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A desire to please the Court may have rendered the EPA’s new power plant rule a little too ineffectual.

If nothing else, give the Environmental Protection Agency credit for this: They seem to understand the assignment.
Last year, the Supreme Court struck down the Clean Power Plan, President Barack Obama’s ambitious attempt to restrict carbon pollution from power plants. That proposal never carried the force of law, and it had been held in suspended animation by the Court — and later the Trump administration — since 2016. But after President Joe Biden took office, Chief Justice John Roberts and the Court’s conservative majority revived it seemingly entirely for the sake of deeming it illegal.
The proposal went far beyond what was allowed by Congress, Roberts ruled. Normally, an EPA standard would require that power plants or factories install some kind of equipment on their smoke stacks to meet a pollution cap. “By contrast, and by design,” the Obama proposal could only be satisfied by burning less coal, the chief justice wrote. It required “generation shifting,” forcing states to get more of their power from renewable, nuclear, or natural-gas plants.
That overreached the EPA’s authority under the Clean Air Act, Roberts declared. If the EPA wanted to regulate greenhouse gases, then it needed to treat them like a normal air pollutant — and it needed to act like a normal technocratic agency. Above all, it had to keep its regulations to those that could be accomplished “inside the fenceline” of each power plant.
So last week, when the Biden administration finally unveiled its own draft attempt at regulating carbon pollution from power plants, it knew it was playing on the Court’s, well, court. And it behaved accordingly. The best thing you can say about the EPA’s new power-plant proposal — which will be one of the Biden era’s most important climate regulations — is that it was meticulously, painstakingly tailored to the Court’s demands. If Chief Justice Roberts asked for a normal rule, then the EPA has delivered one so awkwardly, self-consciously normal that it seems a little like a narc. The worst thing about the new rule is that this desire to please the Court may have rendered the rule a little too ineffectual.
If America wants to fight climate change, it must clean up its power plants. Generating abundant, cheap, zero-carbon electricity is the key to the country’s decarbonization strategy.
“If you clean up the power sector, it enables you to clean up other sectors of the economy too, through electrification,” Leah Stokes, an environmental-science professor at the University of California, Santa Barbara, told me. “Electric cars, heat pumps, induction stoves — all these machines can be fueled with clean power.”
Biden’s climate law, the Inflation Reduction Act, will slash emissions from the sector over the next decade, according to federal and independent modeling efforts. But it won’t get the sector all the way there. That’s where the new proposal is supposed to step in.
As per the Supreme Court’s request, the proposal details how every kind of power plant — even those that burn coal or natural gas — can meet their climate requirements for decades to come. It mandates a buildout of carbon capture and storage infrastructure, or CCS, for most coal and some natural-gas plants that plan to stay open long-term.
“The EPA rule makes sure everyone is on the same level-playing field. If the Inflation Reduction Act is enough to incentivize CCS in some places, the EPA is gonna make sure everyone is gonna do it,” Nick Bryner, a law professor at Louisiana State University, told me. “I think it’s designed very, very well to work in tandem with the IRA tax credits.”
If the IRA is the regulatory-friendly angel on its shoulder, then the Supreme Court’s decision last year — called West Virginia v. EPA — is the devil. The EPA’s desire to stay on the Court’s good side is even visible in the proposal’s name. Previous administrations have tried to give their power-plant rules a memorable name — Obama had the Clean Power Plan, of course, and the Trump administration christened its effort the “Affordable Clean Energy Rule,” or ACE. The Biden administration, by comparison, named the new proposal:
New Source Performance Standards for Greenhouse Gas Emissions from New, Modified, and Reconstructed Fossil Fuel-Fired Electric Generating Units; Emission Guidelines for Greenhouse Gas Emissions from Existing Fossil Fuel-Fired Electric Generating Units; and Repeal of the Affordable Clean Energy Rule
That’s the NSPSGHGNMRFFFEGU; EGGGEEFFFGU; RACE Rule for short.
I would say that the agency couldn’t have given it a more technocratic name if it tried, except that it obviously tried very hard. “Traditional approach, traditional name,” the EPA’s press office chirped when the Politico reporter Alex Guillén first noted the name. Just what the Supreme Court asked for!, they all but added. The agency is so desperate to look obedient and demure that even its social-media team has been briefed on current federal doctrine.
At the same time, the rule does “a tremendous amount to make the rule as flexible as possible given the constraints they’re working with in West Virginia v. EPA,” Bryner said. Under the proposal, some natural-gas plants can choose between installing carbon-capture equipment or burning low-carbon hydrogen.
But the rules may have erred on the side of too much flexibility, says Charles Harper, a policy analyst at Evergreen, a climate advocacy group and think tank. Evergreen and other environmental groups are worried that the rules might be too generous to fossil fuel companies. They’re focusing their criticism on two elements of the draft: its handling of natural-gas plants and coal retirements.
First, the EPA rule as proposed would not apply to an overwhelming majority of the country’s natural-gas plants.
A large share of carbon emissions from natural-gas plants come from so-called “baseload” plants that generate many hundreds of megawatts of electricity at all hours of the day. The rule focuses on these facilities, and it requires them either to install CCS equipment or to burn hydrogen fuel.
But the rule is not nearly so strict about small or medium-sized natural-gas plants. Natural-gas plants that generate less than 300 megawatts of electricity — or that run less than half the time — are essentially exempt from the rule. This excludes 77% of the country’s natural-gas plants from the new EPA proposal, requiring them to make no changes through 2040.
It is unclear what share of carbon emissions these natural-gas plants represent. The EPA did not provide an estimate of their carbon emissions before the deadline for this story.
As a whole, natural-gas power plants emit 43% of the U.S. electricity sector’s carbon pollution, despite producing nearly twice as much power as coal.
Environmental groups say the proposal’s coal problem is simpler to fix. In the draft, the EPA puts coal-fired power plants in different categories depending on when they’re slated to retire. Plants that have no retirement date — or that will remain open after 2040 — must install equipment to capture 90% of their emissions by the year 2030. Plants shutting down after 2035 must make a cheaper set of changes. And plants due to close by 2032 don’t have to make any changes at all, so long as they don’t increase their emissions over the next decade.
Those deadlines are too long from now, and the EPA should bring them forward in time when it issues a final version of the rule, Harper said. “2040 is pretty far out and would entail a lot of unabated emissions hitting the climate and human health,” he told me.
The EPA still has time to edit this proposal; it will hear public comment over the next few months and probably issue a final version of the rule next year. With the procedural issues resolved, the Supreme Court’s ability to object to that rule is limited to whether carbon capture is feasible and affordable enough to be used under the Clean Air Act.
If there is a bright spot for climate advocates in the new rule, it’s that the Biden administration — and last year’s Democratic majority in Congress — seem to have anticipated that move.
As the House was voting on the IRA last year, Representative Frank Pallone, the chair of the House Energy and Commerce Committee, put a statement in the congressional record saying that the EPA should take the IRA’s generous tax credits into account when proposing power-plant rules. The subsidies should be considered when the agency is deciding whether CCS is feasible and affordable, he said. The EPA cites Pallone’s statement in its new draft.
But ultimately it is Chief Justice John Roberts who will get to decide. Almost a decade ago, a set of conservative states sued the EPA to block it from requiring CCS. That issue has since been held in its own state of suspended animation. It may soon breathe again.
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This is what we’re tracking in energy and climate over the next four months — and beyond.
This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.
We’re in the last third of 2026. In yesterday’s newsletter, I looked at the biggest planned upcoming events in climate and energy policy that we’re tracking at Heatmap for the rest of this year.
Today, I want to look at some of the biggest questions that I’m pondering for the rest of the year.
What will the AI backlash mean for data centers and energy demand?
In just the past 24 hours, existential concerns about artificial intelligence has gone mainstream. Even though AI engineers have warned that the technology could trigger some kind of mass fatality event — or even human extinction — for years, the resignation of Sam Coxon from Anthropic seems to have broken through into a new tier of public awareness. “We really do earnestly believe AI could kill all humans! I personally think it is >10% within the next decade,” Evan Hubinger, an Anthropic employee, posted on X after Coxon’s resignation broke.
It’s unscientific, but I’ve seen more celebrity Instagram posts, vertical videos, and concerned messages from friends about AI doom in the past day than I have in weeks. Senator Bernie Sanders is now holding a bipartisan meeting next week to discuss the “extraordinary dangers” posed by AI, according to Axios.
We already know that the public detests AI data centers. But so far the data center story has been somewhat severable from the AI story — voters, politicians, and journalists could talk about the AI infrastructure buildout separately from the tales of, say, AI allegedly solving century-old math problems. Will that remain the case? Or will the two stories merge? If that happens, will politicians and AI safety experts start to encourage (or even empower) the data center backlash because it might slow down AI’s overall development? What will that mean for the politics of infrastructure, electrification, and load growth — and will it cut greenhouse gas emissions?
What will happen in Iran, how high can oil go, and what will it mean for the energy system?
President Donald Trump has never been “looking for long term” in Iran, yet his war continues to drag on without an obvious or easy resolution. It has dragged energy prices up with it.
The global crude benchmark has now edged above $100. Gasoline costs more than $4.20 a gallon on average in the United States (and far more in Europe), and diesel is even more expensive. According to an ongoing estimate from Brown University researchers, the war has now cost Americans more than $100 billion due to energy inflation since it began. Hostilities have seemed to intensify in the past few days; Iran fired missiles at U.S. Navy ships and the United States responded by destroying oil tankers.
This has been generally bad for European economies, which are to some degree still recovering from the triple shock of Covid, energy inflation from Russia’s invasion of Ukraine, and China’s ongoing export boom. At the same time, the Iran war has broadly vindicated China’s energy strategy, which has used electrified technology, strategic stockpiling, and a coal, solar, and battery-dependent power grid to reduce economic dependence on seaborne liquid fuels. (China’s greenhouse gas emissions actually fell in the second quarter because of a drop in the country’s oil consumption.)
The most urgent question here, of course, is whether President Trump will find a way to end the war that he began earlier this year — and how expensive oil and liquified natural gas will get in the interim.
But an end to the war will trigger another set of questions about what this energy shock will mean for energy, climate, and industrial policy going forward. Shocks like these tend to dominate national strategy for years or decades after they happen; Thailand’s government announced last month that it’s backing off LNG imports in favor of renewables. Will we start to see a wider set of countries do the same? Will more countries build strategic oil stockpiles, driving up oil demand in the short term? And will more middle- and low-income countries embrace Chinese-made electric cars in the name of boosting energy security and cutting their oil dependence?
Will the U.S. get bipartisan permitting reform?
The most important political question this year — if you are a normal person — is whether Democrats will take over the House of Representatives and even the Senate in the upcoming midterm election. But we aren’t normal people here at Heatmap. And the midterm elections will, for us, only commence the year’s most interesting political moment.
Right now, lawmakers from both parties say they are trying to reach a deal on bipartisan permitting reform. Such a bill would make it easier to build transmission lines, renewable energy, and some fossil fuel infrastructure, as well as presumably restraining the president’s extralegal war on solar and wind. It could even make it easier for the government to build public infrastructure of all sorts.
We haven’t seen the text of such a deal yet — although my Shift Key interview with Daniel Palken, a permitting expert at Arnold Ventures, offers a lot of clues to its potential content. So it remains an open question whether lawmakers can reach a deal in November and shepherd it through a lame-duck Congress before the end of the year.
If they can, it could enable a future president to conduct a faster and more aggressive clean energy or infrastructure buildout than was previously imaginable. If they can’t, then it will be hard to imagine when such a deal might ever come together, as it has failed to congeal under almost every partisan combination of a president and Congress.
Will 2026 be the hottest year ever?
Back in the spring, climate scientists assigned low odds to the probability that 2026 would become the hottest year ever measured. Since then, though, a monstrous El Niño has clawed out of the Pacific Ocean, nudging up global temperatures and contributing to America’s record-breaking summer.
2026 now has a greater than 33% chance of eclipsing 2024’s hottest-year-on-record title, according to a late July estimate from Carbon Brief; the odds have probably risen further since then. Either way, 2026 will probably come in about 1.5 degrees Celsius warmer than the pre-industrial average — and 2027 is very likely to be even hotter.
Are we entering a post-Trump, post-2010s energy and climate era — and what will it look like?
President Donald Trump is about as unpopular as he has ever been, and on a range of issues, he seems to be losing touch with the American public. Simply by dint of being the country’s most prominent political figure for most of the past 10 years, he has become an establishment politician. He now champions AI, data centers, and the Iran War, for instance, while Americans seem skeptical of all three (at best).
In the next several months, these trends are all likely to intensify: Trump is likely to lose control of Congress — at least according to the polls and the betting markets — and a new presidential election will begin, one in which he will probably not be running.
Which isn’t to say that Trump will lose his grip on the Republican Party or its voters — nor that his actions in the coming years will be lawful, or even Constitutional. But nevertheless if you squint, you can begin to imagine what a post-Trump political era might look like, and it is quite different from the epoch that we have just lived through. It is an era where voters will likely be more worried about inflation and the cost of living than unemployment and economic growth. It is an era where Democrats will be looking to play up economic populism and where the federal deficit might matter again. It is an era where Millennials will be in their prime earning years, where politicians will fear a backlash to industrial policy and infrastructure buildout, and where America’s role in the world will remain unsettled.
It is, in short, not at all like the era that gave us the Green New Deal or the other energy and climate policy of the early 2020s; even if a recession hits and employment becomes a major concern once again, then the resulting political environment might look more like 1992 (or even 1937) than 2008. We are, in short, entering a new era — one we’re excited to watch, develop, and cover here at Heatmap.
Current conditions: Hurricane Lowell came within 40 miles of making landfall over Hawaii, knocking out power in much of Kaua’i • The Atlantic hurricane season, which hit its climatological peak this week, is now trending toward a record low amount of storm activity • After months of heat, an unusual cold front is arriving in Central Europe, threatening flooding from the temperature whiplash.

Back in 1986, the writer Marc Reisner painted a bleak picture of the future of the reservoirs that helped fulfill America’s Manifest Destiny, spread Anglo civilization westward, and quench the thirst of farms, people, and their lawns. His classic Cadillac Desert: The American West and Its Disappearing Water predicted that the hydrological system would be thrown into disarray as sediment filled in reservoirs, leaving croplands parched and water scarce. A startling new Bloomberg analysis of scant federal reservoir data suggests that future is fast approaching. Compiling 140 sediment surveys from the Bureau of Reclamation of 105 unique dams, the newswire found that nearly one in three are more than 10% full of sediment. That’s only an average. Montana’s Fresno Reservoir is roughly 29% full of sediment, “displacing enough water to last nearly one-third of the state’s residents for a year.” Wyoming’s Buffalo Bill Dam, meanwhile, “has lost most of its hydroelectric generating capacity due to sediment.” An engineer who oversaw sediment work at the Bureau of Reclamation estimated that the U.S. has already lost up to 44% of its per capita water storage since a peak in the 1970s. “People back in the ’60s and ’70s figured, ‘Well, the next generation can figure that out,’” Randle told the publication. “But now, fast-forward to the present, there aren’t any great solutions.”
The finding comes just months after the Western U.S. suffered what my colleague Jeva Lange called “a once-in-a-4,433-year heat wave” with consequences that “will linger well past the high temperatures.”
In 2020, when activists sought to block individual gas or oil pipelines as a way to spur decarbonization, then-New York Governor Andrew Cuomo bowed to months of protests by blocking the state’s approval of water permits for a major gas pipeline under New York Bay. The project, known as the Northeast Supply Enhancement pipeline, would have carried gas from the fracking fields of Pennsylvania to the nation’s most densely populated and increasingly energy-starved region. In the meantime, demand for gas has soared, particularly as New York and Massachusetts shut down major nuclear stations and the offshore wind buildout began stalling even before President Donald Trump launched what my colleagues have repeatedly described as a “war” on turbines. When Trump returned to office, now-New York Governor Kathy Hochul compromised with the new administration by agreeing to work together to move forward with the mothballed pipeline plans. Last November, New Jersey followed suit by approving the water permits for the project on the same day New York did. Williams broke ground in April.
But bipartisan consensus is no guarantee against this nation’s process rules for environmental permitting. On Tuesday, the Third Circuit Court of Appeals rejected the New Jersey Department of Environmental Protection’s water certifications. Prior to the decision last year, New Jersey’s state agency held only one public hearing, prompting a lawsuit from a coalition of green groups. NJ Sierra Club, one of the leading litigants, hailed Tuesday’s ruling as “a massive victory over the fossil fuel industry.” The decision “tells us what we already knew, the DEP couldn’t prove that NESE will not harm our water quality and waterways,” Anjuli Ramos-Busot, NJ Sierra Club’s director, said in a statement. When I emailed Williams to ask about the ruling last night, spokesperson Cherice Corley told me the company was “reviewing the court’s decision.”
It’s a big week for carbon capture and sequestration in Europe. On Monday, the continent’s largest CCS facility officially opened at the fertilizer company Yara International’s Sluiskil plant in the Netherlands. At full capacity, the facility will capture and liquify up to 800,000 tons of carbon dioxide annual from an ammonia production plant. Yara said the facility “proves that large-scale industrial decarbonization is possible today.” The European Union’s climate commissioner, Wopke Hoekstra, said “this is exactly the kind of project Europe needs to combine climate ambition with a strong and resilient industrial base.”
That same day, the British startup Cool Planet Technologies christened its 10,000-ton-per-year CCS plant at building material maker Holcim’s cement plant in Lower Saxony, Germany. “We are relying on leading European technology and drawing on the engineering expertise of our technology partners,” Holcim Germany CEO Stephan Hinrichs told the Carbon Herald. “Together in Lower Saxony, we are proving that climate protection and industrial competitiveness can go hand in hand.” Someone may want to tell the incoming far-right rulers of neighboring Saxony-Anhalt.
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If bipartisan consensus on gas infrastructure bows to environmental lawfare in blue states, bipartisan consensus on transmission lines seems equally vulnerable to not-in-my-backyard-ism in states of any color. But there’s at least some bipartisan consensus on doing something about that. On Tuesday, Representatives Scott Peters, a California Democrat, and Gabe Evans, a Colorado Republican, introduced the Certainty in Litigation for Electric Asset Reliability, or CLEAR Act, to “resolve ambiguity in current law so that Department of Energy-coordinated transmission projects follow clear standards.”
“Our grid is too old and too slow to meet our skyrocketing energy demand,” Peters said in a press release. “We can’t wait years for badly needed infrastructure to be built. The CLEAR Act would accelerate the review process for large energy infrastructure projects and establish clear rules for stalled transmission projects.” While permitting reform may bring down the cost of transmission lines, and bring more renewables and other new generation onto the grid, it won’t do much to deal with oil prices, now soaring again as the Iran War drags on. Brent crude — the main European and global metric for oil prices — surpassed $100 per barrel again yesterday. West Texas Intermediate, the benchmark for the U.S. supply, hovered just below $96.
The Department of the Interior is planning to “significantly reorganize” the National Park Service and other bureaus in the agency as part of what The Washington Sun called “the second major shake-up of the nation’s public lands infrastructure” since Trump’s return to office. While the leaked document the publication obtained suggested the agency would avoid layoffs “in the short term,” talking points told officials to “avoid categorical promises; explain notification process” if asked about job cuts.
“We want to reorganize. We want to make things more efficient. You know what? We can do all those things, but how is that actually helping us be a leader and setting an example of how we protect our nation’s natural and cultural resources?” Russell Galipeau, who served as superintendent of Channel Islands National Park for 15 years, told the publication.
The summer of 2023 marked Quebec’s worst wildfire season on record, burning some 4.5 million hectares of boreal forests and darkening the skies of cities such as New York with toxic smoke. A new study by Concordia University researchers is among the first to quantify how the smoke affected wildlife. The research looked at lepidoptera — moths and butterflies — and concluded that the smoke exposure during the larval stage caused significantly higher rates of wing deformities in spruce budworm and forest tent caterpillar moths. “These insects are important because they are considered pests, meaning they have outbreak seasons, where the population density becomes very high,” Rosa Alicia Castillo Salazar, the study’s co-author, said in a statement. “We do not yet know how forest fires and climate change will affect them in the long term. However, there was no significant change in their population the following year.”
Rob goes back to school with Princeton University’s Jesse Jenkins on the basics of energy and power.
As we catch up from summer vacation, we’re bringing you a favorite from the Shift Key archive. We’ll be back in your feed with more fresh episodes starting next week.
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 was the start of Shift Key Summer School, 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, Rob and former Shift Key co-host Jesse Jenkins, a professor of systems engineering at Princeton University, 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 Robinson Meyer, the founding executive editor of Heatmap News.
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 their conversation:
Robinson Meyer: I’m raising my hand.
Jesse Jenkins: Yeah, okay. Robinson has a question. Yes, Robinson.
Meyer: Okay, so I have a few questions. The first is, I think it is kind of important to establish, like, energy here — the joule — what that changes about a substance — and I realize this is high school physics, physics 101 — is the acceleration, not the velocity. We sometimes think of energy as a property of velocity, but it’s actually the ability to change velocity. That is what energy does.
Jenkins: Right. Yeah, that’s right. I think about the basic Newtonian mechanics, right? If you have an object in a vacuum with no friction, or no forces working against it, it will continue at the same velocity and the same trajectory forever. And so what it requires energy is to change that direction or velocity, which requires acceleration or the application of force to some mass.
Meyer: You just kind of said this, but what is the difference between energy and power?
Jenkins: So energy is the actual thing that ... it’s the quantity of the thing that’s doing work, right? So it’s the amount of fuel we burned, or the number of calories we had to eat to run our bodies over the course of a day, or the amount of electricity we had to generate to run our lights or our computer. Power is the rate at which that energy is consumed or supplied or transported or transformed. And so it is not itself a unit of quantity. You don’t use power. You use energy. Power is the rate at which you’re using energy.
You can find a full transcript of the episode here.
Mentioned:
This episode of Shift Key is sponsored by …
Verse’s software platform Aria helps data centers connect to the grid faster and optimize power operations in real time. Learn more at verse.inc.
RE+ 26 is the largest clean energy event in North America, happening November 16th through 19th at the Las Vegas Convention Center. Register at re-plus.com and use code SHIFTKEY20 to save 20% off a Full Conference pass.
Music for Shift Key is by Adam Kromelow.