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The Inflation Reduction Act is probably protected from SCOTUS. New environmental regulations? Not so much.

Climate change is a huge danger to countless lives. All indications are the Biden administration takes the threat seriously. The Inflation Reduction Act, in particular, demonstrates that climate change has become a top priority for the Democratic coalition. But with Republicans in control of the House of Representatives, further sweeping legislation is off the table for at least two years.
The good news is Congress has already given the executive branch ample authority to address climate change. The bad news is it's highly likely that the Republican-controlled Supreme Court will stop it from using this authority. The Republican super-majority on the Court is coming for climate regulation.
The crucial harbinger of what is likely to come is the 2022 case West Virginia v. EPA. On one level, the decision’s effects were narrow, because the program it held to be unconstitutional (Obama’s Clean Power Plan) had never gone into effect. But the decision is ominous because of the grounds on which the Court struck down the CPP.
In an opinion written by Chief Justice Roberts and joined by other conservative justices, the Court held that the program ran afoul of the recently-invented “major questions” doctrine.” According to Roberts, the doctrine means when considering some “extraordinary cases” with heightened “economic and political significance,” the Court should “hesitate” and require that the administrative agency point to “clear congressional authorization” for its actions. Roberts asserted that the Environmental Protection Agency had failed to show a clear authorization, and hence the CPP exceeded the EPA’s authority.
The decision reflects an implausibly narrow view of the EPA’s authority. Section 111 of the Clean Air Act authorizes the EPA to regulate pollutants that “may reasonably be anticipated to endanger public health or welfare.” It also authorized the EPA to identify the “best system of emissions reduction” for power plants. The Clean Power Plan fell squarely within the statutory scheme. Greenhouse gases that accelerate climate change would seem to a paradigmatic example of what Congress wanted the EPA to regulate – carbon emissions are pollutants, and there can be no serious question that climate change poses a major threat to public welfare and safety. And the CPP’s measures to encourage power companies to either use cleaner sources or participate in a cap-and-trade program fall within its authority to select the best system for emissions reduction.
The majority’s holding that the CPP falling within the terms established by the statute was insufficient because a problem as big as climate change requires more specific authorization is perverse. As Justice Kagan observed in her dissent, a “key reason Congress makes broad delegations like Section 111 is so an agency can respond, appropriately and commensurately, to new and big problems.” Congress did not think it could anticipate every environmental problem that could be caused by air pollution, which is precisely why it delegated the authority to address unexpected problems to the EPA.
Indeed, environmental regulation is a classic example of why Congress’s authority to delegate should be deferred to rather than subjected to ad hoc rules created by the federal judiciary. Environmental science is not a static field. There are frequently new findings about the effects of various environmental hazards and new technologies for addressing these hazards in an economically feasible way. Even a highly functioning and efficient legislature filled with experts in environmental science and economics would not be able to issue specific regulations reflecting new evidence and technological developments, and the actually existing, frequently gridlocked Congress meets neither of these conditions. This is why the longstanding practice is for Congress to set the goals and for the EPA to issue regulations commensurate with these goals, subject to oversight by elected officials in the legislative and executive branches.
The next major legal battleground over environmental regulations is likely to be the new clean air rules being proposed by the EPA. These proposals are also an excellent illustration of how the process should work. The federal agency charged by Congress with helping to preserve the environment is taking advantage of the latest scientific discoveries to update rules for the first time in more than a decade in order to protect Americans from being exposed to dangerous pollutants. A legal universe in which any new set of rules triggers litigation in front of hostile federal judges frustrates the goals Congress sought to accomplish by establishing the EPA.
Indeed, the reason Republican judges are targeting this system is not because it doesn’t work, but because it does. When it invokes newly-minted rules like the “major questions” doctrine, the Court claims to be upholding the prerogatives of Congress. But it is easy to see that this is disingenuous ruse. As University of Texas Law professor Steve Vladeck points out, “*no* Congress will ever have the *capacity* to regulate across every issue with the specificity that "major questions" requires. It's not pro-democracy; it's anti-regulation.” West Virginia v. EPA does not reflect a desire to uphold the authority of Congress; it reflects the Republican Party’s hostility to environmental regulation.
It is true that other approaches taken by Congress may be less likely to face judicial hostility. The major climate provisions in the Inflation Reduction Act generally rely on direct federal spending, which is less likely to provoke a negative response from the judiciary. It would be premature to conclude there will be no effective legal challenges to these climate provisions, but generally clean energy spending is less likely to be struck down than new regulations. But while if this situation holds it gives Congress some leeway to establish some climate goals, it would not be sufficient. Protecting the environment and combating climate change requires the regulation of polluters, not just spending on clean energy.
And this is what makes West Virginia v. EPA such an ominous precedent. Even if a Democratic Congress and Democratic president of the future could overcome a Senate tilted in favor of fossil fuel-producing states and pass an updated Clean Air Act that more clearly authorized the EPA to regulate carbon emissions, it is not clear how they could overcome the obstacle of a Supreme Court that is both hostile to environmental regulation and willing to engage in bad faith readings of statutes to get its way. When Congress updated the Voting Rights Act to reject the narrow interpretation of its anti-discrimination provisions advanced by the Reagan administration, the Roberts Court just willfully misread the statute as if Reagan (and his lead Department of Justice spokesperson on the issue, John Roberts) had actually won the initial fight.
As long as conservatives control the Supreme Court, environmental regulators won't be allowed to do their jobs.
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Atomic Canyon is set to announce the deal with the International Atomic Energy Agency.
Two years ago, Trey Lauderdale asked not what nuclear power could do for artificial intelligence, but what artificial intelligence could do for nuclear power.
The value of atomic power stations to provide the constant, zero-carbon electricity many data centers demand was well understood. What large language models could do to make building and operating reactors easier was less obvious. His startup, Atomic Canyon, made a first attempt at answering that by creating a program that could make the mountains of paper documents at the Diablo Canyon nuclear plant, California’s only remaining station, searchable. But Lauderdale was thinking bigger.
In September, Atomic Canyon inked a deal with the Idaho National Laboratory to start devising industry standards to test the capacity of AI software for nuclear projects, in much the same way each update to ChatGPT or Perplexity is benchmarked by the program’s ability to complete bar exams or medical tests. Now, the company’s effort is going global.
On Wednesday, Atomic Canyon is set to announce a partnership with the United Nations International Atomic Energy Agency to begin cataloging the United Nations nuclear watchdog’s data and laying the groundwork for global standards of how AI software can be used in the industry.
“We’re going to start building proof of concepts and models together, and we’re going to build a framework of what the opportunities and use cases are for AI,” Lauderdale, Atomic Canyon’s chief executive, told me on a call from his hotel room in Vienna, Austria, where the IAEA is headquartered.
The memorandum of understanding between the company and the UN agency is at an early stage, so it’s as yet unclear what international standards or guidelines could look like.
In the U.S., Atomic Canyon began making inroads earlier this year with a project backed by the Institute of Nuclear Power Operators, the Nuclear Energy Institute, and the Electric Power Research Institute to create a virtual assistant for nuclear workers.
Atomic Canyon isn’t the only company applying AI to nuclear power. Last month, nuclear giant Westinghouse unveiled new software it’s designing with Google to calculate ways to bring down the cost of key components in reactors by millions of dollars. The Nuclear Company, a startup developer that’s aiming to build fleets of reactors based on existing designs, announced a deal with the software behemoth Palantir to craft the software equivalent of what the companies described as an “Iron Man suit,” able to swiftly pull up regulatory and blueprint details for the engineers tasked with building new atomic power stations.
Lauderdale doesn’t see that as competition.
“All of that, I view as complementary,” he said.
“There is so much wood to chop in the nuclear power space, the amount of work from an administrative perspective regarding every inch of the nuclear supply chain, from how we design reactors to how we license reactors, how we regulate to how we do environmental reviews, how we construct them to how we maintain,” he added. “Every aspect of the nuclear power life cycle is going to be transformed. There’s no way one company alone could come in and say, we have a magical approach. We’re going to need multiple players.”
That Atomic Canyon is making inroads at the IAEA has the potential to significantly broaden the company’s reach. Unlike other energy sources, nuclear power is uniquely subject to international oversight as part of global efforts to prevent civilian atomic energy from bleeding over into weapons production.
The IAEA’s bylaws award particular agenda-setting powers to whatever country has the largest fleet of nuclear reactors. In the nearly seven decades since the agency’s founding, that nation has been the U.S. As such, the 30 other countries with nuclear power have largely aligned their regulations and approaches to the ones standardized in Washington. When the U.S. artificially capped the enrichment levels of traditional reactor fuel at 5%, for example, the rest of the world followed.
That could soon change, however, as China’s breakneck deployment of new reactors looks poised to vault the country ahead of the U.S. sometime in the next decade. It wouldn’t just be a symbolic milestone. China’s emergence as the world’s preeminent nuclear-powered nation would likely come with Beijing’s increased influence over other countries’ atomic energy programs. As it is, China is preparing to start exporting its reactors overseas.
The role electricity demand from the data centers powering the AI boom has played in spurring calls for new reactors is undeniable. But if AI turns out to have as big an impact on nuclear operations as Lauderdale predicts, an American company helping to establish the global guidelines could help cement U.S. influence over a potentially major new factor in how the industry works for years, if not decades to come.
Current conditions: The Northeastern U.S. is bracing for 6 inches of snow, including potential showers in New York City today • A broad swath of the Mountain West, from Montana through Colorado down to New Mexico, is expecting up to six inches of snow • After routinely breaking temperature records for the past three years, Guyana shattered its December high with thermometers crossing 92 degrees Fahrenheit.
The Department of Energy gave a combined $800 million to two projects to build what could be the United States’ first commercial small modular reactors. The first $400 million went to the federally owned Tennessee Valley Authority to finance construction of the country’s first BWRX-300. The project, which Heatmap’s Matthew Zeitlin called the TVA’s “big swing at small nuclear,” is meant to follow on the debut deployment of GE-Hitachi Nuclear Energy’s 300-megawatt SMR at the Darlington nuclear plant in Ontario. The second $400 million grant backed Holtec International’s plan to expand the Palisades nuclear plant in Michigan where it’s currently working to restart with the company’s own 300-megawatt reactor. The funding came from a pot of money earmarked for third-generation reactors, the type that hew closely to the large light water reactors that make up nearly all the U.S. fleet of 94 commercial nuclear reactors. While their similarities with existing plants offer some benefits, the Trump administration has also heavily invested in incentives to spur construction of fourth-generation reactors that use coolants other than water. “Advanced light-water SMRs will give our nation the reliable, round-the-clock power we need to fuel the President’s manufacturing boom, support data centers and AI growth, and reinforce a stronger, more secure electric grid,” Secretary of Energy Chris Wright said in a statement. “These awards ensure we can deploy these reactors as soon as possible.”
You know who also wants to see more investment in SMRs? Arizona senator and rumored Democratic presidential hopeful Ruben Gallego, who released an energy plan Wednesday calling on the Energy Department to ease the “regulatory, scaling, and supply chain challenges” new reactors still face.
Since he first emerged on the political scene a decade ago, President Donald Trump has made the proverbial forgotten coal miner a central theme of his anti-establishment campaigns, vowing to correct for urbanite elites’ neglect by putting workers’ concerns at the forefront. Yet his administration is now considering overhauling black lung protections that miners lobbied federal agencies to enact and enforce. Secretary of Labor Lori Chavez-DeRemer will “reconsider and seek comments” on parts of the Biden-era silica rule that mining companies and trade groups are challenging in court, the agency told E&E News. It’s unclear how the Trump administration may seek to alter the regulation. But the rule, finalized last year, reduced exposure limits for miners to airborne silica crystals that lodge deep inside lung tissue to 50 micrograms from the previous 100 microgram limit. The rule also required companies to provide expanded medical tests to workers. Dozens of miners and medical advocates protested outside the agency’s headquarters in Washington in October to request that the rule, expected to prevent more than 1,000 deaths and 3,700 cases of black lung per year, be saved.
Rolling back some of the protections would be just the latest effort to gut Biden-era policy. On Wednesday, the White House invited automotive executives to attend what’s expected to be an announcement to shred fuel-efficiency standards for new vehicles, The New York Times reported late on Tuesday.
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The average American spent a combined 11 hours without electricity last year as a result of extreme weather, worse outages than during any previous year going back a decade. That’s according to the latest analysis by the U.S. Energy Information Administration. Blackouts attributed to major events averaged nearly nine hours in 2025, compared to an average of roughly four hours per year in 2014 through 2023. Major hurricanes accounted for 80% of the hours without electricity in 2024.
The latest federal grants may be good news for third-generation SMRs, but one of the leading fourth-generation projects — the Bill Gates-owned TerraPower’s bid to build a molten salt-cooled reactor at a former coal plant in Wyoming — just cleared the final safety hurdle for its construction permit. Calling the approval a “momentous occasion for TerraPower,” CEO Chris Levesque said the “favorable safety evaluation from the U.S. Nuclear Regulatory Commission reflects years of rigorous evaluation, thoughtful collaboration with the NRC, and an unwavering commitment to both safety and innovation.”
TerraPower’s project in Kemmerer, Wyoming, is meant to demonstrate the company’s reactors, which are designed to store power when it’s needed — making them uniquely complementary to grids with large amounts of wind and solar — to avoid the possibility of a meltdown. Still, at a private lunch I attended in October, Gates warned that the U.S. is falling behind China on nuclear power. China is charging ahead on all energy fronts. On Tuesday, Bloomberg reported that the Chinese had started up a domestically-produced gas turbine for the first time as the country seeks to compete with the U.S. on even the fossil fuels American producers dominate.
It’s been a rough year for green hydrogen projects as the high cost of producing the zero-carbon fuel from renewable electricity and water makes finding customers difficult for projects. Blue hydrogen, the version of the fuel made with natural gas equipped with carbon capture equipment, isn’t doing much better. Last month, Exxon Mobil Corp. abandoned plans to build what would have been one of the world’s largest hydrogen production plants in Baytown, Texas. This week, BP withdrew from a blue hydrogen project in England. At issue are strict new standards in the European Union for how much carbon blue hydrogen plants would need to capture to qualify as clean.
You’re not the only one accidentally ingesting loads of microplastics. New research suggests crickets can’t tell the difference between tiny bits of plastics and natural food sources. Evidence shows that crickets can break down microplastics into smaller nanoplastics — which may be even worse in the environment since they’re more easily eaten or absorbed by other lifeforms.
Jesse and Rob take stock of 2025.
2025 has been incredibly eventful for decarbonization — and not necessarily in a good way. The return of Donald Trump, the One Big Beautiful Bill Act, and the rise of data centers and artificial intelligence led to more changes for climate policy and the clean energy sector than we’ve seen in years. Some of those we saw coming. Others we really did not.
On this week’s episode of Shift Key, Rob and Jesse look back at the year’s biggest energy and decarbonization stories and examine what they got right — and what they got wrong. What’s been most surprising about the Trump administration? Why didn’t the Inflation Reduction Act’s policies help prevent the law’s partial repeal? And why have AI and the data center boom become a much bigger driver of power growth than we once thought?
Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
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Here is an excerpt from our conversation:
Jesse Jenkins: I think what I’m saying on the organizing side is that all of the organizing and comms effort was going in, as you pointed out, to a base-building and turnout strategy, not a constituency-expanding, coalition-building strategy, right? The effort was to go deep, not wide.
I think that was the fundamental mistake because there wasn’t a lot of depth there. There wasn’t this big, untapped pool of youth voters waiting to be turned out. And it meant we put basically no effort into expanding the broad set of constituencies that, for various ideological backgrounds and various motivations, could have all agreed that hey, bringing manufacturing jobs back to America finally after 20 years of politicians talking about it is maybe a good thing we want to sustain. Hey, lowering energy prices by building new energy supplies at a time when demand is growing, that’s a good idea, maybe we should sustain that, right? Creating tax bases in rural areas through investment in solar farms and wind farms — maybe that’s a good thing we should sustain.
Politics isn’t about getting everybody to agree on motivation, right? It’s about getting people to agree on what we’re going to do as a body politic. And unfortunately, that’s what I guess I’m getting at by this hyperpartisan, ideologically-driven world is, now it is all about getting everybody to agree on motivations, and —
Robinson Meyer: That’s what I was going to say. I actually think it’s —
Jenkins: And that’s just a terrible way to make policy. And I guess it makes this all that much harder.
Meyer: I think for me, I fear we’ve run the climate base experiment so well now that people have gotten this message, and people are starting to understand these policies in terms of energy affordability or clean energy policy. And that means lots of good things for clean energy. I think people should keep making the argument because it seems to me to be true that, for instance, the One Big Beautiful Bill Act’s termination of the wind and solar tax credits is going to mean bad things for American electricity customers. It’s going to raise rates.
But I do think that we should take the full lesson of the IRA experience and say, look, if people care about affordability and you tell them you’re working for affordability, you actually do need to put affordability at the center of your policies. And you need to be willing to understand that there is a tradeoff between affordability and emissions, but unfortunately, the electorate might care about affordability.
Mentioned:
From the Shift Key archive: A Skeptic’s Take on AI and Energy Growth, with Jonathan Koomey
The R2 Is the Rivian That Matters
Ford, Hyundai US sales down slightly in November as EVs drag
Jesse’s upshift; Rob’s sorta upshift.
Music for Shift Key is by Adam Kromelow.