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Who gets to block an energy project?

One of the longest-running environmental controversies of Joe Biden’s presidency is now over, but it presages much bigger controversies to come.
Last week, the Supreme Court cleared the way for the Mountain Valley Pipeline, a 303-mile natural gas project that will link West Virginia’s booming gas fields to the East Coast’s mainline gas infrastructure. The justices lifted a halt on the project that had been imposed by a lower court. In doing so, they all but guaranteed that the project will get built.
But even if the Mountain Valley Pipeline case is over, the issues and questions at the center of the dispute are not. And they suggest that a profound and unanswered tension sits at the heart of environmental and climate law — one that concerns not only conservation, but the very nature of American democracy as well.
While environmental advocates have fought the pipeline for years, it only became a national issue when Senator Joe Manchin of West Virginia began to champion the pipeline last year. He insisted that the Biden administration back the project in exchange for his support of Biden’s flagship climate and spending bill, which became the Inflation Reduction Act.
After several failed efforts, Manchin finally found a way to help the pipeline this spring, when he got Congress to automatically approve the project as part of the bipartisan deal to raise the debt ceiling. The Fiscal Responsibility Act of 2023 — better known as the debt-ceiling deal — ordered federal agencies to issue every outstanding permit necessary for the pipeline’s construction. It declared that those permits could not be challenged in court.
Furthermore, it said that legal challenges to this accelerated decision could not be heard by the Fourth Circuit, the appeals court with jurisdiction over West Virginia, but only by the D.C. Circuit Court of Appeals. The D.C. Circuit is often described as the country’s second most powerful court; more saliently, fewer of its judges were appointed by Democratic presidents.
And that seemed like the end of the story. But in June, the Sierra Club and other environmentalist groups sued to block the Mountain Valley Pipeline again. They now alleged that Congress had violated a key Constitutional idea — the separation of powers — by rushing to approve the pipeline.
Specifically, they argued that the debt-ceiling deal violated a 151-year-old case called United States v. Klein, or just Klein for short. In that case, which revolved around several hundred cotton bales seized in Mississippi during the Civil War, the Supreme Court ruled that Congress could not pass a law that forced a court to rule on a case in a certain way. In other words, Congress may not pass a law that says: If Smith sues Jones, Smith wins.
The Sierra Club and others argue that Congress violated Klein when it automatically approved the pipeline in the debt-ceiling bill. The pipeline had been mired in permit-related lawsuits in the Fourth Circuit for years; its construction has led to dozens of alleged water-quality violations. So when Congress granted those permit approvals anyway, it was essentially doing an end-run around the appeals court. That was a clear-cut violation of Klein, environmentalists argue.
Is it so simple? In a brief supporting the pipeline, Laborer’s International Union of America argues that Congress acted entirely within its authority. Congress has essentially unlimited authority to authorize agency actions and revise court jurisdiction, the union says.
But here is the rub. To make their case, environmentalists appealed to Chief Justice John Roberts — specifically a dissent he wrote back in 2018.
That year, the Court declined to strike down an Obama-era law that told courts to “promptly dismiss” any lawsuits challenging a tribal casino in Michigan. But the majority could not agree about why, and three conservative justices — led by Roberts — dissented, arguing that the Obama-era law violated Klein because it forced the Court’s hand on a lawsuit, even if the lawsuit in question had not been filed yet.
In their case against the pipeline, the environmentalists urged the Court to adopt the logic of that dissent. And that may reveal something surprising about the tack taken by environmental groups here: Their arguments draw from what has increasingly come to seem like a conservative approach to Constitutional law. And while there are understandable reasons for this, it shows that the environmental movement may be facing a deeper crisis than it realizes. The questions now confronting the climate movement go to the center of questions over American democracy.
Above all: Who gets to rule in the American republic, and who gets to determine what is and isn’t constitutional? This is a live debate, and it goes to the center of contemporary fights over permitting reform. It is worth dwelling on for a moment.
The standard historical line is the Supreme Court, above all, decides what is and isn’t Constitutional — a power that it has claimed for itself since Marbury v. Madison in 1803.
But there is another tradition in American life, which holds that the American people, not the justices, are the final arbiter of constitutionality. President Abraham Lincoln backed this view in the run-up to the Civil War. And so did the men who created the Klein crisis.
Klein did not come out of nowhere. The case emerged during one of the most wrenching moments in our Constitutional history, when radicals and moderates battled over the meaning of the Civil War in the wake of Lincoln’s assassination.
On one side, Radical Republicans in Congress wanted to enshrine equality at the heart of the American republic, protecting the economic and civil freedoms of newly emancipated Black people and harshly punishing their traitorous Southern enslavers. On the other, moderate Republicans and Democrats sought a more reconciliatory approach to Reconstruction, welcoming former Confederate elites back into American life.
This is the background of Klein. When Congress passed the 1870 law that provoked the Klein lawsuit, it sought to prevent ex-Confederates from claiming federal money as compensation for their losses. It wanted to block a man named John Klein from being paid for cotton bales seized from his client during the Civil War, specifically because Congress believed that his client had been part of the rebellion and therefore did not deserve federal funds.
But that was part of a much broader fight between Congress, the White House, and the Supreme Court, in which radical Republican lawmakers sought to assert the people’s — and therefore Congress’s — authority to govern the other branches. Since the people created the Constitution, radicals argued, then the people had final authority over the courts that it made. “It would be a sad day for American institutions and for the sacred cause of Republican Governments if any tribunal in this land, created by the will of the people, was above and superior to the people’s power,” Representative John Bingham, an Ohio radical and the leading author of the Fourteenth Amendment, said.
That theory was revived 60 years later, when President Franklin D. Roosevelt moved to rein in a Supreme Court that kept striking down his New Deal programs. He proposed packing the court with more favorable justices, arguing that the three branches of the Constitution were like a team of three horses pulling a wagon. “It is the American people themselves who are in the driver’s seat,” he said, and therefore the people who should determine the make-up of the Court.
Although Roosevelt’s packing scheme failed, it resulted in one of the Court’s more conservative justices switching to become a more reliably pro-New Deal vote. And since Democrats controlled the Senate for all but four of the following 43 years, the Court lurched in a more liberal direction through much of the 20th century. By the 1990s, the judiciary was the favored branch of establishment liberalism, an august arbiter of civil protections as enacted in Brown v. Board of Education, Loving v. Virginia, and Roe v. Wade.
No longer. Faced with the most conservative Supreme Court in 90 years, progressives have rediscovered this forgotten controversy in the Constitution. Congress, they argue, has the power and duty to regulate the Supreme Court when it strays too far from popular will. The text of the Constitution allows Congress to set exceptions to the Court’s “appellate jurisdiction,” meaning that it could simply prevent the Court from ruling on a given topic, such as abortion or climate change.
Progressives frame this claim in small-d democratic terms, framing the Supreme Court and the electoral college as institutions designed to rob majorities of the ability to govern. “As recent events have made clear, powerful reactionaries are waging a successful war against American democracy using the countermajoritarian institutions of the American political system,” the liberal columnist Jamele Bouie wrote in The New York Times last year. But “the Constitution gives our elected officials the power to restrain a lawless Supreme Court,” he added, even if it might “spark a constitutional crisis over the power and authority of Congress.”
Conservatives have noticed this push. Last week, Justice Samuel Alito argued that Congress has no ability whatsoever to set limits on the Court’s behavior. “I know this is a controversial view, but I’m willing to say it,” Alito told The Wall Street Journal. “No provision in the Constitution gives them the authority to regulate the Supreme Court — period.”
Although Alito is speaking in broader terms, his enmity gets at the simmering Constitutional dilemma at the heart of Klein, the precedent that environmentalists are citing to try to block the Mountain Valley Pipeline. When Congress approved the pipeline earlier this year, was it expressing a democratic view that must be respected by the court system (even if climate activists don’t like it)? Or was Congress instead running roughshod over due process and violating the separation of powers?
These are not academic questions. Although Congress intervened to approve a fossil-fuel pipeline this year, it could just as easily intervene to approve clean-energy infrastructure in the future. Across the country, renewable projects and long-distance electricity transmission have been slowed down by environmental lawsuits and permitting fights; even the Sierra Club has recognized the “NIMBY threat to renewable energy.” If lawsuits were to imperil, say, a major offshore wind project, should a Democratic Congress resolve that fight by granting permit approvals by fiat — or should environmentalists reject that intervention, too, as illegitimate? Under the logic of the anti-pipeline lawsuit, granting permit approvals to any stalled energy project — whether fossil or clean — would violate Klein.
These questions matter because there is no near-term political situation in which Congress and the Supreme Court will only do good things for the climate and not bad things. But there is no way to judge them without making a political assessment: Is Congress likely to expedite a renewable project? Given Democrats’ zeal for tackling climate change, such a thing doesn’t seem ludicrous to me. But if environmentalists had won their case against the pipeline, then lawmakers’ hands would be tied in the future: They could not approve a wind farm, solar plant, or nuclear reactor in the same way that they tried to rubber-stamp the MVP. They would have to wait, instead, for the legal process to run its course.
We should be clear, here, that just because the Sierra Club and others pursued a conservative line of argument in this case does not mean that they are themselves reactionary. Their job — unlike that of politicians or pundits — is to win lawsuits. They have to fight on the terrain that politics has given them, and since that terrain tilts to the right today, they are sometimes going to advance right-leaning arguments.
But the broader environmental movement, which emerged in the 1950s and '60s as a cross-partisan, mass democratic campaign, should be careful not to confuse its goals with those of the elite legal movement. The question hangs over climate policy, permitting reform, and the entire challenge of decarbonization: How should climate advocates balance the goals of decarbonization and democracy? What does democracy even mean for the environment, a term that encompasses the water quality of a stream and the carbon intensity of the atmosphere? In the 21st century, how should Americans exert their will to reshape the land, protect the environment, and power their society?
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Julie Liu is converting gas customers to heat pumps, one home at a time.
For Julie Liu, electrifying a home is like putting on an Off- Off- Broadway show.
Working almost entirely alone, Liu serves as producer, stage manager, and director, bankrolling the production, hiring the crew, arranging the logistics, choreographing the action, and dazzling the audience — the homeowner or tenants — along the way. Heat pumps and induction stoves are the stars. Plumbers, HVAC technicians, and insulation specialists sub in for set decorators, sound engineers, and costume designers. Electricians play themselves.
If all goes well, after just a week or so of focused, frenzied work, the show arrives at the grand finale: the capping of the gas line.
Liu has staged this performance more than 25 times since 2023 as the implementation contractor for Electric Advantage, an incentive program in New York offered by the gas and electric utility Con Edison. The program covers 100% of the cost of replacing a building owner’s gas-powered appliances with electric versions, plus installing insulation and air sealing. Although it sounds too good to be true, there’s no catch — except that you have to be lucky enough to own a building that’s eligible for the program and agree to cut your gas connection.
ConEd, as it’s known, delivers natural gas to just over a million customers in the Bronx, Manhattan, Northern Queens, and Westchester County, and qualifies buildings for the program by first identifying sections of pipeline on the peripheries of its network that are due for replacement. Then it runs a cost-benefit analysis. If it would be cheaper to electrify all of the buildings served by a given stretch of gas main than to dig up the street and replace the pipe, the company starts going out to the homeowners and businesses along the line to gauge their interest. If the owners agree to go electric, that’s when Liu steps in.
There’s no established name for what Liu does. “It’s not a home improvement business, it’s not an energy efficiency business, it’s not an HVAC business,” she told me. “It’s about putting together a tight live production.” An apt title would be “electrification contractor” — one of the few, if not the only one of her kind operating in the New York area.
Anyone who has tried to electrify even just one appliance in their home has probably wished they could hire someone like Liu. Between finding an available and trustworthy contractor, navigating quotes and equipment choices, and managing ballooning costs, the process is often frustrating and confusing. It’s a major time commitment, not to mention a big capital investment — not a winning formula for mass adoption.
Liu doesn’t offer her services to just any homeowner, though. She only takes on jobs that come through contracts with utilities and government agencies like the New York State Energy Research and Development Authority, or NYSERDA. Having ConEd’s backing is actually one of the major benefits Liu brings to the work. It means she’s held to stringent standards of performance. Her business fronts the full cost of every Electric Advantage project, putting up tens of thousands of dollars for parts and labor, and only gets paid back by the utility after she demonstrates she’s met every requirement. Engineers check her design choices on the front end and the installations on the back end. A missing anti-tip bracket on a stove once almost cost her an entire $100,000 job, she told me.
Liu is the first to admit that all of this is a huge headache and a tough business model. She also fundamentally believes in this being utility-backed work. When a homeowner pursues a project on their own, the oversight is only as strong as their own ability to vet contractors and manage the job — which, with limited time, information, and leverage in the market, is likely not nearly as strong as Liu’s.
“My conviction is, for the middle class to thrive, we need to have a lot of things that are expensive to do and complex to do to become utilities,” Liu said. “That’s my hypothesis since I was 22.”
In the climate world, a lot of advocates and experts also believe that a utility-run program like Electric Advantage is the key to unlocking an all-electric future, although for slightly different reasons. When random individual homeowners decide to electrify, a shrinking number of remaining gas customers have to pay to maintain the entire pipeline system. If utilities instead strategically prune the gas system while helping customers go electric, the theory goes, it can reduce costs for remaining gas customers while also creating sustained demand for heat pump retrofits. This would help build the workforce necessary to perform them and create economies of scale.
The problem is, ConEd has 4,400 miles of gas mains. In just over two years of running Electric Advantage, the utility has retired about half of one mile. If the program, or similar ones at other New York utilities, were ever to scale from converting about a dozen buildings a year to taking on the whole state, it would need a lot more Julie Lius. ConEd has a small network of contractors who take on projects with more limited scopes, but Liu is the only one doing whole-home decarbonization.
“It’s high capex deployment of complex work in the field, and you have to have people who go into people’s homes and not piss them off,” said Liu. “That’s a very unique business.”
Liu is not exactly a known figure in the world of building electrification. She’s not on social media or otherwise broadcasting her accomplishments or policy views. You won’t find her headlining clean energy panels or on the boards of nonprofits. But Liu has been quietly leading building electrification in the New York area for nearly a decade. Her early belief in heat pumps and determination to bring them to the New York market helped lay the foundation for future programs in the state.
Long before all of this, Liu was a Taiwanese immigrant growing up in Hacienda Heights, Los Angeles. Her family moved to California from Taipei in 1983, just before she entered seventh grade. Liu told me she “did all the good, dutiful-daughter things.” Her family owned a small furniture manufacturing business, and she went to college at Carnegie Mellon for business and industrial design with the intention of helping her dad produce “more inspiring furniture than colonial reproductions.”
Then her education at Carnegie Mellon took her in a different direction. The programs were built around “productivity, process orientation, efficiency, build it cheaper, faster — it’s all about, can you get things done?” She developed an appreciation for utilities, in a broad sense — for how much of the economy was built around “serving more and more people at scale, and serving them better things.”
When she graduated in the mid-1990s, Liu broke the news to her parents that she wanted to get into telecommunications — the hot field at the time. She initially thought she wanted to work at the Federal Communications Commission, but some early mentors warned her that she wasn’t suited for government work and connected her with a job at DirectTV. “You’re too eager to get things done, you’ll be banging your head against the wall,” she recalled being told at the time. “Go to the private sector.”
She went on to spend the next 15-odd years working in satellite television in New York, with a brief interlude starting a software-as-a-service company with an ex-boyfriend that was a little too ahead of its time, according to Liu. She was successful in the industry, but she wasn’t very happy, she told me. She felt like she was “growing couch potatoes.”
By 2014, after a few zigs and zags — business school, a stint at an online real estate startup in Luxembourg — Liu found herself back in New York, unemployed, and spending a lot of her time trying to fix up the rat-infested Brooklyn brownstone she owned. The building had an oil-burning heating system that was draining her bank account. She wanted to install minisplit heat pumps, which were everywhere back in Taiwan, but at the time nobody was really doing that in New York.
In early 2016, still unemployed and living off savings and tenant rent, Liu reached out to the New York State Energy Research and Development Authority, or NYSERDA, to ask about incentives for minisplits, and got connected to a consulting firm called the Levy Partnership that was putting together a proposal for the agency’s first-ever heat pump pilot project. The company told her that brownstones were too difficult and expensive, though, and that it was planning to propose doing the pilot in just a couple of mobile homes on Long Island.
Liu was peeved. Statistically that wouldn’t have even constituted a demonstration, she told me. “That’s not even an alpha in the world of where I came from, satellite communications.” She made a bet with the firm. It was a Thursday. If she could get a bunch of her neighbors to sign letters of interest in the pilot by Monday, she told the company, then “you’re gonna copy and paste that trailer park proposal and say there’s gonna be one for brownstones.”
Needless to say, she got the letters. But Liu didn’t just get the Levy Partnership to expand its proposal or to include her brownstone in the pilot. She convinced it to hire her to help implement the projects. She had looked up the census data on home heating and saw that about half the boilers in the New York City area used expensive heating oil. “I was like, there’s the money,” she told me. She saw that people could lower their bills by switching to heat pumps, while also getting access to better cooling in the summertime. “The business opportunity was just like when I got into satellite, right? It was a transition,” she said.
A week after she and the firm co-submitted their proposal to NYSERDA, Liu incorporated her new company under the name Centsible House. (Her business now goes by the name Carta Electric Homes.) NYSERDA awarded the team the funding a few months later, and by March 2017 they were executing agreements with homeowners to participate. The pilot ran for two years and installed heat pumps in 20 homes throughout Brooklyn, Queens, the Bronx, and Long Island, including Liu’s brownstone. Learnings from those projects informed the development of New York’s statewide Clean Heat program, a partnership between utilities and the state that launched in 2020, offering rebates for heat pumps. Liu was “patient zero,” she told me.
After that, NYSERDA as well as ConEd and another local utility, National Grid, hired Liu for other demonstration projects and heat pump programs. She racked up more than a dozen trainings and certifications from the Building Performance Institute, the Environmental Protection Agency, and various equipment manufacturers, developing expertise in building envelopes, heat pumps, refrigerant systems, and health and safety.
In this piecemeal way, Liu created the job of the electrification contractor from the ground up. By the time ConEd was preparing to launch the Electric Advantage program, Liu had the only contracting business in the area that was essentially purpose-built to take it on.
On a recent Thursday morning in Croton, New York, a suburb of New York City, the show was behind schedule. Liu and I pulled up to a two-family house at the top of a hill to oversee what was supposed to be the “grand finale” day of an Electric Advantage-funded retrofit.
In this case, workers had already put in a new electrical panel, minisplit heat pumps, and a heat pump clothes dryer. Now, electricians would rewire the kitchens with 220-volt outlets for new induction stoves, while a father and son duo of plumbers would put heat pump water heaters in the basement, and a weatherization team would spray insulation around the perimeter of the basement roof and attic floor.
While still sitting in the driveway, Liu called PC Richard, the appliance store, to check on the stove delivery, but the sales rep on the other end was confused — she didn’t have anything scheduled. Liu kept her cool and worked it out, setting a new delivery date for the following day. She turned to me, with sympathy, to let me know this meant I wouldn’t get the denouement she had promised — the cutting and capping of the gas line. She made sure the plumbers could come back on Friday to finish the job.
The planning for this project began many months before, with a knock on the door from a man named Mark Brescia, who manages Electric Advantage for ConEd. Brescia does all the initial outreach, making house calls, phone calls, and sending emails, trying to sell homeowners on the idea. Part of the challenge is that in most cases, unless 100% of the buildings served by a given gas main agree to participate, the company can’t move forward because it won’t be able to retire the pipe. The majority of successful Electric Advantage projects to date have replaced gas mains that were serving a single building.
The company doesn’t sell the program to customers by talking about climate change or emissions. Instead, Brescia explains that the money that would have been spent digging up a gas pipeline could instead be used to buy them brand new appliances. “Customers are excited about the opportunity to make their everyday living more comfortable,” Brescia told me when I asked what the biggest selling point tended to be. They also “no longer worry about having to spend money to replace equipment when it fails.” If the building owner is interested, the next step is for them to schedule a visit from Liu, who does a site evaluation and budgets the job.
Survey data collected by ConEd shows that the most common reason customers decline to participate is a preference for gas cooking. The second is fear of higher electric bills. ConEd makes no guarantees to customers that their overall bills will go down if they participate, but by pairing the new appliances with air sealing and insulation, it tries to ensure the homes will run as efficiently as possible. Liu does her best to provide customer education, walking them through how to operate their heat pumps correctly — running the devices consistently, rather than turning them up and down or on and off, which uses more energy. Customers can also opt in to a special ConEd electricity rate that can save heat pump customers money if they run their systems this way.
“Many customers are still learning about the superior performance and convenience these technologies offer,” Brescia said. But there are also other bottlenecks to expanding the Electric Advantage program. Under New York law, if customers want to keep their gas service, ConEd must oblige them. So unless and until legislators change this “duty to serve,” the program will be hamstrung by customers who turn it down.
The program also currently only targets replacement of leak-prone “radial” mains — pipes that connect to the wider gas distribution system on just one end — as these can be removed without affecting system safety or reliability. The path to expanding it beyond these is uncertain because, as currently structured, that would start to put an untenable burden on customers.
Whether the money goes to a new gas main or a home electrification project, it comes from ConEd’s gas ratepayers through their bills. Whenever ConEd identifies a new batch of mains that meet the program’s specifications, it must submit a benefit-cost analysis to state regulators for approval to pursue the projects before it can begin reaching out to homeowners. In the most recent batch submitted to regulators, for example, replacing the 26 mains identified would have cost nearly $8 million, while the estimated cost of electrifying the buildings served was around $6 million, plus another $1 million in electric system upgrades. The latter is obviously a better deal for customers, even if, as an incentive, ConEd earns back part of the difference as a bonus — also paid for by customers.
Since gas customers pay for the program, it doesn’t totally solve the problem of a shrinking number of customers covering these major investments, even if they are spending less than they otherwise would. And once the most cost-effective projects get taken care of, the expense of electrification will be harder to justify.
Growing the program also depends on having more contractors like Liu to implement it, Brescia told me. Liu has a proven track record of coordinating multiple trades, upholding standards, and educating customers. “Delivering an exceptional customer experience is essential to building trust and driving widespread adoption of electric appliances,” he said.
Throughout the day that I spent with her, Liu vacillated over the question of whether she should or even could expand her business. Working alone enables her to keep costs down, she told me. “I cannot afford to hire additional people,” she said, “because every extra bit of cash flow I end up generating as a profit gets fed to more jobs” — that is, more electrification projects. She also doesn’t want to take on a bunch of high interest debt in order to front more capital to take on more projects.
At other points, she talked about scaling as both important and inevitable. She believes in whole-home electrification — both as a climate solution and as a way to change people’s lives for the better — and wants to see other entrepreneurs like her, especially women, be able to pursue this as a career. She already gets more job leads than she’s able to pursue. She’s starting to think about other fundraising options, such as finding private investors.
Liu also recently started working with a Columbia University masters student to develop software that would help manage and automate all of the “mind-numbing, insane amounts of reporting, submissions, and invoicing” she has to do. Although she already does all of the administrative work digitally, the process has only gotten more arduous as the various programs and companies she works with frequently change what and how she has to report back, whether due to shifting policies or just a round of McKinsey-ification. This is part of what prevents her from being able to take on more work, since all the bureaucratic overhead makes it harder for her to fully close a job and get paid.
Although it’s still very early in the process, her hope is that this kind of software solution could also make it easier for others to get into the field.
“I actually really think this is a very suitable career for every eight-year-old little girl who wants a Barbie’s dream house,” she told me. “If every woman can run a $10 million electrification business, it’d be great. I think we’ll get a lot more done.”
Current conditions: Everywhere from the Midwest to New York City are bracing for snow today • The death toll from flooding in Southeast Asia has eclipsed 1,000 • Temperatures of 95 degrees Fahrenheit in French Guiana, the westernmost border of the European Union, have broken December records.
Data centers’ projected electricity demand has grown so much in the last seven months that BloombergNEF increased its forecast by nearly 40%. In a new analysis published Monday, the consultancy estimated that power demand from U.S. data centers will surge to 106 gigawatts by 2035. That’s 36% higher than BloombergNEF’s outlook published in April, “illustrating just how quickly the sector is expanding,” the consultancy wrote.
The finding illustrates the key challenge facing the grid as data centers complete construction far faster than new gas turbines, nuclear reactors, or even solar panels can be built and patched onto the grid. That reality has put new value on the ability of data centers to power down when the grid is overtaxed, a process Heatmap’s Matthew Zeitlin described as “one weird trick for getting more data centers on the grid.” It also shows why data centers are becoming so politically contentious that the “backlash,” as our colleague Jael Holzman put it, “is swallowing American politics.”
Back in August, I told you about how the Federal Emergency Management Agency suspended staffers who signed onto a letter criticizing President Donald Trump’s plans to gut the agency. Now the Trump administration has reinstated 14 employees placed on administrative leave after their signatures on a letter addressed to Congress were considered “misconduct.” In notices sent to the workers last week, which The New York Times reviewed, FEMA said the “misconduct investigation has been closed, and as a result you are being removed from administrative leave.” The notices did not disclose the probe’s findings, and FEMA’s parent agency, the Department of Homeland Security, didn’t respond to the newspaper’s questions.
The move comes as Illinois Governor JB Pritzker accuses Trump of politicizing disaster relief. The billionaire Democrat, who is widely discussed as a potential presidential candidate in 2028, said the White House rejected two separate requests for $130 million to help households affected by storms in late July and mid-August. E&E News called the denial “unusual” since “the damage documented by the administration was at such a high level that it would routinely lead to a presidential approval for disaster aid.”
The National Renewable Energy Laboratory is dead. Long live the National Laboratory of the Rockies. The lab’s focus on clean energy wasn’t unique. Nuclear power, for example, benefits from receiving the primary focus at sites such as the Idaho, Argonne, and Oak Ridge national laboratories. But the Department of Energy said Monday that the rebranding was part of an effort to broaden NREL’s scope. “The energy crisis we face today is unlike the crisis that gave rise to NREL,” Assistant Secretary of Energy Audrey Robertson, a key deputy of Secretary of Energy Chris Wright (whose unique professional history with Wright I wrote about last week), said in a statement. “We are no longer picking and choosing energy sources. Our highest priority is to invest in the scientific capabilities that will restore American manufacturing, drive down costs, and help this country meet its soaring energy demand. The National Lab of the Rockies will play a vital role in those efforts.”
In its press release, the Energy Department said NREL was formed amid the 1973 oil crisis and that the new name “reflects the Trump Administration’s broader vision for the lab’s applied energy research, which historically emphasized alternative and renewable sources of generation, and honors the natural splendor of the lab’s surroundings in Golden, Colorado.”
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In March, the Trump administration approved a $5 billion loan aimed to help restart the French oil giant TotalEnergies’ controversial liquified natural gas project in Mozambique. Though the project initially had international support, the southeast African nation has faced ongoing challenges from extreme weather and an Islamist insurgency, which mounted a deadly terrorist attack that caused work on the project to shut down in 2021. Troops from Rwanda have since come in to secure the area.
On Monday, however, the British government decided to pull its $1.15 billion loan, the Financial Times reported. Initially approved in 2020, the public financing faced fierce pushback from environmental and human rights groups. The Netherlands also announced Monday that it would stop backing the project.
Direct air capture is going big in Japan. On Tuesday morning, the U.S. carbon removal startup Heirloom announced investments from the Development Bank of Japan and Chiyoda Corporation, building on $150 million in Series B funding the company closed last year. That financing round also included investments from Japan Airlines, the industrial giant Mitsubishi Corporation, and the trading behemoth Mitsui & Co. The move comes as Japan’s greenhouse gas-trading system is poised to shift from voluntary participation to mandatory compliance next year, becoming Asia’s second-largest carbon market.
Heirloom had planned to build a giant DAC facility in Shreveport, Louisiana, as Heatmap’s Katie Brigham reported last year. But as our colleague Emily Pontecorvo wrote in October, the Trump administration looks poised to slash federal funding to support construction of DAC plants, making the fate of the Shreveport project unclear.
In the race to develop next-generation technology to harvest water straight out of the air, AirJoule Technologies has a promising lead. The GE Vernova-backed startup is already publicly traded and has deals with major industrial giants such as appliance maker Carrier. Now the company has inked a deal with a hyperscaler to sell water to cool data centers and use waste heat from the servers to power production of that same water. In a press release, the data center company, Nexus Data Centers, said AirJoule’s “waste-heat-to-water approach provides a superior solution by utilizing thermal energy we are already generating to produce high purity water for electricity production and cooling systems.”
Editor’s note: This article has been updated to correct the relationship of the new investments in Heirloom to its previous funding round.
A new working paper from a trio of eminent economists tallies the effects of warming — particularly extreme weather — on Americans’ budgets.
Attempts to quantify the costs of climate change often end up as philosophical exercises in forecasting and quantifying the future. Such projects involve (at least) two difficult tasks: establishing what is the current climate “pathway” we’re on, which means projecting hard-to-predict phenomena such as future policy actions and potential climate system feedbacks; and then deciding how to value the wellbeing of those people who will be born in the decades — or centuries — to come versus those who are alive today.
But what about the climate impacts we’re paying for right now? That’s the question explored in a working paper by former Treasury Department officials Kimberley Clausing, an economist at the University of California, Los Angeles, and Catherine Wolfram, an economist at the Massachusetts Institute of Technology, along with Wolfram’s MIT colleague Christopher Knittel.
“We wanted to do the accounting exercise and put it all together,” Wolfram told me. Their method: Simply add up the existing harms of climate change, and boom, there’s your answer.
This approach stands in contrast to the more well-worn modeling and forecasting projects that make up much of the climate harms literature. “Projections about the future are important to make future-oriented policy,” Clausing told me. “But one of the things that’s kind of surprising and interesting to us that I don’t think has been fairly accounted for is how much climate change is already affecting household budgets.”
The paper is meant to intervene in current debates in climate and progressive policy circles over affordability — namely whether policy to address climate change should be put on the back (induction?) burner in light of concerns about how restrictions on fossil fuels or mandates for renewable energy can increase consumer costs, especially utility bills.
“What really motivated the paper, to be honest, is that we noticed that a lot of observers have made statements about climate policy action where they’re like, We’d love to do this, that, or the other thing, but it’s hard to do because the action would fall more heavily on the poor.”
The paper began its life in the fall as part of the semi-annual Brookings Papers on Economic Activity conference before being released this week as a working paper by the National Bureau of Economic Research this week.
Their research has not yet been peer reviewed, but the authors found that even using what they describe as a “narrow accounting” method — looking only at climate impacts from heat and extreme weather on household budgets and mortality — there were “sizable costs to U.S. households from recent climate change patterns.” Those started at $400 per year and went as high as $900 depending on how extreme weather were attributed to climate change, adding up to an aggregate cost of about $50 billion to $110 billion nationwide.
The direct effects of high temperatures may be easier to forecast, but the most extensive damage of climate change, in the United States, at least, runs downstream from high temperatures: storms, floods, and especially wildfires. Clausing and the authors attribute this to the fact that the United States has already made huge investments in adapting to heat in the form of air conditioning. Adaptations for natural disasters — flood walls, moving homes and businesses out of flood plains, universal indoor air purification, building codes for fire prevention — are farther behind.
Looking specifically at cost increases due to health effects from climate change, wildfires are the primary cost center.
“Wildfires have two impacts,” Wolfram told me. “One is the destruction that they cause — we see that in property insurance. The other thing, and that is probably the most surprising to us, is how bad the wildfire smoke has become.”
Those same wildfires, of course, feed into spiraling insurance costs, especially in the West.
Insurance costs top the list of household costs the authors attribute to climate change more broadly, making up more than half of the total. Citing research on homeowners insurance by University of Pennsylvania and University of Wisconsin researchers Benjamin Keys and Philip Mulder, the authors found that “average nominal premiums rose by 33% between 2020 and 2023, with disaster-prone areas experiencing particularly steep increases.”
One frequent argument against climate mitigation policies is that they cost the poor disproportionately; for example, a tax on gasoline has a bigger proportional effect on low-income drivers because a greater portion of their income is spent on fueling their car. But “if you don’t do anything, that has a disproportionate burden on the poor,” Clausing told me. That’s because the costs of dealing with climate change — higher insurance premiums, higher health insurance premiums, higher electric bills for more air conditioning — weigh more heavily on people with lower incomes, she and her co-authors found.
“Poor people may have a harder time and be more likely to be displaced by disasters,” Clausing told me.
The paper’s authors emphasized that their results show the need for climate adaptation as well as emissions-reducing policy, but also that forward-looking adaptation can’t happen if there’s insufficient information. Insufficient information appears to be exactly what some people want. Disputes over climate information have a well known political valence, with federal agencies under the current administration reducing their efforts to collect and publish climate data.
But the private sector has its own reasons not to be completely fulsome with climate-related risk data.
The New York Times reported this weekend, for instance, that the online real estate marketplace Zillow has removed climate risk scores from “more than one million home sale listings,” following complaints from real estate agents.“They’re doing people a disservice,” Clausing told me when I asked her about Zillow’s action.
“Of course, if my home’s on a floodplain, I’m not happy that this information is available to everyone on Zillow,” Clausing said. But the alternative is, “if my home’s in a floodplain, just pretending that that’s the same as if it were in a very safe place.” Which is fine, but it won’t stop your insurance bill from rising.