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Politics

The EPA Wants that $20 Billion Back

On the Greenhouse Gas Reduction Fund, armored EVs, and China’s coal addiction

The EPA Wants that $20 Billion Back
Heatmap Illustration/Getty Images

Current conditions: An approaching rain storm prompted evacuation warnings for parts of Los Angeles recently affected by wildfires • A Category 5 tropical cyclone is heading for Western Australia • School has been suspended in Brazil’s state of Rio Grande do Sul due to an extreme heat wave. Less than a year ago, the region was under water.

THE TOP FIVE

1. EPA’s Zeldin wants to claw back $20 billion in climate grants

EPA Administrator Lee Zeldin says he plans to revoke $20 billion in grants awarded for Biden-era climate projects. In a video posted on X, Zeldin said the EPA would end its contract with the bank that oversees the Greenhouse Gas Reduction Fund, a $27 billion Inflation Reduction Act program for climate mitigation and adaptation initiatives. As Heatmap’s Emily Pontecorvo reported last year, the idea behind the fund was to “create a national clean financing network for clean energy and climate solutions.” The money has already been awarded to eight nonprofits, including the Coalition for Green Capital, Rewiring America, Habitat for Humanity, and Community Preservation Corporation. Zeldin seems intent on clawing the money back, accusing the Biden administration of rushing its distribution without oversight. “The financial agreement with the bank needs to be instantly terminated and the bank must immediately return all of the gold bars that the EPA toss off the Titanic,” he said. The move will likely draw legal challenges.

X/epaleezeldin

2. Trump nominates fossil fuel lobbyist to lead BLM

President Trump has nominated Kathleen Sgamma, an oil and gas lobbyist, to lead the Bureau of Land Management. The BLM oversees 245 million acres of public lands, or about one in every 10 acres across the country. It also manages 700 million acres of mineral estate. Sgamma leads a Colorado-based fossil fuel trade group called the Western Energy Alliance. As The Associated Press reported, she “has been a leading voice for the fossil fuel industry, calling for fewer drilling restrictions on public lands that produce about 10% of U.S. oil and gas.” Environmentalists slammed the nomination. “It’s hard to imagine how Trump could give a bigger middle finger to America’s public lands,” said Taylor McKinnon, Southwest director at the Center for Biological Diversity. “Everyone who treasures the outdoors should oppose her nomination.”

3. State Department planned to spend $400 million on Tesla vehicles

Public documents show that the State Department was planning to buy $400 million worth of armored Tesla vehicles, most likely Cybertrucks, Drop Site reported yesterday. The 2025 procurement forecast has since been updated to remove any mention of Tesla, and now references only “armored electric vehicles.” Tesla CEO Elon Musk has become a key advisor to President Trump, scrutinizing government spending as leader of the “Department of Government Efficiency.” His role has “raised recurring questions about how he might police himself when one of his companies competes for official contracts,” Bloomberg said. Musk posted on X that he was “pretty sure” his company wasn’t getting $400 million from the government. “No one mentioned it to me, at least.”

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  • 4. Report warns climate change threatens future of EU

    The German government put out a report yesterday that says climate change poses a looming existential threat to the European Union. By 2040, the climate crisis will “increasingly impact political, economic, and social dynamics within the EU,” the report said. More frequent extreme weather events will burden public health and trigger mass migration both into and within Europe, and also threaten crop production and tourism in countries heavily reliant on both sectors. “A lack of tourism and crop failures can lead to economic instability and have the potential to cause conflict within the EU,” the report said. “It is in Germany and the EU’s interest to slow climate change and accelerate decarbonisation, not only from an economic and ecological perspective but also from a security policy perspective.”

    National Interdisciplinary Climate Risk Assessment

    5. China ramps up construction of coal-fired power plants

    Construction on coal-fired power plants in China soared last year to the highest level since 2015, according to analysis from the Center for Research on Energy and Clean Air and the Global Energy Monitor. China is the world’s biggest emitter of greenhouse gases, but it has been applauded for its renewable energy expansion. Indeed, last year it added 356 gigawatts of wind and solar capacity. But China also started building lots of new coal power plants with electric-generating capacity totaling about 95 gigawatts. These plants will begin to come online in the next few years. “Instead of replacing coal, clean energy is being layered on top of an entrenched reliance on fossil fuels,” the report said. “The parallel expansion of coal and renewables risks undermining China’s clean energy transition.”

    THE KICKER

    “The companies and local governments that are now being strung along by the Trump administration did not make a vague handshake agreement with the Biden administration. Instead, they signed a contract with the federal government to receive a certain amount of money in exchange for doing a certain activity. The administration might have changed since then. But the government is still bound by its debts and obligations.”

    Heatmap’s Robinson Meyer on contract law and the Trump spending fight

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    Adaptation

    The ‘Buffer’ That Can Protect a Town from Wildfires

    Paradise, California, is snatching up high-risk properties to create a defensive perimeter and prevent the town from burning again.

    Homes as a wildfire buffer.
    Heatmap Illustration/Getty Images

    The 2018 Camp Fire was the deadliest wildfire in California’s history, wiping out 90% of the structures in the mountain town of Paradise and killing at least 85 people in a matter of hours. Investigations afterward found that Paradise’s town planners had ignored warnings of the fire risk to its residents and forgone common-sense preparations that would have saved lives. In the years since, the Camp Fire has consequently become a cautionary tale for similar communities in high-risk wildfire areas — places like Chinese Camp, a small historic landmark in the Sierra Nevada foothills that dramatically burned to the ground last week as part of the nearly 14,000-acre TCU September Lightning Complex.

    More recently, Paradise has also become a model for how a town can rebuild wisely after a wildfire. At least some of that is due to the work of Dan Efseaff, the director of the Paradise Recreation and Park District, who has launched a program to identify and acquire some of the highest-risk, hardest-to-access properties in the Camp Fire burn scar. Though he has a limited total operating budget of around $5.5 million and relies heavily on the charity of local property owners (he’s currently in the process of applying for a $15 million grant with a $5 million match for the program) Efseaff has nevertheless managed to build the beginning of a defensible buffer of managed parkland around Paradise that could potentially buy the town time in the case of a future wildfire.

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    Spotlight

    How the Tax Bill Is Empowering Anti-Renewables Activists

    A war of attrition is now turning in opponents’ favor.

    Massachusetts and solar panels.
    Heatmap Illustration/Library of Congress, Getty Images

    A solar developer’s defeat in Massachusetts last week reveals just how much stronger project opponents are on the battlefield after the de facto repeal of the Inflation Reduction Act.

    Last week, solar developer PureSky pulled five projects under development around the western Massachusetts town of Shutesbury. PureSky’s facilities had been in the works for years and would together represent what the developer has claimed would be one of the state’s largest solar projects thus far. In a statement, the company laid blame on “broader policy and regulatory headwinds,” including the state’s existing renewables incentives not keeping pace with rising costs and “federal policy updates,” which PureSky said were “making it harder to finance projects like those proposed near Shutesbury.”

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    Hotspots

    The Midwest Is Becoming Even Tougher for Solar Projects

    And more on the week’s most important conflicts around renewables.

    The United States.
    Heatmap Illustration/Getty Images

    1. Wells County, Indiana – One of the nation’s most at-risk solar projects may now be prompting a full on moratorium.

    • Late last week, this county was teed up to potentially advance a new restrictive solar ordinance that would’ve cut off zoning access for large-scale facilities. That’s obviously bad for developers. But it would’ve still allowed solar facilities up to 50 acres and grandfathered in projects that had previously signed agreements with local officials.
    • However, solar opponents swamped the county Area Planning Commission meeting to decide on the ordinance, turning it into an over four-hour display in which many requested in public comments to outright ban solar projects entirely without a grandfathering clause.
    • It’s clear part of the opposition is inflamed over the EDF Paddlefish Solar project, which we ranked last year as one of the nation’s top imperiled renewables facilities in progress. The project has already resulted in a moratorium in another county, Huntington.
    • Although the Paddlefish project is not unique in its risks, it is what we view as a bellwether for the future of solar development in farming communities, as the Fort Wayne-adjacent county is a picturesque display of many areas across the United States. Pro-renewables advocates have sought to tamp down opposition with tactics such as a direct text messaging campaign, which I previously scooped last week.
    • Yet despite the counter-communications, momentum is heading in the other direction. At the meeting, officials ultimately decided to punt a decision to next month so they could edit their draft ordinance to assuage aggrieved residents.
    • Also worth noting: anyone could see from Heatmap Pro data that this county would be an incredibly difficult fight for a solar developer. Despite a slim majority of local support for renewable energy, the county has a nearly 100% opposition risk rating, due in no small part to its large agricultural workforce and MAGA leanings.

    2. Clark County, Ohio – Another Ohio county has significantly restricted renewable energy development, this time with big political implications.

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