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Politics

The Greens Go to Court

On congestion pricing, carbon capture progress, and Tim Kaine.

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The Greens Go to Court
Heatmap Illustration/Getty Images

Current conditions: New Orleans is experiencing another arctic blast, with wind chills near 20 degrees Fahrenheit on Thursday • Continued warm, dry conditions in India threaten the country’s wheat crop • Heavy rain in Botswana has caused widespread flooding.

THE TOP FIVE

1. Big Greens’ first lawsuit of Trump 2.0

Environmental groups filed their first lawsuit against the Trump administration on Wednesday, challenging Trump’s moves to open up public lands and waters to oil and gas drilling. Sierra Club, Greenpeace, the Natural Resources Defense Council, the Center for Biological Diversity, and Oceana, among others, are contesting the president’s executive order revoking Joe Biden’s protections of parts of the Gulf of Mexico and the Arctic, Pacific, and Atlantic Oceans from oil and gas leasing. The groups claim that the president has the authority to create these protections but not to withdraw them — a right reserved for Congress — and notes that a federal court confirmed this after Trump attempted to undo similar Obama-era protections during his first term.

2. Trump declares checkmate on congestion pricing

President Trump made his move to kill New York City’s congestion pricing program on Wednesday. In a letter to Governor Kathy Hochul, Department of Transportation Secretary Sean Duffy said he was reversing the Department of Transportation’s approval of the scheme, citing the impacts on drivers and claiming the program violated federal statute. Trump declared it “DEAD” in a Truth Social post, where he also proclaimed that New York had been “SAVED” and closed with “LONG LIVE THE KING.” The Metropolitan Transit Authority, which runs the program and relies on funding from it, immediately challenged the decision in a federal court and said it would continue to operate the program “unless and until a court orders otherwise.”

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3. The climate and clean energy ups and downs of 2024

A sweeping annual report from BloombergNEF and the Business Council for Sustainable Energy has a number of hopeful and concerning stats about what happened in America’s energy transition last year.

The Good:

  • Solar and energy storage deployments continued to break records
  • Corporate procurements of clean power nearly doubled, with 183 deals signed, including new investments in nuclear plants
  • EV sales grew by 6.5% year on year, and legacy automakers finally started to show up for the party

Chart of new clean energy buildouts.Chart courtesy of the Business Council on Sustainable Energy

The Bad:

  • Emissions ticked up slightly, by 0.5%, with industrial emissions accounting for most of that growth due to rising natural gas use
  • Demand for natural gas reached a record high of 99.7 billion cubic feet per day, which includes LNG exports, and investment in natural gas infrastructure increased from $32 billion in 2023 to $49 billion
  • Onshore wind power additions declined for the fourth consecutive year

4. Hydrogen and carbon capture lagging

The same BNEF report also paints a lackluster picture of clean hydrogen and carbon capture development, two technologies that should benefit from generous federal subsidies. The U.S. had just 79 megawatts of “green” hydrogen production capacity by the end of 2024, with plans to build 34.7 gigawatts in the coming years.

The hydrogen industry was in limbo last year as it awaited final rules for claiming the production tax credit. Green hydrogen is made from carbon-free electricity and water. But most hydrogen announcements in 2024 — some 77% — were for “blue” hydrogen, which is made from natural gas using carbon capture. And while there’s a growing pipeline of carbon capture projects, with plans to deploy the tech in new sectors like ammonia and chemical production, U.S. carbon capture capacity has remained unchanged since 2020.

5. Kaine and Heinrich go after Trump’s “energy emergency”

In a press conference on Wednesday, Senators Tim Kaine of Virginia and Martin Heinrich of New Mexico detailed their plan to invalidate President Trump’s declaration of an energy emergency. In early February, the two introduced what’s called a “privileged joint resolution” to terminate the emergency declaration, a type of legislation that the Senate is required to vote on. “We’re going to force a vote, force everybody to declare where they are on this sham emergency declaration,” Kaine said. Kaine and Heinrich made the case that the U.S. produced more oil and gas last year than at any point in history, and discussed the many domestic manufacturing projects and jobs that President Trump’s war on clean energy has put under threat. The vote is expected next week.

THE KICKER

Sweden’s Supreme Court threw out a class action lawsuit brought by Greta Thunberg and other activists against the nation for not doing enough to stop climate change.

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Q&A

How to Channel Voters’ Anxieties About Data Centers

A conversation with the Guardrails Alliance’s Shaunna Thomas.

The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.

After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.

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Hotspots

Consider the Lobstermen Affected by New York’s Empire Wind

Plus more of the week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.

  • In late October, a family of lobstermen sued Equinor in federal court claiming the company’s compensatory mitigation program is failing to adequately make up for alleged negative impacts to lobster fishing grounds in the New York Bight. According to the lawsuit, the wind project irreparably hurt fishing in previously trafficked waters. The suit also claims that Empire Wind construction destroyed lobster fishing pots and seeks at least $75,000 in damages as well as punitive damages and attorneys’ fees.
  • The lawsuit is the first I have seen involving someone in aquaculture suing for damages over negative impacts of an already-constructed wind project, and it carries outsized implications as the Trump administration remands without vacatur the construction and operations plans for other offshore wind farms. This case is far from being decided, but that doesn’t matter: It is precisely the kind of complaint that Trump officials are likely to consider as they mull revisions to operational plans.
  • An Equinor spokesman declined to comment on the case, telling me they don’t speak on pending litigation.

2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.

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Spotlight

Data Center Developers Can’t Pay People Enough to Accept Them

Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.

Donald Trump and data center protesters.
Heatmap Illustration/Getty Images

This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.

Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.

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