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Senate Majority Leader Chuck Schumer has asked the Federal Energy Regulatory Commission to rewrite transmission rules, signaling a new front in the war over permitting reform.

Senate Majority Leader Chuck Schumer has asked the federal government’s energy regulator to write aggressive new rules that would let America build more long-distance power lines, a move that would accomplish one of Democrats’ most important climate goals.
In a letter sent on Thursday, Schumer asked the Federal Energy Regulatory Commission, a bipartisan panel known as FERC, to “strengthen and finalize” rules governing where power lines can be built and who will pay for them. Those rules will be essential to “[delivering] reliable, affordable, and clean power to Americans,” Schumer wrote.
The letter, which has not been previously reported, suggests that Democrats are tiring of bipartisan negotiations over reforming the country’s environmental-permitting laws and will now seek agency action to secure most of their climate goals.
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The effort to reform how and where America builds new power lines is one of Democrats’ biggest priorities for any permitting-reform bill — and one of the biggest sticking points for Republicans. Long-distance transmission is essential to increasing the power grid’s share of wind and solar power, because they allow for clean electricity to be moved from the windiest, sunniest parts of the country to power-hungry cities and towns.
Building more transmission may also be essential to accomplishing the goals of President Joe Biden’s signature climate law. If America doesn’t double how quickly it builds new power lines, then 80% of the carbon reductions from that law, the Inflation Reduction Act, might be lost, according to a research team at Princeton University.
While Democrats want transmission reform to appear in any permitting bill, Republicans have yet to name specific transmission policies that they would support in a compromise. At the same time, the GOP has insisted on changing America’s bedrock environmental statutes — the Clean Air Act and the Clean Water Act — to benefit fossil fuels projects.
The letter suggests that Schumer believes this is too high a price. Democrats do not need new legislation to hit their most pressing transmission goals, his letter implies, but can instead implement most of their agenda through FERC, which is scheduled to get a Democratic majority at the beginning of next year.
The letter is also clearly meant to establish Schumer’s leverage in ongoing permitting talks.
Experts say that transmission construction is held back for two reasons. First, no rules govern how utilities, companies, and consumers should split costs for new transmission once it’s built. Even if a private developer single-handedly builds a new power line to connect two far-flung areas, electricity markets have no rules about how that developer can recoup their costs.
Second, power lines face an especially onerous permitting process. A new transmission project must generally seek approval from every city, county, and state that it passes through. A new natural-gas pipeline, by comparison, only needs to be approved by FERC.
While the federal government has begun to fix the permitting problem, the cost-allocation problem remains totally unsolved.
The bipartisan infrastructure law, which passed in 2021, gave FERC a “backstop” permitting authority, which means that if a local government blocks a proposed transmission line for more than a year, then FERC can step in and approve it.
FERC is now working on a draft version of the rules governing how it would handle that process. But in the letter, Schumer exhorts the agency to move faster and take a more comprehensive approach.
First, he writes, any FERC rule about transmission must say how project developers and utilities should split up the cost of a new power line. The agency must also define the types of benefits that communities can expect from a new transmission line, which should make it easier to calculate who should pay for what.
This cost-allocation rule must also set up a process to fix another potential problem: what happens if states disagree among themselves on how to divide up costs. “Absent such a path … there will be a significant risk of either projects being stalled due to deadlock, or that states that benefit from a transmission line are incentivized to act as free riders and avoid any costs,” Schumer writes.
Second, Schumer wants FERC to require utilities and state regulators to study multiple scenarios for the future of the electricity grid in order to decide where new transmission lines might be needed. These planning sessions must include at least one scenario in which renewables make up a large share of the grid. And grid planners must also study whether existing power lines — or other energy-transportation technology — can be repurposed to support the grid of the future, Schumer said.
These scenarios should also include stress tests looking at especially hot or cold days, when the power grid will be most under demand and transmission is the most important, Schumer said. Roughly half of the economic value of electricity transmission comes from how the grid performs during just 5 to 10% of the hours in a year, according to a recent study from the Lawrence Berkeley National Laboratory.
Right now, most grid planners do not generally take the changing power mix — including known power-plant retirements — into account when studying the need for new transmission projects, Rob Gramlich, the president of Grid Strategies, an electricity research and consulting firm, told me.
Finally, Schumer instructs FERC that it must quickly publish rules governing its new “backstop” ability to step in and approve new transmission lines. And it must set up an informal process so that developers can begin working with FERC even before the one-year deadline on state and local approval kicks in.
“I think FERC clearly has the authority to do what Senator Schumer is requesting, and has given appropriate notice in its proposal to do probably all of them,” Gramlich said.
Schumer’s requests matter because FERC will soon get its first Democratic majority in years. FERC is governed by a bipartisan, five-person commission; no more than three of its commissioners, who are nominated by the president and confirmed by the Senate, can come from the same party.
But so far, Senator Joe Manchin of West Virginia has blocked Biden’s nominees to FERC, deadlocking FERC with two Democratic commissioners and two Republican commissioners. That deadlock will end in early January 2024, when the Republican James Danly will step down, giving the commission’s two Democrats a working majority.
In essence, Schumer is telling those two Democrats that they should start planning for that majority now. He is also putting Republicans on notice that Democrats do not need legislation to accomplish their permitting goals.
Bipartisan talks over a permitting bill are ongoing. Last week, Representative Garret Graves, a House Republican negotiator on the package, said that he hoped to focus on “how to redesign the grid and transmission in a way that reflects new technologies that are out there.” He did not name a specific transmission policy that Republicans support.
Earlier this year, Biden and House Republicans reached a deal over government spending that also changed some permitting laws, including the National Environmental Policy Act. But that law did not make it any easier to build new power lines.
Read more on FERC:
The Republican Fed Up With Free Markets in Electricity
This article was updated on Monday, July 24, at 12:55 PM ET.
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One of the buzziest climate tech companies in our Insiders Survey is pushing past the “missing middle.”
One of the buzziest climate tech companies of the past year is proving that a mature, hitherto moribund technology — conventional geothermal — still has untapped potential. After a breakthrough year of major discoveries, Zanskar has raised a $115 million Series C round to propel what’s set to be an investment-heavy 2026, as the startup plans to break ground on multiple geothermal power plants in the Western U.S.
“With this funding, we have a six power plant execution plan ahead of us in the next three, four years,” Diego D’Sola, Zanskar’s head of finance, told me. This, he estimates, will generate over $100 million of revenue by the end of the decade, and “unlock a multi-gigawatt pipeline behind that.”
The size of the round puts a number to climate world’s enthusiasm for Zanskar. In Heatmap’s Insider’s Survey, experts identified Zanskar as one of the most promising climate tech startups in operation today.
Zanskar relies on its suite of artificial intelligence tools to locate previously overlooked conventional geothermal resources — that is, naturally occurring reservoirs of hot water and steam. Trained on a combination of exclusive subsurface datasets, modern satellite and remote sensing imagery, and fresh inputs from Zanksar’s own field team, the company’s AI models can pinpoint the most promising sites for exploration and even guide exactly what angle and direction to drill a well from.
Early last year, Zanskar announced that it had successfully revitalized an underperforming geothermal power plant in New Mexico by drilling a new pumped well nearby, which has since become the most productive well of this type in the U.S. That was followed by the identification of a large geothermal resource in northern Nevada, where exploratory wells had been drilled for decades but no development had ever occurred. Just last month, the company revealed a major discovery in western Nevada — a so-called “blind” geothermal system with no visible surface activity such as geysers or hot springs, and no history of exploratory drilling.
“This is a site nobody had ever had on the radar, no prior exploration,” Carl Hoiland, Zanskar’s CEO, told me of this latest discovery, dubbed “Big Blind.” He described it as a tipping point for the industry, which had investors saying, “Okay, this is starting to look more like a trend than just an anomaly.”
Spring Lane Capital led Zanskar’s latest round, which also included Obvious Ventures, Union Square Ventures, and Lowercarbon Capital, among others. Spring Lane aims to fill the oft-bemoaned “missing middle” of climate finance — the stage at which a startup has matured beyond early-stage venture backing but is still considered too risky for more traditional infrastructure investors.
Zanskar now finds itself squarely in that position, needing to finance not just the drills, turbines, and generators for its geothermal plants, but also the requisite permitting and grid interconnection costs. D’Sola told me that he expects the company to close its first project financing this quarter, explaining that its ambitious plans require “north of $600 million in total capital expenditures, the vast majority of which will come from non-dilutive sources or project level financing.”
Unsurprisingly, the company anticipates that data centers will be some of its first customers, with hyperscalers likely working through utilities to secure the clean energy attributes of Zanskar’s grid-connected power. And while the West Coast isn’t the primary locus of today’s data center buildout, Hoiland thinks Zanskar’s clean, firm, low-cost power will help draw the industry toward geothermally rich states such as Utah and Nevada, where it’s focused.
“We see a scenario where the western U.S. is going to have some of the cheapest carbon-free energy, maybe anywhere in the world, but certainly in the United States.” Hoiland told me.
Just how cheap are we talking? Using the levelized cost of energy — which averages the lifetime cost of building and operating a power plant per unit of electricity generated — Zanskar plans to deliver electricity under $45 per megawatt-hour by the end of this decade. For context, the Biden administration set that same cost target for next-generation geothermal systems such as those being pursued by startups like Fervo Energy and Eavor — but projected it wouldn’t be reached 2035.
At this price point, conventional geothermal would be cheaper than natural gas, too. The LCOE for a new combined-cycle natural gas plant in the U.S. typically ranges from $48 to $107 per megawatt-hour.
That opens up a world of possibilities, Hoiland said, with the startup’s’s most optimistic estimates showing that conventional geothermal could potentially supply all future increases in electricity demand. “But really what we’re trying to meet is that firm, carbon-free baseload requirement, which by some estimates needs to be 10% to 30% of the total mix,” Hoiland said. “We have high confidence the resource can meet all of that.”
On New Jersey’s rate freeze, ‘global water bankruptcy,’ and Japan’s nuclear restarts
Current conditions: A major winter storm stretching across a dozen states, from Texas to Delaware, and could hit by midweek • The edge of the Sahara Desert in North Africa is experiencing sandstorms kicked up by colder air heading southward • The Philippines is bracing for a tropical cyclone heading toward northern Luzon.
Mikie Sherrill wasted no time in fulfilling the key pledge that animated her campaign for governor of New Jersey. At her inauguration Tuesday, the Democrat signed a series of executive orders aimed at constraining electricity bills and expanding energy production in the state. One order authorized state utility regulators to freeze rate hikes. Another directed the New Jersey Board of Public Utilities “to open solicitations for new solar and storage power generation, to modernize gas and nuclear generation so we can lower utility costs over the long term.” Now, as Heatmap’s Matthew Zeitlin put it, “all that’s left is the follow-through,” which could prove “trickier than it sounds” due to “strict deadlines to claim tax credits for renewable energy development looming.”
Last month, the environmental news site Public Domain broke a big story: Karen Budd-Falen, the No. 3 official at the Department of the Interior, has extensive financial ties to the controversial Thacker Pass lithium mine in northern Nevada that the Trump administration is pushing to fast track. Now The New York Times is reporting that House Democrats are urging the Interior Department’s inspector general to open an investigation into the multimillion-dollar relationship Budd-Falen’s husband has with the mine’s developer. Frank Falen, her husband, sold water from a family ranch in northern Nevada to the subsidiary of Lithium Americas for $3.5 million in 2019, but the bulk of the money from the sale depended on permit approval for the project. Budd-Falen did not reveal the financial arrangement on any of her four financial disclosures submitted to the federal government when she worked for the Interior Department during President Donald Trump’s first term from 2018 to 2021.
House Republicans, meanwhile, are planning to vote this week to undo Biden-era restrictions on mining near more than a million acres of Minnesota wilderness. “Mining is huge in Minnesota. And all mining helps the school trust fund in Minnesota as well. So it benefits all schools in the state,” Representative Pete Stauber, a Minnesota Republican and the chair of the Natural Resources Subcommittee on Energy and Mineral Resources, said of the rule-killing bill he sponsored. While the vote is expected to draw blowback from environmentalists, E&E News noted that it could also agitate proceduralists who oppose the GOP’s continued “use of the rule-busting Congressional Review Act for actions that have not been traditionally seen as rules.” Still, the move is likely to fuel the dealmaking boom for critical minerals. As Heatmap’s Katie Brigham wrote in September, “everybody wants to invest” in startups promising to mine and refine the metals over which China has a near monopoly.
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A new United Nations report declares that the world has entered an era of “global water bankruptcy,” putting billions of people at risk. In an interview with The Guardian, Kaveh Madani, the report’s lead author, said that while not every basin and country is directly at risk, trade and migration are set to face calamity from water shortages. Upward of 75% of people live in countries classified as water insecure or critically water insecure, and 2 billion people live on land that is sinking as groundwater aquifers collapse. “This report tells an uncomfortable truth: Many critical water systems are already bankrupt,” Madani said. “It’s extremely urgent [because] no one knows exactly when the whole system would collapse.”

The Democratic Republic of the Congo has given the U.S. government a vetted list of mining and processing projects open to American investment. The shortlist, which Mining.com said was delivered to U.S. officials last week, includes manganese, gold, and cassiterite licenses; a copper-cobalt project and a germanium-processing venture; four gold permits; a lithium license; and mines producing cobalt, gold, and tungsten. The potential deals are an outgrowth of the peace agreement Trump brokered between the DRC and Rwanda-backed rebels, and could offer Washington a foothold in a mineral-rich country whose resources China has long dominated. But establishing an American presence in an unstable African country is a risky investment. As I reported for Heatmap back in October, the Denver-based Energy Fuels’ $2 billion mining project in Madagascar was suddenly thrown into chaos when the island nation’s protests resulted in a coup, though the company has said recently it’s still moving forward.
The Tokyo Electric Power Company is delaying the restart of the Kashiwazaki Kariwa nuclear power station in western Japan after an alarm malfunction. The alarm system for the control rods that keep the fission reaction in check failed to sound during a test operation on Tuesday, Tepco said. The world’s largest nuclear plant had been scheduled to restart one of its seven reactors on Tuesday. Fuel loading for the reactor, known as Unit 6, was completed in June. It’s unclear when the restart will now take place.
The delay marks a setback for Prime Minister Sanae Takaichi, who has made restarting the reactors idled after the 2011 Fukushima disaster and expanding the nuclear industry a top priority, as I told you in October. But as I wrote last month in an exclusive about Japan’s would-be national small modular reactor champion, the country has a number of potential avenues to regain its nuclear prowess beyond just reviving its existing fleet.
As a fourth-generation New Yorker, I’m qualified to say something controversial: I love, and often even prefer, Montreal-style bagels. They’re smaller, more efficient, and don’t deliver the same carbohydrate bomb to my gut. Now the best-known Montreal-style bagel place in the five boroughs has found a way to use the energy needed to make their hand-rolled, wood-fired bagels more efficiently, too. Black Seed Bagels’ catering kitchen in northern Brooklyn is now part of a battery pilot program run by David Energy, a New York-based retail energy provider. The startup supplied suitcase-sized batteries for free last August, allowing Black Seed to disconnect from ConEdison’s grid during hours when electricity rates are particularly high. “We’re in the game of nickels and dimes,” Noah Bernamoff, Black Seed’s co-owner, told Canary Media. “So we’re always happy to save the money.” Wise words.
Rob talks through Rhodium Groups’s latest emissions report with climate and energy director Ben King.
America’s estimated greenhouse gas emissions rose by 2.4% last year — which is a big deal since they had been steady or falling in 2023 and 2024. More ominously, U.S. emissions grew faster than our gross domestic product last year, suggesting that the economy got less efficient from a climate pollution perspective.
Is this Trump’s fault? The AI boom’s? Or was it a weird fluke? In this week’s Shift Key episode, Rob talks to Ben King, a climate and energy director at the Rhodium Group, about why U.S. emissions grew and what it says about the underlying structure of the American economy. They talk about the power grid, the natural gas system, and whether industry is going to overtake other emissions drivers as 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. Jesse is off this week.
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Here is an excerpt from our conversation:
Robinson Meyer: At the same time there’s been rising total electrification of the vehicle fleet, there’s also been rising hybrid and plug-in hybrid sales. Do we have a sense of how that breakdown is happening, in terms of reduced carbon intensity of the transportation sector and the light duty fleet?
Ben King: It’s a good question. We haven’t disaggregated the … When I say electric vehicles, I’m talking broadly about both full battery electric, and then plug-in hybrids. And then, I think we say this in paper, but I think there was pretty robust growth for gasoline hybrids as which, you know, relative to just a pure gas car, is better from an emissions perspective.
Meyer: Well, it’s funny because if you care about decarbonization and getting to net zero as soon as possible, you could have to poo poo hybrids. But if you’re actually involved in the game to just keep as much emissions out of the sky as possible, and you’re looking to net those 2% declines every year, hybrids are pretty important because they are basically a drop-in replacement to gasoline car use that burns less gasoline.
King: The other interesting thing that gasoline hybrids does for the sector is it finds interesting unanticipated uses for all this battery manufacturing capacity that we’ve built in the U.S., or that we stand to build. Our forecast for pure EVs — so battery electrics, plug-in hybrids — looks a little worse in the out years because of the tax credits going away, because of the EPA tailpipe regulations going away at the same time that the anticipated demand pull from those policies, plus the advanced manufacturing tax credit — the 45X tax credit — has really been wildly successful in standing up a battery manufacturing industry here in the U.S.
If you want that capacity to be around, one thing that you could do with those batteries is put them into hybrids, right? You might have to retool the line a little bit to accommodate different sizes and stuff, build the expertise, build the workforce, etc., such that when the floodgates open again for electric vehicle adoption, for instance, we’ve got substantial battery manufacturing capacity here domestically.
Mentioned:
Rhodium Group: Preliminary US Greenhouse Gas Emissions Estimates for 2025
Rob on Rhodium’s 2023 emissions report
And here’s Rhodium’s 2024 emissions report
This episode of Shift Key is sponsored by …
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Music for Shift Key is by Adam Kromelow.