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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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Current conditions: After a two-inch dusting over the weekend, Virginia is bracing for up to 8 inches of snow • The Bulahdelah bushfire in New South Wales that killed a firefighter on Sunday is flaring up again • The death toll from South and Southeast Asia’s recent floods has crossed 1,750.

President Donald Trump’s Day One executive order directing agencies to stop approving permitting for wind energy projects is illegal, a federal judge ruled Monday evening. In a 47-page ruling against the president in the U.S. District Court for the District of Massachusetts, Judge Patti B. Saris found that the states led by New York who sued the White House had “produced ample evidence demonstrating that they face ongoing or imminent injuries due to the Wind Order,” including project delays that “reduce or defer tax revenue and returns on the State Plaintiffs’ investments in wind energy developments.” The judge vacated the order entirely.
Trump’s “total war on wind” may have shocked the industry with its fury, but the ruling is a sign that momentum may be shifting. Wind developers have gathered unusual allies. As I wrote here in October, big oil companies balked at Trump’s treatment of the wind industry, warning the precedents Republican leaders set would be used by Democrats against fossil fuels in the future. Just last week, as I reported here, the National Petroleum Council advised the Department of Energy to back a national permitting reform proposal that would strip the White House of the power to rescind already-granted licenses.
Back in October, I told you about how the head of the world’s biggest metal trading house warned that the West was getting the critical mineral problem wrong, focusing too much on mining and not enough on refining. Now the Energy Department is making $134 million available to projects that demonstrate commercially viable ways of recovering and refining rare earths from mining waste, old electronics, and other discarded materials, Utility Dive reported. “We have these resources here at home, but years of complacency ceded America’s mining and industrial base to other nations,” Secretary of Energy Chris Wright said in a statement.
If you read yesterday’s newsletter, you may recall that the move comes as the Trump administration signals its plans to take more equity stakes in mining companies, following on the quasi-nationalization spree started over the summer when the U.S. military became the largest shareholder in MP Materials, the country’s only active rare earths miner, in a move Heatmap's Matthew Zeitlin noted made Biden-era officials jealous.
NextEra Energy is planning to develop data centers across the U.S. for Google-owner Alphabet as the utility giant pivots from its status as the nation’s biggest renewable power developer to the natural gas preferred by the Trump administration. The Florida-based company already had a deal to provide 2.5 gigawatts of clean energy capacity to Facebook-owner Meta Platforms, and also plans gas plants for oil giant Exxon Mobil Corp. and gas producer Comstock Resources. Still, NextEra’s stock dropped by more than 3% as investors questioned whether the company’s skills with solar and wind can be translated to gas. “They’ve been top-notch, best-in-class renewable developers,” Morningstar analyst Andy Bischof told Bloomberg. “Now investors have to get their head around whether that can translate to best-in-class gas developer.”
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In October, Google backed construction of the first U.S. commercial installation of a gas plant built from the ground up with carbon capture. The project, which Matthew wrote about here, had the trappings to work where other experiments in carbon capture failed. The location selected for the plant already had an ethanol facility with carbon capture, and access to wells to store the sequestered gas. Now the U.S. could have another plant. In a press release Monday, the industrial giant Babcock and Wilcox announced a deal with an unnamed company to supply carbon capture equipment to an existing U.S. power station. More details are due out in March 2026.
Executives from at least 14 fusion energy startups met with the Energy Department on Monday as the agency looks to spur construction of what could be the world’s first power plants to harness the reaction that powers the sun. The Trump administration has made fusion a priority, issuing a roadmap for commercialization and devoting a new office to the energy source, as I wrote in a breakdown of the agency’s internal reorganization last month. It is, as Heatmap’s Katie Brigham has written, “finally, possibly, almost time for fusion” as billions of dollars flow into startups promising to make the so-called energy source of tomorrow a reality in the near future. “It is now time to make an investment in resources to match the nation’s ambition,” the Fusion Industry Association, the trade group representing the nascent industry, wrote in a press release. “China and other strategic competitors are mobilizing billions to develop the technology and capture the fusion future. The United States has invested in fusion R&D for decades; now is the time to complete the final step to commercialize the technology.” Indeed, as I wrote last month, China has forged an alliance with roughly a dozen countries to work together on fusion, and it’s spending orders of magnitude more cash on the energy source than the U.S.
Founded by a former Google worker, the startup Quilt set out to design chic-looking heat pumps sexy enough to serve as decor. Investors like the pitch. The company closed a $20 million Series B round on Monday, bringing its total fundraising to $64 million. “Our growth demonstrates that when you solve for comfort, design, and efficiency simultaneously, adoption accelerates,” Paul Lambert, chief executive and co-founder of Quilt, said in a statement. “This funding enables us to bring that experience to millions more North American homes.”
Adorable as they are, Japanese kei cars don’t really fit into American driving culture.
It’s easy to feel jaded about America’s car culture when you travel abroad. Visit other countries and you’re likely to see a variety of cool, quirky, and affordable vehicles that aren’t sold in the United States, where bloated and expensive trucks and SUVs dominate.
Even President Trump is not immune from this feeling. He recently visited Japan and, like a study abroad student having a globalist epiphany, seems to have become obsessed with the country’s “kei” cars, the itty-bitty city autos that fill up the congested streets of Tokyo and other urban centers. Upon returning to America, Trump blasted out a social media message that led with, “I have just approved TINY CARS to be built in America,” and continued, “START BUILDING THEM NOW!!!”
He’s right: Kei cars are neat. These pint-sized coupes, hatchbacks, and even micro-vans and trucks are so cute and weird that U.S. car collectors have taken to snatching them up (under the rules that allow 25-year-old cars to be imported to America regardless of whether they meet our standards). And he’s absolutely right that Americans need smaller and more affordable automotive options. Yet it’s far from clear that what works in Japan will work here — or that the auto execs who stood behind Trump last week as he announced a major downgrading of upcoming fuel economy standards are keen to change course and start selling super-cheap economy cars.
Americans want our cars to do everything. This country’s fleet of Honda CR-Vs and Chevy Silverados have plenty of space for school carpools and grocery runs around town, and they’re powerful and safe enough for road-tripping hundreds of miles down the highway. It’s a theme that’s come up repeatedly in our coverage of electric vehicles. EVs are better for cities and suburbs than internal combustion vehicles, full stop. But they may never match the lightning-fast road trip pit stop people have come to expect from their gasoline-powered vehicles, which means they don’t fit cleanly into many Americans’ built-in idea of what a car should be.
This has long been a problem for selling Americans on microcars. We’ve had them before: As recently as a dozen years ago, extra-small autos like the Smart ForTwo and Scion iQ were available here. Those tiny cars made tons of sense in the United States’ truly dense urban areas; I’ve seen them strategically parked in the spaces between homes in San Francisco that are too short for any other car. They made less sense in the more wide-open spaces and sprawling suburbs that make up this country. The majority of Americans who don’t struggle with street parking and saw that they could get much bigger cars for not that much more money weren’t that interested in owning a car that’s only good for local driving.
The same dynamic exists with the idea of bringing kei cars for America. They’re not made to go faster than 40 or 45 miles per hour, and their diminutive size leaves little room for the kind of safety features needed to make them highway-legal here. (Can you imagine driving that tiny car down a freeway filled with 18-wheelers?) Even reaching street legal status is a struggle. While reporting earlier this year on the rise of kei car enthusiasts, The New York Times noted that while some states have moved to legalize mini-cars, it is effectively illegal to register them in New York. (They interviewed someone whose service was to register the cars in Montana for customers who lived elsewhere.)
If the automakers did follow Trump’s directive and stage a tiny car revival, it would be a welcome change for budget-focused Americans. Just a handful of new cars can be had for less than $25,000 in the U.S. today, and drivers are finally beginning to turn against the exorbitant prices of new vehicles and the endless car loans required to finance them. Individuals and communities have turned increasingly to affordable local transportation options like golf carts and e-bikes for simply getting around. Tiny cars could occupy a space between those vehicles and the full-size car market. Kei trucks, which take the pickup back to its utilitarian roots, would be a wonderful option for small businesses that just need bare-bones hauling capacity.
Besides convincing size-obsessed Americans that small is cool, there is a second problem with bringing kei cars to the U.S., which is figuring out how to make little vehicles fit into the American car world. Following Trump’s declaration that America should get Tokyo-style tiny cars ASAP, Transportation Secretary Sean Duffy said “we have cleared the deck” of regulations that would prevent Toyota or anyone else from selling tiny cars here. Yet shortly thereafter, the Department of Transportation clarified that, “As with all vehicles, manufacturers must certify that they meet U.S. Federal Motor Vehicle Safety Standards, including for crashworthiness and passenger protection.”
In other words, Ford and GM can’t just start cranking out microcars that don’t include all the airbags and other protections necessary to meet American crash test and rollover standards (not without a wholesale change to our laws, anyway). As a result, U.S. tiny cars couldn’t be as tiny as Japanese ones. Nor would they be as cheap, which is a crucial issue. Americans might spend $10,000 on a city-only car, but probably wouldn’t spend $20,000 — not when they could just get a plain old Toyota Corolla or a used SUV for that much.
It won’t be easy to convince the car companies to go down this road, either. They moved so aggressively toward crossovers and trucks over the past few decades because Americans would pay a premium for those vehicles, making them far more profitable than economy cars. The margins on each kei car would be much smaller, and since the stateside market for them might be relatively small, this isn’t an alluring business proposition for the automakers. It would be one thing if they could just bring the small cars they’re selling elsewhere and market them in the United States without spending huge sums to redesign them for America. But under current laws, they can’t.
Not to mention the whiplash effect: The Trump administration’s attacks on EVs left the carmakers struggling to rearrange their plans. Ford and Chevy probably aren’t keen to start the years-long process of designing tiny cars to please a president who’ll soon be distracted by something else.
Trump’s Tokyo fantasy is based in a certain reality: Our cars are too big and too expensive. But while kei cars would be fantastic for driving around Boston, D.C., or San Francisco, the rides that America really needs are the reasonably sized vehicles we used to have — the hatchbacks, small trucks, and other vehicles that used to be common on our roads before the Ford F-150 and Toyota RAV4 ate the American car market. A kei truck might be too minimalist for mainstream U.S. drivers, but how about a hybrid revival of the El Camino, or a truck like the upcoming Slate EV whose dimensions reflect what a compact truck used to be? Now that I could see.
Current conditions: In the Pacific Northwest, parts of the Olympics and Cascades are set for two feet of rain over the next two weeks • Australian firefighters are battling blazes in Victoria, New South Wales, and Tasmania • Temperatures plunged below freezing in New York City.
The U.S. military is taking on a new role in the Trump administration’s investment strategy, with the Pentagon setting off a wave of quasi-nationalization deals that have seen the Department of Defense taking equity stakes in critical mineral projects. Now the military’s in-house lender, the Office of Strategic Capital, is making nuclear power a “strategic technology.” That’s according to the latest draft, published Sunday, of the National Defense Authorization Act making its way through Congress. The bill also gives the lender new authorities to charge and collect fees, hire specialized help, and insulate its loan agreements from legal challenges. The newly beefed up office could give the Trump administration a new tool for adding to its growing list of investments, as I previously wrote here.

The “Make America Healthy Again” wing of President Donald Trump’s political coalition is urging the White House to fire Environmental Protection Agency Administrator Lee Zeldin over his decisions to deregulate harmful chemicals. In a petition circulated online, several prominent activists aligned with the administration’s health secretary, Robert F. Kennedy, Jr., accused Zeldin of having “prioritized the interests of chemical corporations over the well-being of American families and children.” As of early Friday afternoon, The New York Times reported, more than 2,800 people had signed the petition. By Sunday afternoon, the figure was nearly 6,000. The organizers behind the petition include Vani Hari, a MAHA influencer known as the Food Babe to her 2.3 million Instagram followers, and Alex Clark, a Turning Point USA activist who hosts what the Times called “a health and wellness podcast popular among conservatives.”
The intraparty conflict comes as one of Zeldin’s more controversial rollbacks of a Biden-era pollution rule, a regulation that curbs public exposure to soot, is facing significant legal challenges. A lawyer told E&E News the EPA’s case is a “Hail Mary pass.”
The Democratic Republic of the Congo, by far the world’s largest source of cobalt, has slapped new export restrictions on the bluish metal needed for batteries and other modern electronics. As much as 80% of the global supply of cobalt comes from the DRC, where mines are notorious for poor working conditions, including slavery and child labor. Under new rules for cobalt exporters spelled out in a government document Reuters obtained, miners would need to pre-pay a 10% royalty within 48 hours of receiving an invoice and secure a compliance certificate. The rules come a month after Kinshasa ended a months-long export ban by implementing a quota system aimed at boosting state revenues and tightening oversight over the nation’s fast-growing mining industry. The establishment of the rules could signal increased exports again, but also suggests that business conditions are changing in the country in ways that could further complicate mining.
With Chinese companies controlling the vast majority of the DRC’s cobalt mines, the U.S. is looking to onshore more of the supply chain for the critical mineral. Among the federal investments is one I profiled for Heatmap: an Ohio startup promising to refine cobalt and other metals with a novel processing method. That company, Xerion, received funding from the Defense Logistics Agency, yet another funding office housed under the U.S. military.
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Last month, I told you about China’s outreach to the rest of the world, including Western European countries, to work together on nuclear fusion. The U.S. cut off cooperation with China on traditional atomic energy back in 2017. But France is taking a different approach. During a state visit to Beijing last week, French President Emmanuel Macron “failed to win concessions” from Chinese leader Xi Jinping, France24 noted. But Paris and Beijing agreed to a new “pragmatic cooperation” deal on nuclear power. France’s state-owned utility giant EDF already built a pair of its leading reactors in China.
The U.S. has steadily pushed the French out of deals within the democratic world. Washington famously muscled in on a submarine deal, persuading Australia to drop its deal with France and go instead with American nuclear vessels. Around the same time, Poland — by far the biggest country in Europe to attempt to build its first nuclear power plant — gave the American nuclear company Westinghouse the contract in a loss for France’s EDF. Working with China, which is building more reactors at a faster rate than any other country, could give France a leg up over the U.S. in the race to design and deploy new reactors.
It’s not just the U.S. backpedaling on climate pledges and extending operations of coal plants set to shut down. In smog-choked Indonesia, which ranks seventh in the world for emissions, a coal-fired plant that Bloomberg described as a “flagship” for the country’s phaseout of coal has, rather than shut down early, applied to stay open longer.
Nor is the problem reserved to countries with right-wing governance. The new energy plan Canadian Prime Minister Mark Carney, a liberal, is pursuing in a bid to leverage the country’s fossil fuel riches over an increasingly pushy Trump means there’s “no way” Ottawa can meet its climate goals. As I wrote last week, the Carney government is considering a new pipeline from Alberta to the West Coast to increase oil and gas sales to Asia.
There’s a new sheriff in town in the state at the center of the data center boom. Virginia’s lieutenant governor-elect Ghazala Hasmi said Thursday that the incoming administration would work to shift policy toward having data centers “pay their fair share” by supplying their own energy and paying to put more clean power on the grid, Utility Dive reported. “We have the tools today. We’ve got the skilled and talented workforce. We have a policy roadmap as well, and what we need now is the political will,” Hashmi said. “There is new energy in this legislature, and with it a real opportunity to build new energy right here in the Commonwealth.”