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Rob and Jesse catch up on the Greenhouse Gas Reduction Fund with former White House official Kristina Costa.

The Inflation Reduction Act dedicated $27 billion to build a new kind of climate institution in America — a network of national green banks that could lend money to companies, states, schools, churches, and housing developers to build more clean energy and deploy more next-generation energy technology around the country.
It was an innovative and untested program. And the Trump administration is desperately trying to block it. Since February, Trump’s criminal justice appointees — led by Ed Martin, the interim U.S. attorney for the District of Columbia — have tried to use criminal law to undo the program. After failing to get the FBI and Justice Department to block the flow of funds, Trump officials have successfully gotten the program’s bank partner to freeze relevant money. The new green banks have sued to gain access to the money.
On this week’s episode of Shift Key, Rob and Jesse talk with Kristina Costa, who has been tracking the effort to bankrupt the green banks. Costa helped lead the Inflation Reduction Act’s implementation in the White House from 2022 to 2025 — and is a previous Shift Key guest. She joins us to discuss how Trump is weaponing criminal law to block a climate program, whether there’s any precedent for his actions, and what could come next in the legal battle. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from our conversation:
Robinson Meyer: There's kind of two lines you hear from the Trump administration about this, two claims made by the Trump administration about the reason for these seizures, and I just wanna talk about them briefly because this is an unprecedented action. We should look at why the government has claimed that it needs to take this unprecedented action.
The first has to do with this video made by Project Veritas, a kind of conservative media organization …
Kristina Costa: A hit squad.
Meyer: A hit squad that recorded, unwittingly, an EPA official who described the EPA’s actions during December 2024, between the loss of the election and the inauguration, as “throwing gold bars off the Titanic.” That the agency was so eager and desperate to spend as much of the IRA down as it could before the Trump administration took office that it was like they were throwing gold bars off the Titanic — you know, a sinking ship.
The EPA administrator has fixated on this line and described it as waste and self-dealing, suggesting reckless financial mismanagement, blatant conflicts of interest, astonishing sums of tax dollars awarded to unqualified recipients and severe deficiencies of regulatory oversight.
You were involved in setting up the IRA. I wonder, first of all, just how do you reflect on this episode? And second of all, was the Biden administration doing the proverbial version of throwing gold bars off the Titanic during the post-election period?
Costa: Yeah, so I mean, it falls apart as any sort of quote-unquote evidence in what's happening with the Greenhouse Gas Reduction Fund if you just believe in the linear nature of time. So, as I said, we announced EPA made the selections in April of 2024. The funds were fully obligated in August of 2024. Grantees were starting to make announcements about investments in October of 2024 — all dates which precede election day by weeks to months. And so it is just a complete fabrication on the part of Lee Zeldin that there was any sort of inappropriate action on the part of the Biden EPA or any of the other agencies in doing what Congress directed us to do, which was to award and obligate funds to recipients consistent with the provisions of the Inflation Reduction Act that authorized and appropriated funds for the programs.
We had also — and I think I might have said this when I was with you guys in December — one of the first things that we did, from the White House implementation team, was to meet with all of our grant agencies and, in September and October of 2022, set targets for them for how much funding we wanted them to try to award and obligate by the end of the administration. And we set a goal, basically, that we would be aiming to have at least 80% of the available funds obligated by the end of 2024. And we hit that. And so the idea that there was some massive acceleration post-election — like, were there some contracts that the agencies obligated in December and January that, in the event of a Kamala Harris administration, they would've maybe obligated in February and March instead? Sure. I'm not going to say otherwise, but those grants had been made already. There wasn't this rush of actual decision-making.
Music for Shift Key is by Adam Kromelow.
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Cement, plywood, and some electronic equipment will face 50% levies. But the real cost is much higher.
Here we go again. The United States will impose new 50% tariffs on a slew of imports from Canada, the White House announced on Monday afternoon. The trade levies — which will hit more than 500 categories of goods, from anoraks, beer, and curtains, to yarn, wool, and whey protein — will take effect in 30 days.
The new tariffs don’t seem to be wildfire-related. President Trump threatened to impose new tariffs last week after smoke from Canadian wildfires drifted south over the northern U.S. border, but administration officials have claimed to CNN that these new levies were already in motion by then.
Even so, a few aspects of the announcement stand out. Most important, at least from a generalist perspective, is the legal mechanism that President Trump is using to apply them: Section 338 of the Smoot-Hawley Tariff Act. This passage, which has never been used by a previous president to levy tariffs, allows the United States to tax trade from countries that the president says have “discriminated against” U.S. commerce.
Significant, too, is the fact the White House asserts this new kind of tariff could apply to any kind of product — even those that would normally be covered by the North American free trade pact, the U.S.-Mexico-Canada Agreement. So far, the “Big Three” automakers — whose supply chains cross the Mexican or Canadian borders half a dozen times before a car is finally assembled — have avoided major tariff danger because auto parts and other inputs fall under the USMCA’s auspices. If the White House now thinks it can levy taxes despite that pact, then the risks for Ford, General Motors, and their suppliers have increased.
Energy and critical minerals are exempt from the new tariffs, so Canadian crude oil, gasoline, diesel, natural gas, and electricity will presumably keep flowing into the United States. (That explicit carve-out might be ominous in its own right, because energy had been protected by USMCA so far, too.) By omitting energy, Trump and his officials may be calculating they can avoid major inflationary hazards from this round of tariffs.
Who knows. In any case, to my eye, these tariffs do seem like they could aggravate construction costs and possibly contribute to wider U.S. inflation. There’s already some evidence that data centers are driving a new wave of inflation, for instance, by hiking construction input and labor costs. Yet data centers use a lot of cement — and cement will now face a 50% tariff under the new regime. So too will plywood, plaster, and paperboard, as well as industrial cooling equipment, chemicals, and some circuit boards.
I could keep listing the potential economic costs here — I could point out that overall inflation risk is rising or that average U.S. gas prices rose to $4 a gallon today on the Iran war news — but I think it’s important to look at least one step beyond the hits to commerce alone.
I mentioned earlier that these tariffs are meant to punish “discrimination.” In this case, some of the “discrimination” appears to be what some Canadian provinces did to retaliate against the president’s earlier tariffs. The state-owned liquor stores in Quebec and Ontario, for instance, stopped buying U.S.-made booze after Trump slapped 25% tariffs on Canada in March 2025; those boycotts are mentioned by name in today’s proclamation. Canada, you see, is not supposed to respond to Trump’s tariffs. It is just supposed to take it — just like it’s supposed to take the constant stream of falsehoods, abuse, belittling, and invasion threat.
Over the past few years, politicians and pundits have learned to respond to Trump’s policies by appealing to U.S. self-interest — by explaining how the president’s policies are making Americans poorer. It is a sensible strategy for a morally denuded era. A recent statement from Senate Minority Leader Chuck Schumer about Canada, for example, criticized the president for hurting “our closest ally and partner … right when summer tourism season is arriving.” I get the move here — and I think, in some sense, Schumer is trying to avoid polarizing Trump’s treatment of Canada along partisan lines — but Canadians are more than their tourism dollars.
For the past several years, Trump has threatened to strip Canada of its sovereignty and its dignity. He has treated what was once a deep and secure relationship as something to be bartered and mined and dissipated. It is a mucilaginous approach to statecraft, and as recent reporting has made clear, its long-term costs will exceed any simple accounting. We Americans have been robbed of an honorable friendship. Some losses cannot be counted in dollars.
In seven years of owning an electric car, I’ve done practically no maintenance. My 2019 Tesla Model 3 has gotten a new set of tires and windshield wipers, but because an EV doesn’t require oil changes or many of the other occasional chores that come with gas cars, that’s about it.
The one thing I have had to fix is the battery, and no, I don’t mean the big one that makes the car go.
Twice in those seven years, I’ve replaced the car’s 12-volt battery. This is the toolbox-sized unit that’s familiar to millions — it’s what the phrase “car battery” used to mean back before electric vehicles. Lots of new or aspiring EV drivers may not even realize their car has a second, smaller battery borrowed from combustion days. But this crucial holdover — the most recycled object on the planet, by the way, at a rate of more than 100 million annually — has already been a source of annoyance for EV engineers and drivers.
The reason behind the weird setup is straightforward. Despite the fact that EVs are effectively giant batteries on wheels, they need a backup source to operate the power windows and doors. If you’re in a car accident that disables the main battery, for instance, you need power to the doors to escape, and also a way to disconnect the high-voltage battery. Thus, the old-fashioned 12-volt battery squirreled away deep inside the car to protect it during collisions.
It’s not just a matter of backup power, either. A large, high-voltage battery would have to step down its electrical output for applications other than pushing a car down the road; it’s simpler to power them with a 12-volt battery and use the big unit to recharge the smaller one. After all, legacy carmakers have decades of experience building this kind of electrical system for gasoline-powered cars. Some EVs also use the 12-volt setup to disconnect the high-voltage power supply when the car is simply parked for a long time.
All this makes solid engineering sense. It also means that a sleek, modern EV is reliant upon the clunky car battery of yesteryear. Some drivers, including those in new Kia EVs, have said they can’t drive their cars even though there’s plenty of juice in the big unit because something went wrong with the 12-volt. As one Reddit commenter wrote: “It seems absurd to design a car that can run out of electrons and not be able to start while it is carrying 70 kWh of energy in a giant battery.” Yet that’s exactly the reality.
There are a few reasons why. As InsideEVs has noted, the rugged old 12-volt keeps getting more and more responsibility. Nowadays, the constant cellular connectivity of modem EVs — as well as features that can be used while the car is parked, such as security systems that tap into the vehicle’s exterior cameras to monitor the surrounding area — can cause a continuous drain on the 12-volt battery. That requires the car’s big battery to “wake up” and recharge the smaller one, which not only bleeds the vehicle’s driving range while it’s sitting still but also causes lots of recharging cycles for the 12-volt, prematurely aging the small battery.
Rivian had notorious problems from this issue for the older R1T and R1S and had to engineer a fix. Hyundais and Kias, meanwhile, have had longstanding issues with their Integrated Charging Control Unit, the system that recharges the 12-volt battery, that have caused a variety of recalls and headaches widely documented in online posts and videos. Chevy and Toyota have endured their own growing pains trying to make a low-voltage electrical system work well inside an EV.
But the car companies are getting smarter. Rather than duplicating what works in gas cars, more of them are building EV-specific systems with this application in mind. For example, the 12-volt in an EV doesn’t need to provide the big single burst needed to start up a gas engine, but it does need to be able to survive being subjected to more recharging cycles. In other words, it’s not that using these batteries in modern EVs is a bad idea — we just need to be smarter about how.
Perhaps EV builders one day will engineer away the old battery. Rivian, for one, has filed a patent for an electrical architecture that would work without a low-voltage battery at all. But those workarounds are a long way out. For now, even the most futuristic-feeling electric cars are stuck with the same kind of battery your dad had to jump-start in the church parking lot that time you left the AC on and the engine wasn’t running. My big, high-voltage battery might keep running forever, even as its capacity continues to diminish. But inevitably, I’ll need another small, dumb battery when this one goes kaput.
GOP lawmakers know climate change is real. But they lack political incentives to do anything about it.
The New York Times recently profiled former Senate Majority Leader Bill Frist and his increasing engagement on climate change. Many of the online comments accused him of hypocrisy. Why, they asked, did he only become concerned about climate change after leaving Congress?
It’s an understandable question.
I have spent the better part of a decade discussing climate change with Republican members of Congress and can see a frequently overlooked part of the answer. During my hundreds of one-on-one conversations with Republican senators and representatives, almost none of them deny that climate change is occurring. Most understand the science well enough, and many acknowledge privately that it presents serious long-term risks.
They don’t lack knowledge. They lack political incentives.
Members of Congress have finite political capital. Every day they must decide which issues deserve their attention. Naturally, they devote their time to the issues that voters, donors, activists, staff, and party leaders tell them matter most.
Politics is a marketplace of incentives. For decades, climate advocates have devoted their efforts to changing Republicans’ minds, but have devoted little effort to changing the incentives for Republicans to act.
The political ecosystem for Democrats could not be more different. Democrats are surrounded by organizations that continually reinforce the importance of climate policy. Environmental groups, philanthropies, labor organizations, advocacy organizations, academics, campaign donors, think tanks, and congressional staff all create an environment in which climate engagement is expected and rewarded.
Republicans experience almost none of that.
When I was quoted in the New York Times article, I described the “eco right” as “a lonely place.” I meant it literally. There are remarkably few conservative organizations whose primary mission is helping Republican elected officials develop serious climate policy. Few donors make climate engagement a condition of support. Few advocacy groups reward constructive leadership. Few congressional staff have access to a deep bench of conservative climate experts. Climate is far more often presented as a political liability than a leadership opportunity.
In that environment, addressing climate change is rarely a priority. This largely explains what puzzles many observers — that Republican leaders often become noticeably more outspoken about addressing climate change after leaving office. The science has not changed. Their incentives have.
Freed from primary elections, fundraising pressures, and the constant competition for legislative attention, they’re able to think about problems whose consequences unfold over decades instead of election cycles.
That observation leads to an uncomfortable conclusion for those of us who want stronger climate policy: Persuading Republicans that climate change is real is not just unnecessary, it’s unproductive. They know it’s real. The more important task is building the institutions that make climate engagement a priority. That means investing in conservative policy organizations, developing Republican congressional staff expertise, supporting Republican governors and state legislators, encouraging business leaders to engage, creating donor networks that reward constructive center-right leadership, and giving Republican members credible partners they can trust.
In other words, we need to make the eco-right a much less lonely place.
Building institutions requires capital, both political and financial. Today, the overwhelming majority of climate-related political spending — whether by advocacy organizations, political action committees, or philanthropically supported campaigns — flows to Democratic candidates and causes. It’s understandable. Democrats have generally been more supportive of climate action, and donors naturally want to reward those who stand with them.
But rewarding allies isn’t the same as expanding the number of them.
If the objective is durable climate policy rather than simply electing more Democrats, then the current allocation of political spending deserves reconsideration. Congress writes laws, and lasting legislation almost always requires bipartisan support. A movement that invests overwhelmingly in one party shouldn’t be surprised when the other party lacks champions, expertise, and political incentives.
Climate philanthropists, advocacy organizations, and political action committees should explicitly seek to create Republican allies by committing a more significant portion of their electoral spending to Republican candidates. This support would send a powerful signal throughout Republican politics that constructive engagement on climate change will be rewarded. More Republican candidates would respond to those incentives, and the universe of viable partners would expand.
For Republicans, the greatest opportunity lies in primary elections. While general elections determine which party governs, primaries determine what kind of Republicans and Democrats will govern. Donors should identify Republican candidates who are willing to engage on a variety of climate-related topics — from adaptation and resilience to market-based policies that reduce emissions to energy innovation — and help them succeed. The objective isn’t ideological purity. It’s to demonstrate that constructive climate leadership is politically viable within today’s Republican Party, and to give those candidates the confidence that they aren’t alone.
Over time, this approach would accomplish something today’s funding model cannot. Rather than simply rewarding an existing coalition, it would create a larger one. It would produce more Republican members who see climate engagement as compatible with conservative principles. Climate change would still be a scientific and economic challenge, but politics would no longer preclude addressing it.
Rather than increasingly evident climate change adding to political division, it could drive both parties to act. America’s biggest policy achievements have generally occurred when a president elevated an issue as a national priority and Congress responded. Tax reform, welfare reform, civil rights, and other major agreements all required presidential leadership before they produced durable bipartisan legislation.
Climate policy has not yet reached that level. While voters increasingly care about it, it does not determine presidential elections or dominate governing agendas.
The closest climate change has come to being a top-tier issue was when President George H.W. Bush signed the United Nations Framework Convention on Climate Change in 1992, but that was before addressing climate change became so partisan. More recently, President Joe Biden included clean energy tax credits in the Inflation Reduction Act. That modest success is noteworthy in part because it rode upon legislation to address inflation, a top-tier voter issue — and because the provisions were largely repealed less than three years later. Until climate change becomes a presidential-level issue — one that candidates in both parties believe they must address — Congress is unlikely to devote sustained attention to it.
That day will come. And when that moment arrives, the quality of the legislation will depend on the work being done now. If we want bipartisan climate policy tomorrow, we need to build bipartisan political capacity today.
The climate movement has spent decades rewarding allies. The next several decades should be spent adding more. Politics follows incentives more than information. If we want Republicans to lead on addressing climate change or at least become those allies, we must stop just trying to persuade them and start investing in the institutions, incentives, and people that make it possible.