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Politics

It’s Decision Day for the SEC

On the long-awaited climate disclosure rules, El Niño, and Arctic summers

Briefing image.
John Kerry’s Next Move
Heatmap Illustration/Getty Images

Current conditions: Texas’ Smokehouse Creek Fire is now 37% contained • Parts of Oklahoma and Texas could see large hail today • An excessive heat warning is in place for Bangkok where the heat index hit 107 degrees Fahrenheit.

THE TOP FIVE

1. SEC set to vote on corporate climate disclosures

The Securities and Exchange Commission is expected to issue a long-awaited, final rule today on what climate-related disclosures public companies have to make to their investors. The rules will cover a company’s greenhouse gas emissions and its exposure to climate-related risks, like extreme weather or future regulations. The SEC’s initial proposal has been the center of a lobbying firestorm. The most contentious aspect asked companies to disclose emissions indirectly related to their business, known as “scope 3” emissions. As Heatmap’s Emily Pontecorvo explained: “That means a company like Amazon wouldn’t just have to report the emissions from its warehouses and delivery trucks, but also an estimate of the emissions associated with producing and using all the products it sells.”

Lobbying groups pushed back hard on this, and probably won: The SEC is expected to drop requirements to report scope 3 emissions in the final rule. But it is also reportedly going to soften rules for disclosing scope 1 and scope 2 emissions, which are greenhouse gases produced directly by the company through its own operations, and through its electricity use, respectively. “The draft rule now under consideration would compel such disclosures only if companies deem they are material,” Reuters reported.

2. Solar accounted for more than half of new electric generating capacity last year

Solar installations in America hit a record-high last year, according to the U.S. Solar Market Insight 2023 Year in Review. The industry added 32.4 gigawatts of electric generating capacity, which is a 51% increase over 2022. Solar accounted for more than half (53%) of all new electric generating capacity, a first for renewable electricity. “If we stay the course with our federal clean energy policies, total solar deployment will quadruple over the next 10 years,” said SEIA president and CEO Abigail Ross Hopper. The report outlines solar deployment forecasts through 2034 based on different scenarios. Supply chain improvements, lower interest rates, and tax credits could increase installations; supply chain problems and unfavorable economic policies would hurt capacity:

SEIA

3. El Niño is weakening, WMO says

The El Niño weather pattern that has been in place since June of last year peaked in December and is now weakening, the World Meteorological Organization said yesterday. But its warming effects will linger, resulting in above normal temperatures over nearly all land areas through May. “Every month since June 2023 has set a new monthly temperature record – and 2023 was by far the warmest year on record,” said WMO Secretary-General Celeste Saulo. “El Niño has contributed to these record temperatures, but heat-trapping greenhouse gases are unequivocally the main culprit.” She continued: “Ocean surface temperatures in the equatorial Pacific clearly reflect El Niño. But sea surface temperatures in other parts of the globe have been persistently and unusually high for the past 10 months. The January 2024 sea-surface temperature was by far the highest on record for January. This is worrying and can not be explained by El Niño alone.”

4. Study: Arctic could see ice-free summer by 2035

New research published in the journal Nature Reviews Earth & Environment suggests the Arctic could be ice-free during the summer months as soon as 2035 due to planet-warming greenhouse gas emissions. “This would transform the Arctic into a completely different environment, from a white summer Arctic to a blue Arctic,” said Alexandra Jahn, an associate professor of atmospheric and oceanic sciences at the University of Colorado Boulder and a lead author of the research. “So even if ice-free conditions are unavoidable, we still need to keep our emissions as low as possible to avoid prolonged ice-free conditions.” But she added that if, in the future, we are able to remove large amounts of carbon dioxide from the atmosphere and reverse warming, “sea ice will come back within a decade.”

5. Not-so-windy Florida moves to ban offshore wind farms

Florida seems very keen on banning things that don’t yet exist. Earlier this week the state Senate approved a bill making it illegal to manufacture or sell lab-grown meat, a product that is still in early stages of development and pretty hard (though not impossible) to find. Now the state legislature is about to pass HB 1645, a bill prohibiting offshore wind turbines in state waters. Florida doesn’t have very strong offshore winds, and hurricanes pose a big risk to turbines, which explains why the state has not a single operational wind farm – offshore or onshore. And legislators want to keep it that way! Joking aside, the rest of the bill is less benign: It would ban transmission cabling in state waters, weaken regulations on natural gas pipelines, and delete most references to climate change in state law.

THE KICKER

The state of Illinois has the busiest EV chargers in the U.S., with one report finding the chargers are in use 26% of the time.

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Adaptation

The ‘Buffer’ That Can Protect a Town from Wildfires

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

Homes as a wildfire buffer.
Heatmap Illustration/Getty Images

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

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

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Spotlight

How the Tax Bill Is Empowering Anti-Renewables Activists

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

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

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

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

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Hotspots

The Midwest Is Becoming Even Tougher for Solar Projects

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

The United States.
Heatmap Illustration/Getty Images

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

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

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

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