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On the president’s environmental legacy, NYC congestion pricing, and winter weather
Current conditions: Extreme heat in southeastern Australia triggered fire bans • More than 260 flood alerts are in place across England and Wales • A snow emergency is in effect in Washington, D.C., where lawmakers are set to gather today to certify President-elect Donald Trump’s 2024 victory.
More than 60 million people across 30 states are under weather warnings as a winter storm bears down. At least seven states have declared emergencies: Kansas, Missouri, Kentucky, Virginia, West Virginia, Arkansas, and New Jersey. One of the hardest-hit cities is Kansas City, Missouri, which got about a foot of snow. The system – dubbed Winter Storm Blair by the Weather Channel – is moving east now and will bring six to 12 inches of snow, as well as icy conditions, to the mid-Atlantic. The National Weather Service warned that “travelers should anticipate significant disruptions.” After this storm passes, temperatures will continue to plunge well below normal throughout much of the nation. “Should the cold wave evolve to its full potential, maximum temperature departures could plunge 30-40 degrees Fahrenheit below the historical average from the northern Plains and Midwest to the interior Southeast through the first two weeks of January,” said AccuWeather meteorologist Alex Duffus. The forecast prompted Jim Robb, the CEO of the North American Electric Reliability Corp., to put out a warning via YouTube about the potential for power outages. Robb urged everyone within the power system to prepare for the worst. “The actions you take now may very well help us avoid the consequences of events such as we saw in Texas in 2021 and in the mid-Atlantic in 2022,” he said. As of this morning, about 300,000 customers were without power across Missouri, Illinois, Indiana, Kentucky, Virginia, and West Virginia.
The White House today announced that President Biden will move to permanently ban new offshore oil and gas drilling across huge swathes of U.S. coastal waters. “Biden has determined that the environmental and economic risks and harms that would result from drilling in these areas outweigh their limited fossil fuel resource potential,” the administration said. The 625 million acres included in the protections will cover the entire East Coast, the eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, as well as parts of the Northern Bering Sea in Alaska. As Politiconoted, most of those areas are of little interest to the oil and gas industry, but “the eastern part of the Gulf of Mexico is believed to hold large untapped reservoirs of oil.” It will be difficult for the incoming Trump administration to dismantle Biden’s ban, but the fossil fuel industry is likely to challenge it. With this decision, Biden will have conserved more lands and waters than any other U.S. president, the White House added. “President Biden has been a steadfast champion for climate progress from Day One of his administration,” Margie Alt, director of the Climate Action Campaign, said in a statement. “His legacy of conservation and advocacy to protect our climate will leave an indelible mark on the health of our communities and our environment.”
The first congestion pricing scheme in the U.S. officially came into effect on Sunday. Drivers entering lower Manhattan during peak hours will now have to pay $9, which is down from the $15 fee originally proposed. Gov. Kathy Hochul paused the ambitious plan last summer, then hastily reinstated it at the lower rate before the incoming Trump administration could do anything to block it. The program aims to reduce traffic and pollution in New York City, with the Metropolitan Transportation Authority estimating it will cut traffic by 10% and raise money to pay for infrastructure upgrades. Its success – or failure – could help inform other cities that might consider similar moves. A “congestion pricing tracker” is monitoring the new scheme’s effect on commutes in real-time. Here’s a snapshot of the data from the Holland Tunnel yesterday, where commute times seem to have been cut down to about 10 minutes from 30 minutes:
After being re-elected as House speaker on Friday, Mike Johnson made it clear that energy policy would be a top priority for the new Congress. “We have to stop the attacks on liquefied natural gas, pass legislation to eliminate the Green New Deal,” Johnson said. “We’re going to expedite new drilling permits, we’re going to save the jobs of our auto manufacturers, and we’re going to do that by ending the ridiculous EV mandates.” Of course, there is no actual “Green New Deal” to eliminate, nor any EV mandates to end. Those minor details aside, Johnson’s message signalled that the fight over President Biden’s landmark climate and energy policies has only just begun. “It is our duty to restore America’s energy dominance,” Johnson said, “and that’s what we’ll do.”
In case you missed it: The Fish and Wildlife Service on Friday finalized a decision to expand the boundaries of a Georgia wildlife refuge by 22,000 acres. The new boundaries for the Okefenokee National Wildlife Refuge, the largest blackwater swamp in North America, will include some lands that mining company Twin Pines Minerals had hoped to use to mine titanium dioxide. Environmental groups (and the Biden administration) opposed the mine; Interior Secretary Deb Haaland said it “poses an unacceptable risk to the long-term hydrology” of the swamp. In its statement, the FWS called the expansion “minor,” but said it would help “strengthen protection of the hydrological integrity of the swamp, provide habitat for the gopher tortoise, mitigate impacts of wildfires, and provide opportunities for longleaf pine restoration to benefit the red-cockaded woodpecker.”
Thirteen of the world’s busiest oil ports could be badly damaged by rising sea levels as soon as 2070, according to recent scientific analysis.
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On the budget debate, MethaneSAT’s untimely demise, and Nvidia
Current conditions: The northwestern U.S. faces “above average significant wildfire potential” for July • A month’s worth of rain fell over just 12 hours in China’s Hubei province, forcing evacuations • The top floor of the Eiffel Tower is closed today due to extreme heat.
The Senate finally passed its version of Trump’s One Big Beautiful Bill Act Tuesday morning, sending the tax package back to the House in hopes of delivering it to Trump by the July 4 holiday. The excise tax on renewables that had been stuffed into the bill over the weekend was removed after Senator Lisa Murkowski of Alaska struck a deal with the Senate leadership designed to secure her vote. In her piece examining exactly what’s in the bill, Heatmap’s Emily Pontecorvo explains that even without the excise tax, the bill would “gum up the works for clean energy projects across the spectrum due to new phase-out schedules for tax credits and fast-approaching deadlines to meet complex foreign sourcing rules.” Debate on the legislation begins on the House floor today. House Speaker Mike Johnson has said he doesn’t like the legislation, and a handful of other Republicans have already signaled they won’t vote for it.
The Environmental Protection Agency this week sent the White House a proposal that is expected to severely weaken the federal government’s ability to rein in planet-warming pollution. Details of the proposal, titled “Greenhouse Gas Endangerment Finding and Motor Vehicle Reconsideration,” aren’t clear yet, but EPA Administrator Lee Zeldin has reportedly been urging the Trump administration to repeal the 2009 “endangerment finding,” which explicitly identified greenhouse gases as a public health threat and gave the EPA the authority to regulate them. Striking down that finding would “free EPA from the legal obligation to regulate climate pollution from most sources, including power plants, cars and trucks, and virtually any other source,” wrote Alex Guillén at Politico. The title of the proposal suggests it aims to roll back EPA tailpipe emissions standards, as well.
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So long, MethaneSAT, we hardly knew ye. The Environmental Defense Fund said Tuesday that it had lost contact with its $88 million methane-detecting satellite, and that the spacecraft was “likely not recoverable.” The team is still trying to figure out exactly what happened. MethaneSAT launched into orbit last March and was collecting data about methane pollution from global fossil fuel infrastructure. “Thanks to MethaneSAT, we have gained critical insight about the distribution and volume of methane being released from oil and gas production areas,” EDF said. “We have also developed an unprecedented capability to interpret the measurements from space and translate them into volumes of methane released. This capacity will be valuable to other missions.“ The good news is that MethaneSAT was far from the only methane-tracking satellite in orbit.
Nvidia is backing a D.C.-based startup called Emerald AI that “enables AI data centers to flexibly adjust their power consumption from the electricity grid on demand.” Its goal is to make the grid more reliable while still meeting the growing energy demands of AI computing. The startup emerged from stealth this week with a $24.5 million seed round led by Radical Ventures and including funding from Nvidia. Emerald AI’s platform “acts as a smart mediator between the grid and a data center,” Nvidia explains. A field test of the software during a grid stress event in Phoenix, Arizona, demonstrated a 25% reduction in the energy consumption of AI workloads over three hours. “Renewable energy, which is intermittent and variable, is easier to add to a grid if that grid has lots of shock absorbers that can shift with changes in power supply,” said Ayse Coskun, Emerald AI’s chief scientist and a professor at Boston University. “Data centers can become some of those shock absorbers.”
In case you missed it: California Governor Gavin Newsom on Monday rolled back the state’s landmark Environmental Quality Act. The law, which had been in place since 1970, required environmental reviews for construction projects and had become a target for those looking to alleviate the state’s housing crisis. The change “means most urban developers will no longer have to study, predict, and mitigate the ways that new housing might affect local traffic, air pollution, flora and fauna, noise levels, groundwater quality, and objects of historic or archeological significance,” explainedCal Matters. On the other hand, it could also mean that much-needed housing projects get approved more quickly.
Tesla is expected to report its Q2 deliveries today, and analysts are projecting a year-over-year drop somewhere from 11% to 13%.
Jesse teaches Rob the basics of energy, power, and what it all has to do with the grid.
What is the difference between energy and power? How does the power grid work? And what’s the difference between a megawatt and a megawatt-hour?
On this week’s episode, we answer those questions and many, many more. This is the start of a new series: Shift Key Summer School. It’s a series of introductory “lecture conversations” meant to cover the basics of energy and the power grid for listeners of every experience level and background. In less than an hour, we try to get you up to speed on how to think about energy, power, horsepower, volts, amps, and what uses (approximately) 1 watt-hour, 1 kilowatt-hour, 1 megawatt-hour, and 1 gigawatt-hour.
Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, YouTube, or wherever you get your podcasts.
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Here is an excerpt from our conversation:
Jesse Jenkins: Let’s start with the joule. The joule is the SI unit for both work and energy. And the basic definition of energy is the ability to do work — not work in a job, but like work in the physics sense, meaning we are moving or displacing an object around. So a joule is defined as 1 newton-meter, among other things. It has an electrical equivalent, too. A newton is a unit of force, and force is accelerating a mass, from basic physics, over some distance in this case. So 1 meter of distance.
So we can break that down further, right? And we can describe the newton as 1 kilogram accelerated at 1 meter per second, squared. And then the work part is over a distance of one meter. So that kind of gives us a sense of something you feel. A kilogram, right, that’s 2.2 pounds. I don’t know, it’s like … I’m trying to think of something in my life that weighs a kilogram. Rob, can you think of something? A couple pounds of food, I guess. A liter of water weighs a kilogram by definition, as well. So if you’ve got like a liter bottle of soda, there’s your kilogram.
Then I want to move it over a meter. So I have a distance I’m displacing it. And then the question is, how fast do I want to do that? How quickly do I want to accelerate that movement? And that’s the acceleration part. And so from there, you kind of get a physical sense of this. If something requires more energy, if I’m moving more mass around, or if I’m moving that mass over a longer distance — 1 meter versus 100 meters versus a kilometer, right? — or if I want to accelerate that mass faster over that distance, so zero to 60 in three seconds versus zero to 60 in 10 seconds in your car, that’s going to take more energy.
Robinson Meyer: I am looking up what weighs … Oh, here we go: A 13-inch MacBook Air weighs about, a little more than a kilogram.
Jenkins: So your laptop. If you want to throw your laptop over a meter, accelerating at a pace of 1 meter per second, squared …
Meyer: That’s about a joule.
Jenkins: … that’s about a joule.
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Music for Shift Key is by Adam Kromelow.
If the Senate reconciliation bill gets enacted as written, you’ve got about 92 days left to seal the deal.
If you were thinking about buying or leasing an electric vehicle at some point, you should probably get on it like, right now. Because while it is not guaranteed that the House will approve the budget reconciliation bill that cleared the Senate Tuesday, it is highly likely. Assuming the bill as it’s currently written becomes law, EV tax credits will be gone as of October 1.
The Senate bill guts the subsidies for consumer purchases of electric vehicles, a longstanding goal of the Trump administration. Specifically, it would scrap the 30D tax credit by September 30 of this year, a harsher cut-off than the version of the bill that passed the House, which would have axed the credit by the end of 2025 except for automakers that had sold fewer than 200,000 electric vehicles. The credit as it exists now is worth up to $7,500 for cars with an MSRP below $55,000 (and trucks and sports utility vehicles under $80,000), and, under the Inflation Reduction Act, would have lasted through the end of 2032. The Senate bill also axes the $4,000 used EV tax credit at the end of September.
“Long story short, the credits under the current legislation are only going to be on the books through the end of September,” Corey Cantor, the research director of the Zero Emission Transportation Association, told me. “Now is definitely a good time, if you’re interested in an EV, to look at the market.”
The Senate applied the same strict timeline to credits for clean commercial vehicles, both new and used. For home EV chargers, the tax credit will now expire at the end of June next year.
While EVs were on the road well before the 2022 passage of the Inflation Reduction Act, what the new tax credit did was help build out a truly domestic electric vehicle market, Cantor said. “You have a bunch of refreshed EV models from major automakers,” Cantor told me, including “more affordable models in different segments, and many of them qualify for the credit.”
These include cars produceddomestically by Kia,Hyundai, and Chevrolet. But of course, the biggest winner from the credit is Tesla, whose Model Y was the best-selling car in the world in 2023.
Tesla shares were down over 5.5% in Tuesday afternoon trading, though not just because of Congress. JPMorgan also released an analyst report Monday arguing that the decline in sales seen in the first quarter would accelerate in the second quarter. President Trump, with whom Tesla CEO Elon Musk had an extremely public falling out last month, suggested on social media Monday night that the government efficiency department Musk himself formerly led should “take a good, hard, look” at the subsidies Musk receives across his many businesses. Trump also said that he would “take a look” at Musk’s United States citizenship in response to reporters’ questions about it.
Cantor told me that he expects a surge of consumer attention to the EV market if the bill passes in its current form. “You’ve seen more customers pull their purchase ahead” when subsidies cut-offs are imminent, he said.
But overall, the end of the subsidy is likely to reduce EV sales from their previously expected levels.
Harvard researchers have estimated that the termination of the EV tax credit “would cut the EV share of new vehicle sales in 2030 by 6.0 percentage points,” from 48% of new sales by 2030 to 42%. Combined with other Trump initiatives such as terminating the National Electric Vehicle Infrastructure program for publicly funded chargers (currently being litigated) and eliminating California’s waiver under the Clean Air Act that allowed it to set tighter vehicle emissions standards, the share of new car sales that are electric could fall to 32% in 2030.
But not all government support for electric vehicles will end by October 1, even if the bill gets the president’s signature in its current form.
“It’s important for consumers to know there are many states that offer subsidies, such as New York, and Colorado,” Cantor told me. That also goes for California, New Jersey, Nevada, and New Mexico. You can find the full list here.
Editor’s note: This story has been edited to include a higher cost limit for trucks and SUVs.