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The senator from West Virginia is retiring. Who will we think about now?
What can you say about Joe Manchin, perhaps the most important — and most complicated — American climate policy maker of the past decade?
Let’s start here: Soon, he won’t be a senator any more. On Thursday, Manchin announced that he will not pursue re-election in West Virginia in 2024.
“I’ve made one of the toughest decisions of my life and decided that I will not be running for re-election to the United States Senate,” he said in a video message. Instead, he said, he will be “traveling the country and speaking out to see if there is an interest in creating a movement to mobilize the middle and bring Americans together.”
We don’t have many details about what “mobilizing the middle” might look like; Manchin was recently said to be considering a third-party presidential run. If he did make a go for the White House, that would seemingly have disastrous consequences for Joe Biden’s re-election effort — and, in all likelihood, for climate action generally — because it could probably hand the 2024 race to Donald Trump.
But pending that possibility, Manchin’s decision immediately reframes several aspects of next year’s elections.
It means, first, that West Virginia Governor and serial coal-mine-safety violator Jim Justice will likely win Manchin’s seat, marking the end of a tectonic political realignment that saw the state go from solidly Democratic to solidly Republican.
Without West Virginia, Democrats’ path to a Senate majority now looks more like a tightrope: It requires Democrats to hold difficult seats in Ohio, Montana, Pennsylvania, and Arizona. Then the party needs to win in one additional state. But the pickings are slim. Are Texas or Florida really going to elect a Democrat to the Senate? Is Mississippi, Missouri, or Nebraska?
Manchin’s decision will, in other words, have big implications for what Democrats can and cannot do in government. Without a working Senate majority, Democrats will struggle to pass laws or appoint justices to the Supreme Court even if they control the House of Representatives and the White House.
But, of course, Manchin’s decision is even more profound because who he is — his anxieties, whims, and cognitive biases — has long had an outsized influence on legislation. Setting aside presidents and a few jurists, there may not be a recent Democratic policymaker whose personal views more closely shaped the law.
Manchin wielded power, above all, because he represented West Virginia, the most conservative state to send a Democrat to the Senate. That meant he was his caucus’s obvious marginal member and swing vote.
And you could tell. What other Democrat could get away with owning a coal plant while ostensibly overseeing the coal industry? (Manchin is the chairman of the Senate energy and natural resources committee.) What other Democrat could demand last-minute changes to an economic recovery package?
Manchin’s crowning legacy will be the Inflation Reduction Act, which is often described as “President Biden’s signature climate bill,” but which is smudged with Manchin’s fingerprints, too. As chairman of the Senate energy committee, Manchin had a good deal of de jure authority over the law; as the Senate’s swing vote, he had even more de facto power. The final bill text was hammered out in negotiations between Senate Majority Leader Chuck Schumer’s team — who were essentially negotiating on behalf of the rest of the caucus — and Manchin’s team.
You can see it in the law’s final policies.
Some of the Inflation Reduction Act’s most generous subsidies will go to the nascent clean hydrogen industry, which Manchin has long nurtured. If hydrogen becomes an anti-environmental boondoggle on par with ethanol, then Manchin will bear a good deal of the blame; if it decarbonizes the American industrial sector, he should get some credit.
Likewise, Manchin is why the bill’s tax credits for electric vehicles do not incentivize union membership.
He is behind the law’s peculiar rules about exactly which industries and organizations can claim their subsidies as direct cash payments. He also shaped the design of its carbon-capture tax credits.
If there is something distinctive in the IRA, the odds are good that Manchin either insisted on it, approved it, or didn’t notice it.
But Manchin drove other climate and energy policy too. He cowrote the bipartisan Energy Act of 2020 with Senator Lisa Murkowski of Alaska. That law focused the federal government’s industrial policy on carbon management, clean hydrogen, and critical minerals — some of the same topics that would dominate the IRA. It also expanded the powers of the Loan Programs Office, the Department of Energy’s in-house bank.
He criticized the Environmental Protection Agency and sometimes voted to overturn its rules. He consistently opposed carbon taxes or pricing carbon in any way, all but ensuring the idea’s political death in the short-term. Even his Senate career more or less began with him taking aim — literally — at Obama’s climate bill. During his first race for Senate in 2010, Manchin ran a TV ad in which he shot a rifle at a stack of papers labeled “cap and trade bill” and promised to take on then-President Barack Obama’s proposal.
In short, if you thought about climate policy over the past decade, you wound up thinking quite a lot about the likes, dislikes, and peculiarities of Joe Manchin. What he might support or oppose mapped the frontier of political possibility in the United States. He was, in short, potentially the most influential force in shaping American climate policy during the 2010s. (Only Mary Nichols, who has been California’s chief air-pollution regulator since 2007, might match his importance.)
My first thought is that Manchin may soon join that list of capricious ex-senators — Joe Lieberman and Ben Nelson come to mind — whose names, once synonymous with power itself, become the answer to bad trivia questions. But I have been thinking about Joe Manchin, 76, for a long time, and I expect to find it a hard habit to break. He is an ambitious, eccentric, and preternaturally lucky man. I suspect his next few decisions will prove even more important than those that have come before.
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On COP30 jitters, a coal mega-merger gone bust, and NYC airport workers get heated
Current conditions: Hurricane Erin is lashing Virginia Beach with winds up to 80 miles per hour, the Mid-Atlantic with light rain, and New York City with deadly riptides • Europe’s wildfires have now burned more land than any blazes in two decades • Catastrophic floods have killed more than 300 in Pakistan and at least 50 in Indian-administered Kashmir.
Offshore oil rigs in California. Mario Tama/Getty Images
Two weeks after de-designating millions of acres of federal waters to offshore wind development, the Trump administration Tuesday set a new schedule for auctions of oil-and-gas leases in the Gulf of Mexico and Alaska’s Cook Inlet, stretching all the way out to 2040. In a press release, Secretary of the Interior Doug Burgum cited the recently passed One Big Beautiful Bill Act as a “landmark step toward unleashing America’s energy potential” by “putting in place a bold, long-term program that strengthens American Energy Dominance, creates good-paying jobs and ensure we continue to responsibly develop our offshore resources.”
The lease plan may violate federal law, however, as the administration has not conducted environmental analyses or held public hearings before putting the auctions on the calendar. “There’s no world in which we will allow the Trump Administration to hold dozens of oil sales in public waters, putting Americans, wildlife, and the planet in harm’s way, without abiding by the law,” Brettny Hardy, an oceans attorney at the environmental group Earthjustice, said in a statement. “Even with its passage of the worst environmental bill in U.S. history, the Republican-led Congress did not exempt these offshore oil sales from needing to comply with our nation’s environmental statutes.”
In an open letter published Tuesday, André Corrêa do Lago, the veteran Brazilian diplomat leading the next United Nations climate summit, warned that “geopolitical and economic obstacles are raising new challenges to international cooperation — including under the climate regime.” The letter comes after UN-sponsored talks over a plastics treaty collapsed last week, with the U.S. joining fellow oil producers Russia, Saudi Arabia, and Iran in standing athwart more than 100 other countries that supported a deal to curb production of new disposable plastics.
The climate summit, known as COP30, is set to take place in the Brazilian Amazon city of Belém in November. It will be the first global climate confab since President Donald Trump returned to office and, on his first day back in the White House, kicked off the process to withdraw the U.S. from the 2015 Paris climate deal.
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Peabody Energy backed out of its $3.8 billion agreement to buy Anglo American’s coal mines following the unexpected closure of the deal’s flagship mine. On Tuesday, the largest U.S. coal producer said that an explosion last March at Anglo America’s Moranbah North mine in Australia resulted in a “material adverse change” to its deal. The move dealt a major blow to London-based Anglo American, which had planned to use the sale as part of a broader restructuring to fend off a hostile takeover attempt by rival BHP. Anglo American CEO Duncan Wanblad said he was “very disappointed,” according to the Financial Times, and the company said it would “seek damages for the wrongful termination.”
The deal comes amid a global comeback for the main fuel blamed for climate change. As my colleague Matthew Zeitlin wrote last month, “the evidence for coal’s stubborn persistence globally has been mounting for years. In 2021, the International Energy Agency forecast that by 2024, annual coal demand would hit an all-time high of just over 8,000 megatons. In 2024, it reported that coal demand in 2023 was already at 8,690 megatons, a new record; it also pushed out its prediction for a demand plateau to 2027, at which point it predicted annual demand would be 8,870 megatons.”
The California startup ChemFinity got a big boost on Tuesday, raising $7 million in a funding round led by At One Ventures and Overton Ventures. The company, spun out from the University of California, Berkeley, claims its critical mineral recovery system will be three times cheaper, 99% cleaner and 10 times faster than existing approaches currently found in the mining and recycling industries. “We basically act like a black box where recyclers or scrap yards or even other refiners can send their feedstock to us,” Adam Uliana, ChemFinity’s co-founder and CEO, told Heatmap’s Katie Brigham. “We act like a black box that spits out pure metal.”
At a time when record heat is regularly halting flights on sweltering tarmacs, service workers at New York City’s LaGuardia and John F. Kennedy airports are slated to protest on Wednesday to demand new workplace protections from extreme heat. The workers, many of whom handle cargo and ramp services for major airlines, said in a press release that extreme heat and lack of access to water, rest breaks, and proper training threatened more incidents of heat illness. One worker claimed to have recently lost consciousness inside the cargo hold of a plane due to heat. The members of chapter 32BJ of the Service Employees International Union will be joined by State Assemblymembers Steven Raga and Catalina Cruz in their demonstration, which is scheduled to begin at 10 a.m. near LaGuardia’s Old Marine Terminal.
I swear by the shvitz. My great grandfather, after whom I’m named, went to the same Russian bathhouse in Manhattan that my cousin, brother, and I visit regularly to enjoy the sauna and cold plunge. Turns out amphibians feel the same. A researcher at Macquarie University in Sydney found that frogs could fight off the deadly chytrid fungal infection plaguing the green and golden bell frog by sitting in “frog saunas.” Spending a few hours a day in warm enclosures that reach temperatures higher than 83 degrees Fahrenheit for a week or less is all that’s needed to kill off the fungus.
Rob and Jesse quiz Mark Rothleder, chief operations officer at the California Independent System Operator.
So far on Shift Key Summer School we’ve covered how electricity gets made and how it gets sold. But none of that matters without the grid, which is how that electricity gets to you, the consumer. Who actually keeps the grid running? And what decisions did they make an hour ago, a day ago, a week ago, five years ago to make sure that it would still be running right this second?
This week on Shift Key, Rob and Jesse chat with Mark Rothleder, senior vice president and chief operating officer of the California Independent System Operator, which manages about 80% of the state’s electricity flow. As the longest-serving employee at CAISO , he’s full of institutional knowledge. How does he manage the resource mix throughout the day? What happens in a blackout? And how do you pronounce CAISO in the first place?
Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
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Here is an excerpt from our conversation:
Jesse Jenkins: To make this a little bit more concrete, walk through how you’re orchestrating the generation fleet. What is the typical mix of resources that you’re calling on at different times of day, on a typical California day. Let’s start at 8:00 a.m. and, you know, move through the day.
Mark Rothleder: So if it’s like today, it’s a moderate summer day, there would be in the. There would be some thermal resources, gas resources that would already be on, probably near their minimum load, which is probably about 30%, 40% of their full operating capability. And they would be sitting there waiting for dispatch instructions as the load increased.
And I talk about the morning because people start turning lights on. This is when the load starts to increase, in that morning hour. So to balance the system as that load increases relatively quickly, you’re going to have a combination of probably solar starting to come up and produce, naturally, because the sun is coming out. You may have a little bit of wind production starting to increase because the wind’s starting to blow because the temperatures and the system are driving that wind. If that’s not enough energy, we’re dispatching probably thermal resources, probably doing some exchanges through the Western Energy Imbalance Market with the neighbors.
And then you get to about probably 9 o’clock, 10 o’clock ,and things stabilize. And then what ends up happening, at least in our system, is you start to see solar production continue to go up, but the load is not increasing. It’s kind of flattened out. We start to probably see some backing off of thermal resources that were brought up during that morning load pull. And now we’re starting to back off on those, and maybe even getting to the point where surplus energy in the middle of the day — we’re exchanging and maybe exporting some of our energy to our neighbors because we have surplus. We’re probably starting to see batteries charge up in the middle of the day because now we’ve got this cheap energy. And this is going to probably go on until about 4 o’clock, 5 o’clock in the afternoon, when the traditional peak of the day is, and this is when the highest gross load is.
And then we start to see another dynamic happen, and that is, at least in our system, the sun starts to set and then the solar production starts to decrease. What’s interesting about that is, as the solar production decreases, it happens over about a three-, four-hour period, and it’s a relatively fast ramp out of those solar resources. The load is not dropping. And in fact, if you think about —
Jenkins: It’s rising often, right?
Rothleder: It’s actually still rising because some of the load that was previously served by behind the meter rooftop solar, that load is also coming back on the system because the solar production is decreasing. So again, to rebalance the system and keep that balanced and straight, we have to start ramping up a couple things. We start to turn, maybe, what was exports around, and we start importing energy from our neighbors. We start discharging the batteries that we just charged up earlier. And to the extent we still need other energy, we probably have a combination of thermal gas resources that we’re bringing them off their minimum load, dispatching them up during the day, and probably some hydro resources that are able to be dispatched during the day.
Between 6 p.m. and 7 p.m. we hit what we call our net peak. We call it net peak because it’s the gross load minus wind and solar production. And that tends to be the most critical time when we need — since the ramp out of wind and solar, more solar, that kind of is the highest where we need other resources to be available and dispatched. And so once we get through that net peak, come around 6:30, 7 o’clock, things just start to gradually turn around. And then we’re ramping out over the rest of the day the thermal resources, the interchange, and the hydro resources that we previously dispatched up to get to that net peak. And this all starts over again the next morning.
Mentioned:
Jesse’s slides on long-run equilibrium and electricity markets
Shift Key Summer School episodes 1, 2, 3, and 4
Also on Shift Key: Spain’s Blackout and the Miracle of the Modern Power Grid
This episode of Shift Key is sponsored by …
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Music for Shift Key is by Adam Kromelow.
An agreement to privatize Minnesota Power has activists activated both for and against.
For almost as long as utilities have existed, they have attracted suspicion. They enjoy local monopolies over transmission (and, in some places, generation). They charge regulated prices for electricity and make their money through engaging in capital investments with a regulated rate of return. They don’t face competition. Consumer advocates habitually suspect utilities of padding out their investments and of maintaining excessive — if not corrupt — proximity to the regulators and politicians designated to oversee them, suspicions that have proved correct over and over again.
Environmental groups have joined this chorus, accusing utilities of slow-walking the energy transition and preferring investments in new, large gas plants and local transmission as opposed to renewables, demand response, and energy efficiency.
Add private equity to the mix and you have a recipe for the kind of controversy playing out in Minnesota over the proposed acquisition of the northern Minnesota utility Minnesota Power by Global Infrastructure Partners, an infrastructure investment firm acquired by BlackRock, and the Canada Pension Plan Investment Board, the investment manager for Canadian retirement savings.
The deal has attracted activist opposition from environmental groups like the Sierra Club, consumer watchdogs in Minnesota, as well as national policy groups critical of both utilities and private equity. It’s also happening in a moment when utility ratemaking has come under increasing scrutiny on account of rising electricity prices.
Utilities across the countries have requested $29 billion of dollars in rate increases so far this year, according to PowerLines, the electricity policy research group, while as of May, retail electricity prices were climbing at twice the rate of inflation. Utilities earn regulated rates of return on capital projects, and with data centers and artificial intelligence driving up demand for new electricity, investors are eyeing utilities as potential cash cows. The Dow Jones Utilities index has even slightly outperformed the market so far this year.
Global Infrastructure Partners announced that it had agreed to buy the northern Minnesota utility Minnesota Power’s parent company, Allete, for over $6 billion million last May, and the deal has been working its way through the utilities regulatory process ever since. In July, the Minnesota Department of Commerce reached a settlement with the company and its potential buyers that, among other provisions, agreed to a rate freeze and a reduction in the return on capital investment the new owners will be to earn.
While the companies were able to win the support of one part of the Minnesota governmental apparatus, another one harshly condemned the deal. Following the settlement announcement, administrative law judge Megan McKenzie recommended that the Minnesota Public Utilities Commission ultimately reject the deal. The judge’s recommendation is non-binding, but it is a comprehensive review of the evidence and arguments made by supporters and opponents of the deal that could have sway over the commission’s final decision.
The judge’s recommendation largely echoed the case advocates had been making against the merger. The opinion was laced with criticisms of private equity as such, arguing that the new owners would “pursue profit in excess of public markets through company control.” Ultimately, McKenzie concluded that “this transaction carries real and significant costs and risks to Minnesota ratepayers and few, if any, benefits. Accordingly, the proposed Acquisition is not in the public interest.”
The Minnesota Public Utilities Commission is expected to make a final decision in September. In the meantime, advocates on either side are continuing to press their arguments.
Citing the administrative law judge, Karlee Weinman, a research and communications manager at the Energy and Policy Institute, a frequent critic of utilities, told me that the advocate objections to the deal were twofold: One, that Minnesota Power might not be able (or willing) to finance its capital needs; and two, that as a private company, it will no longer be required to file documents with the Securities and Exchange Commission, removing a lever for ratepayer advocates.
The “layer of transparency” provided by SEC filings “is something that consumer advocates are finding valuable to help inform both their understanding of the utility and their advocacy on behalf of ratepayers,” Weinman told me. Or as a coalition of public interest groups argued more formally in a utility commission filing, “privatization of ALLETE and the discontinuation of ALLETE’s SEC reporting obligations would significantly reduce information about ALLETE that is available to the Commission and Minnesota ratepayers.”
Going private “would make it more difficult for Minnesota regulators like our commission to monitor the board’s decisions and hold the company accountable to state law, but also to the public,” Jenna Yeakle, a campaign manager at the Sierra Club and resident of Duluth, told me.
“We do not have a choice where our electricity comes from,” she said. “We are the most impacted by Minnesota Power’s choices and the decisions made at the state and federal level when it comes to our electrical utility, because we don’t get a choice in the matter.”
Unions, on the other hand, often play well with utilities, using their regulated status to ensure good jobs for their members. Construction unions especially are big fans of big capital projects, which means more construction jobs.
One of those unions is the LIUNA Minnesota & North Dakota, an affiliate of the Laborers' International Union of North America, the construction workers union. “We just want the utility to work, the utility works well for us, they use union labor, they build projects, they create jobs,” Kevin Pranis, its marketing manager, told me.
Pranis was especially skeptical of opponents’ arguments that changing the investor in an investor-owned utility would make a huge difference in terms of how it conducted itself in front of the Public Utilities Commission. “There’s this bizarre fan fiction that has developed around publicly traded stocks, that somehow they are transparent,” he said. Corporate filings rarely, if ever have the kind of information ratepayers and their advocates need in rate cases, Pranis argued.
“The Securities Exchange Commission doesn’t care about ratepayers. The New York Stock Exchange doesn’t care about ratepayers. Those regulations don’t serve ratepayers in any way. They serve investors to know what you’re investing in.”
The environmental arguments also go in the other direction. One supporter of the deal, former Loans Program Office chief Jigar Shah, wrote in Utility Dive that “to fully decarbonize its electricity sales and keep pace with rising demand, Minnesota Power must navigate an increasingly complex and capital-intensive landscape.”
“What Minnesota Power needs is long-term vision and stable capital,” he continued, which is “precisely what this private investment offers. That’s the only way to do the big things required to serve its communities, especially when federal energy rhetoric doesn’t always align with real on-the-ground needs.”
Minnesota law mandates that the state reach 100% carbon-free electricity by 2040, which supporters of the deal have said justifies allowing Minnesota Power to be owned by deep-pocketed investors.
Two clean energy groups, the Center for Energy and Environment and Clean Energy Economy Minnesota, wrote in a filing that meeting that goal would require “significant and unprecedented investment,” and that “although the exact investment levels needed may be uncertain or disputed by parties, the scope of investment needed is clear, and the Acquisition makes that level of capital available to Minnesota Power today.”
LIUNA pressed the point more forcefully in another filing, arguing that opponents of the deal “have dangerously underestimated the threat posed by a lack of ready capital to undertake historic investments,” and that they were “whistling past the graveyard.”
Minnesota Power and its proposed buyers, for their part, have argued in a that Allete requires “more than $1 billion in new equity to fund its expected investment requirements over the next five years,” including to comply with the emissions requirements, and pointed out that “in the Company’s 75-year history in publicly traded markets, the Company has raised $1.3 billion in equity.”
Judge McKenzie disagreed in her opinion, arguing that capital commitments weren’t enforceable and echoing the public interest groups in saying that Minnesota Power had told its investors that it was able to access capital markets when it needed to. The company and its investors have argued this was conditional on its ability to find a buyer, and that “further analysis to identify its approach to comply with the Carbon Free Standard” showed the investment need.
Judge McKenzie also got to the heart of recent debates around data centers and grid management, arguing that the planned investments in new generation and transmission weren’t truly necessary to meet the legally mandated emissions standard. “ALLETE could reduce capital needs by making greater use of power purchase agreements (PPAs) to reduce capital spending on self-built generation. Greater use of demand response, energy efficiency measures, and grid-enhancing technologies could also reduce the need for capital spending on generation,” she wrote.
Ultimately, how Minnesota Power conducts itself — the projects it engages in, the rates it charges consumers and industrial customers — will be up to the Minnesota Public Utilities Commission and the state legislature, whether it’s owned by public investors or infrastructure and pension funds.
“None of those changes will affect the Commission’s authority, process, or obligation to regulate Minnesota Power’s actions,” the two clean energy groups wrote in a filing. Utility regulation will continue to be a challenge, but the investors may not matter as much as the utility.