off the grid while telling thousands of American workers to leave the job site.”
“The Trump Administration’s decision to stop construction of five major energy projects demonstrates that they either don’t understand the affordability crises facing millions of Americans or simply don't care,” the group said. “On the first day of this Administration, the President announced an energy emergency. Over the last year, they worked to create one with electricity prices rising faster under President Trump than any President in recent history."
What comes next will be legal, political and highly dramatic. In the immediate term, it’s likely that after the previous Revolution victory, companies will take the Trump administration to court seeking preliminary injunctions as soon as complaints can be drawn up. Democrats in Congress are almost certainly going to take this action into permitting reform talks, too, after squabbling over offshore wind nearly derailed a House bill revising the National Environmental Policy Act last week.
Heatmap has reached out to all of the offshore wind developers affected, and we’ll update this story if and when we hear back from them.
Editor’s note: This story has been updated to reflect comment from Equinor and ACP.
On Redwood Materials’ milestone, states welcome geothermal, and Indian nuclear
Current conditions: Powerful winds of up to 50 miles per hour are putting the Front Range states from Wyoming to Colorado at high risk of wildfire • Temperatures are set to feel like 101 degrees Fahrenheit in Santa Fe in northern Argentina • Benin is bracing for flood flooding as thunderstorms deluge the West African nation.

New York Governor Kathy Hochul inked a partnership agreement with Ontario Premier Doug Ford on Friday to work together on establishing supply chains and best practices for deploying next-generation nuclear technology. Unlike many other states whose formal pronouncements about nuclear power are limited to as-yet-unbuilt small modular reactors, the document promised to establish “a framework for collaboration on the development of advanced nuclear technologies, including large-scale nuclear” and SMRs. Ontario’s government-owned utility just broke ground on what could be the continent’s first SMR, a 300-megawatt reactor with a traditional, water-cooled design at the Darlington nuclear plant. New York, meanwhile, has vowed to build at least 1 gigawatt of new nuclear power in the state through its government-owned New York Power Authority. Heatmap’s Matthew Zeitlin wrote about the similarities between the two state-controlled utilities back when New York announced its plans. “This first-of-its-kind agreement represents a bold step forward in our relationship and New York’s pursuit of a clean energy future,” Hochul said in a press release. “By partnering with Ontario Power Generation and its extensive nuclear experience, New York is positioning itself at the forefront of advanced nuclear technology deployment, ensuring we have safe, reliable, affordable, and carbon-free energy that will help power the jobs of tomorrow.”
Hochul is on something of a roll. She also repealed a rule that’s been on the books for nearly 140 years that provided free hookups to the gas system for new customers in the state. The so-called 100-foot-rule is a reference to how much pipe the state would subsidize. The out-of-pocket cost for builders to link to the local gas network will likely be thousands of dollars, putting the alternative of using electric heat and cooking appliances on a level playing field. “It’s simply unfair, especially when so many people are struggling right now, to expect existing utility ratepayers to foot the bill for a gas hookup at a brand new house that is not their own,” Hochul said in a statement. “I have made affordability a top priority and doing away with this 40-year-old subsidy that has outlived its purpose will help with that.”
Redwood Materials, the battery recycling startup led by Tesla cofounder J.B. Straubel, has entered into commercial production at its South Carolina facility. The first phase of the $3.5 billion plant “has brought a system online that’s capable of recovering 20,000 metric tons of critical minerals annually, which isn’t full capacity,” Sawyer Merritt, a Tesla investor, posted on X. “Redwood’s goal is to keep these resources here; recovered, refined, and redeployed for America’s advantage,” the company wrote in a blog post on its website. “This strategy turns yesterday’s imports into tomorrow’s strategic stockpile, making the U.S. stronger, more competitive, and less vulnerable to supply chains controlled by China and other foreign adversaries.”
A 13-state alliance at the National Association of State Energy Officials launched a new accelerator program Friday that’s meant to “rapidly expand geothermal power development.” The effort, led by state energy offices in Arizona, California, Colorado, Hawaii, Idaho, Louisiana, Montana, Nevada, New Mexico, Oregon, Pennsylvania, Utah, and West Virginia, “will work to establish statewide geothermal power goals and to advance policies and programs that reduce project costs, address regulatory barriers, and speed the deployment of reliable, firm, flexible power to the grid.” Statements from governors of red and blue states highlighted the energy source’s bipartisan appeal. California Governor Gavin Newsom, a Democrat, called geothermal a key tool to “confront the climate crisis.” Idaho’s GOP Governor Brad Little, meanwhile, said geothermal power “strengthens communities, supports economic growth, and keeps our grid resilient.” If you want to review why geothermal is making a comeback, read this piece by Matthew.
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Yet another pipeline is getting the greenlight. Last week, the Federal Energy Regulatory Commission approved plans for Mountain Valley’s Southgate pipeline, clearing the way for construction. The move to shorten the pipeline’s length from 75 miles down to 31 miles, while increasing the diameter of the project to 30 inches from between 16 and 23 inches, hinged on whether FERC deemed the gas conduit necessary. On Thursday, E&E News reported, FERC said the developers had demonstrated a need for the pipeline stretching from the existing Mountain Valley pipeline into North Carolina.
Last week, I told you about a bill proposed in India’s parliament to reform the country’s civil liability law and open the nuclear industry to foreign companies. In the 2010s, India passed a law designed to avoid another disaster like the 1984 Bhopal chemical leak that killed thousands but largely gave the subsidiary of the Dow Chemical Corporation that was responsible for the accident a pass on payouts to victims. As a result, virtually no foreign nuclear companies wanted to operate in India, lest an accident result in astronomical legal expenses in the country. (The one exception was Russia’s state-owned Rosatom.) In a bid to attract Western reactor companies, Indian lawmakers in both houses of parliament voted to repeal the liability provisions, NucNet reported.
The critically endangered Lesser Antillean iguana has made a stunning recovery on the tiny, uninhabited islet of Prickly Pear East near Anguilla. A population of roughly 10 breeding-aged lizards ballooned to 500 in the past five years. “Prickly Pear East has become a beacon of hope for these gorgeous lizards — and proves that when we give native wildlife the chance, they know what to do,” Jenny Daltry, Caribbean Alliance Director of nature charities Fauna & Flora and Re:wild, told Euronews.