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The founder of Zero Emissions Northwest talks about furloughing his staff — and about the farmers he serves, who are also paying a price.

As President Donald Trump has thrown funding for a broad swath of energy-related federal programs into disarray, Heatmap has been tracking the tangible impacts. On Friday I got the chance to talk with David Funk, founder and president of Zero Emissions Northwest, who had to furlough his three employees this week after Trump’s executive order “Unleashing American Energy” paused the disbursement of funds from the Inflation Reduction Act and the Bipartisan Infrastructure Law for up to 90 days.
ZEN’s staff — and the rural Pacific northwest farmers and small business owners that it serves — rely on grants from the Department of Agriculture’s Rural Energy for America Program. As Funk explained in a LinkedIn post on Thursday, the organization has secured 67 grants in its 15 months of operation, each one representing a specific renewable energy- or energy efficiency-related project for a rural customer — think solar installations, heat pumps, better refrigeration, or even agricultural spray drones. But Funk told me that the majority of these projects have yet to be completed, and now their future is in question.
“I do think that we are a canary in a coal mine right now, and we are a leading indicator of impacts that are going to be much larger than what we’re seeing with our program and our company,” Funk told me.
I asked Funk about the work ZEN does, the confusion around learning that its funding was affected, and how he and the customers he serves have responded. Our conversation has been edited for length and clarity.
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What led you to start Zero Emissions Northwest?
I’ve been in energy for coming up on two decades, so I’ve got experience in the space. Then the second thing that happened was I married a farmer’s daughter outside of Spokane — so a 10,000-acre wheat farm — and that got me a lot closer to agriculture than I had ever been. And the last thing, about four years ago, I looked at my father in law’s shop and said, there’s got to be a grant for a farmer to put solar on their shop. I found the Rural Energy for America Program, wrote him a grant, successfully won it, and then about six of his neighbors came by and said, “Hey, how’d you get him money? I want money to go and improve my farm.” So then I was the most experienced person in eastern Washington. And the USDA launched a contract called the Technical Assistance contract, which we won in Idaho and Washington. And that's when I quit my job and started ZEN.
In rough numbers, our projects have won about $4 million worth of grant support, and that $4 million worth of grant support is matched by private capital. And then those projects are going to save $20 million over their useful life. So call it $30 million of total investment in rural communities, because the money saved on these farms doesn’t go to anything other than fertilizer for next year’s crop, and seed, wheat, and maintenance and mechanics. All of this gets reinvested in making that farm better or making that business better.
How did you learn that ZEN would be impacted by Trump’s executive order?
We talked to people in the government, and they have repeatedly told us that obligated grants have never been removed. So we were operating on the understanding that once a project is obligated, we can then start working and helping that farmer execute on that project. So Trump takes office, we’re still heads down doing what we’re doing — and we do have this belief that the work that we’re doing is exactly the work that Trump wants to see.
We get paid roughly about four times a year, so basically a quarterly invoice. So we haven’t been paid since October. We submitted an invoice in early January for our normal operating procedures, and the USDA processed that in the first week of the Trump administration, and said, “Cool. They’ve done everything, press pay,” and it didn’t go through. We were told verbally that there were back-end restrictions.
We thought it was all tied to this OMB thing. On Tuesday night, [the OMB memo] was blocked, and then on Wednesday, it was rescinded. And all of that’s happening in real time with everybody in the country — not just us citizens, but employees as well. Bureaucrats going, we’re learning about this by tweet, too! And then on Wednesday, we learned in real time with our partners that [the pause in funding] was actually from an executive order, not from the OMB memo. We made the decision that day to furlough our employees. If this goes for 90 days, it’ll be six months of us not getting paid on our largest source of revenue.
Have the farmers and small businesses that you work with had to halt their in-process projects?
It varies for each project. We have a handful of solar projects that are up, and we’re just waiting on a utility interconnection. So those projects we’re finishing. We’ve got equipment like new washing machines en route to a rural laundromat. That’s going to still happen, because he’s already bought them, but his second invoice is going to become due when those show up on site. So he doesn’t really know what’s going on and how to pause that. But if you haven’t started on your project, we’re advising people to not take on more risk by spending money and [instead] just pausing [their projects].
I know it’s only been a few days, but what efforts have you made thus far to get in touch with the federal government?
I’ve got a long list of people that we’re trying to get in touch with. I’ve told all of our customers — many of whom are in the GOP in eastern Washington and northern Idaho — to call their representatives, as well as if they have Twitter, tweet at Donald Trump. So we’re trying to empower our customers to really advocate for their projects, and that’s our main focus.
I’m sure a majority of our customers voted for Donald Trump and voted for the GOP representatives, and we just want them to really explain how this is damaging their business and their farm.
Given that many of your customers support President Trump, what has their reaction to this funding freeze been like?
Everybody expected that funding would continue. That was the message that we were getting from the USDA — the obligated funds have been obligated, the government has signed a contract. So everybody was surprised about that. But I’ll be honest, their reactions are mixed. Some farmers are furious. They have spent this money. They have taken on a risk. They did so with the expectation that the government would honor their contract. So that’s one category. We have another category of farmer that kind of lumps this into weather — things they can’t control. There’s much more understanding if you did vote for Donald Trump. We have had a farmer say, “Maybe they’ll find some waste and it’ll filter through, and we’ll eventually get paid. We can’t control that, but this might be a good thing for our country.” To which I replied, I want the filter first, not second!
But nobody thinks that their project doesn’t fit this mold of unleashing American energy. Nobody is really doubting that they might eventually get paid, because this is aligned with what everybody wants. We’re helping farmers take control of their costs, generate onsite power, or conserve energy through upgrades that really benefit their bottom line and really improve their own farm. We’re helping them reinvest in themselves through the process. We prioritize Made in America equipment wherever possible. We want to see these tax dollars and these incentives stay in the country. So we’ve actually never had a farmer choose to go with a non-Made in America solar system.
Even if this funding pause ends soon, how do you think about the future of your organization given President Trump’s apparent antipathy toward renewable energy and energy efficiency projects — or at least language that highlights any sustainability-related benefits?
If we’re going to go and apply for more contracts to the USDA, one of my big concerns right now is if we’re talking about [renewable energy and energy efficiency], are we going to get blacklisted from doing the work that we do in rural Washington? We have always been, with our customer base, really focused on finance, cost savings, practicality — and then all of the decarbonization benefits of this stuff is very secondary for all of our projects.
When I named the company, all of those things were also in question, right? I called a farmer and said, “Hi, it’s David Funk from Zero Emissions Northwest.” And they said, “What? You don’t fart?” And he hung up on me. We think about, how are we being viewed by our customers? And with the politicalization of language, are we losing out on a market segment that we could be helping, just because somebody looks at our name and says, well, I’m not gonna work with them? It’s an active discussion always, how we present ourselves on paper.
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Just as demand for batteries is intensifying.
The energy impacts of the continued crisis in the Persian Gulf are obvious. Countries that rely on the natural gas and oil from the region are dealing with higher prices, and in some cases are trying to tamp down their demand for fuel and electricity to keep prices under control, not to mention maintain basic energy availability.
But it’s not just gas-fired power plants and internal combustion engines that are feeling the pinch.
The consequences of the effective closure of the Strait of Hormuz go well beyond the set of energy commodities typically associated with the Persian Gulf, including a vast array of minerals and petrochemicals, including many necessary to produce clean energy. We’ve already covered aluminum, a key component of solar panels, cars, and batteries, which requires so much energy for processing that almost 10% of it is produced in the Middle East, where fuel is abundant.
Now another chemical essential to the battery supply chain is seeing price hikes and supply reductions: sulfuric acid.
Sulfuric acid is used in refining and processing several metals and minerals key to the energy transition, including copper, cobalt, nickel, and lithium. Copper is used throughout EVs and other clean technologies, while nickel and cobalt are used in cathodes in lithium-ion batteries — which, of course, also contain lithium. Shortages or higher prices of sulfuric acid could lead to shortages or higher prices for batteries and electric vehicles, just as consumers flock to them to help mitigate the impacts of rising fossil fuel costs.
Sulfur is a byproduct of oil and natural gas refining, hence about half of seaborne sulfur comes from the Middle East, according to Argus Media, but only a handful of sulfur-bearing vessels have transited the Strait of Hormuz since the war began. In response to the disruption, China, the world’s top exporter of sulfuric acid, began restricting shipments abroad, according to S&P.
Sulfuric acid “is an irreplaceable input in the manufacture of renewable energy materials, such as silicon wafers in solar panels; the nickel, cobalt, and rare earths in wind turbine magnets and electric vehicle (EV) motors; and the copper wiring in every grid connection and transformer,” wrote Atlantic Council fellow Alvin Camba in an analysis for the think tank.
“Most elemental sulfur comes from the Middle East,” Camba told me, “and it goes to places like Indonesia,” where metals are processed to “produce the batteries for a lot of vehicles for companies like Tesla, BYD, and Honda.”
Shortages of sulfuric acid will likely hit Indonesia especially hard. The country produces about 60% of the world’s nickel, but has only about a month’s inventory of sulfur, according to a team of Morgan Stanley analysts. “We believe the energy shock is reverberating and will sustain beyond the reopening of the Strait of Hormuz,” the analysts wrote of China’s export restrictions. “It will keep fuel markets tighter, lift the cost curve for Indonesian nickel, and raise refining margins in Asia. Higher energy prices will show up in food, tech and battery supply chains.”
Already, according to Morgan Stanley, “several” Indonesian nickel producers have reduced their output by at least 10% from last month. In the Democratic Republic of Congo, copper and cobalt miners are reducing their use of chemicals in their operations and considering cutting output.
Battery manufacturers are already seeing higher costs for their materials. The Chinese battery giant (and Tesla supplier) CATL saw its profit margins decline quarter-over-quarter revenue growth due to “cost pressure,” Morningstar analyst Vincent Sun wrote last week in a note to clients — and that’s despite greater sales volumes as consumers attempt to escape fossil fuel-dependency. As sulfuric acid rises in price, the battery companies will also be competing with agribusiness, who use sulfuric acid to produce phosphate fertilizers, Camba told me.
Even Ivanhoe Mines chief executive and metal and mining mega-bull Robert Friedland said in a statement last week, “If the closure of the Straits of Hormuz continues … second-derivative effect will be on global copper production due to the shortage of the world’s most important industrial chemical, sulfuric acid.” Friedland described the market for sulfur and sulfuric acid as “extremely tight.”
That also spells bad news for lithium, the namesake mineral used in EV batteries. Around half of global lithium production comes from spodumene, a hard rock mined largely in Western Australia. Refining that rock requires a “shitload’ of sulfuric acid, Nathaniel Horadam, the founder and president of Full Tilt Strategies, told me, through an energy intensive process known as “acid baking.”
Australian mines were already suffering from high diesel prices and shortages due to the conflict in Iran, according to Argus Media. The high price of sulfuric acid could put a squeeze on margins for lithium refining, which largely occurs in China.
“If their production costs go up, that’s going to be factoring into their market pricing,” Horadam said. “I would expect all those prices to go up in the short to medium term until this stuff kind of settles.”
The other major threat to battery makers specifically, Horadam said, was shortages of petrochemicals like ethylene, which is used in the production of plastics, and polyethylene, a polymer often used in plastic bags.
Ethylene is often made from ethane, a natural gas liquid, or naphtha, a refined petroleum product and production in the Persian Gulf has been severely disrupted by the Hormuz crisis. As of March, Asian petrochemical producers had already reduced their output in anticipation of shortages.
Polyethylene is also a crucial component in lithium-ion batteries, where it’s often used in the “separator,” which physically divides the cathode from the anode. Even the Trump administration has thrown its support behind polyethylene in battery manufacturing A $1.3 billion loan from the Department of Energy’s in-house bank to finance a separator manufacturing facility in Indiana survived the Trump administration’s gutting of that office, with $77 million getting disbursed last September. (Notably, the Trump-era announcement dropped a reference to electric vehicles and instead enumerated separators’ uses in “data centers, energy storage, and consumer electronics.”)
Over 40% of lithium-ion separators are produced in China with the “bulk” of them produced in Asia, according to the DOE, which makes support for domestic production paramount to maintaining international competitiveness and domestic supply chains.
“We’re relying on the Chinese and Japanese to produce all our separators and electrolytes and such,” Horadam said. “This sulfuric stuff is getting all the attention because it’s pretty obvious in terms of visible, salient minerals that are directly impacted, but I wouldn’t sleep on separators and binding agents.”
The opinion covered a host of actions the administration has taken to slow or halt renewables development.
A federal court seems to have struck down a swath of Trump administration moves to paralyze solar and wind permits.
U.S. District Judge Denise Casper on Tuesday enjoined a raft of actions by the Trump administration that delayed federal renewable energy permits, granting a request submitted by regional trade groups. The plaintiffs argued that tactics employed by various executive branch agencies to stall permits violated the Administrative Procedures Act. Casper — an Obama appointee — agreed in a 73-page opinion, asserting that the APA challenge was likely to succeed on the merits.
The ruling is a potentially fatal blow to five key methods the Trump administration has used to stymie federal renewable energy permitting. It appears to strike down the Interior Department memo requiring sign-off from Interior Secretary Doug Burgum on all major approvals, as well as instructions that the Interior and the Army Corps of Engineers prioritize “energy dense” projects in ways likely to benefit fossil fuels. Also struck down: a ban on access to a Fish and Wildlife Service species database and an Interior legal opinion targeting offshore wind leases.
Casper found a litany of reasons the five actions may have violated the Administrative Procedures Act. For example, the memo mandating political reviews was “a significant departure from [Interior] precedent,” and therefore “required a ‘more detailed justification’ than that needed for merely implementing a new policy.” The “energy density” permitting rubric, meanwhile, “conflicts” with federal laws governing federal energy leases so it likely violated the APA, the judge wrote.
What’s next is anyone’s guess. Some cynical readers may wonder whether the Supreme Court will just lift the preliminary injunction at the administration’s request. It’s worth noting Casper had the High Court’s penchant for neutralizing preliminary injunctions in mind, writing in her opinion, “The Court concludes that the scope of this requested injunctive relief is appropriate and consistent with the Supreme Court’s limitations on nationwide injunctions.”
On China’s H2 breakthrough, vehicle-to-grid charging, and USA Rare Earth goes to Brazil
Current conditions: In the Atlantic, Tropical Storm Fernand is heading northward toward Bermuda • In the Pacific, Tropic Storm Juliette is active about 520 miles southwest of Baja California, with winds of up to 65 miles per hour • Temperatures are surging past 100 degrees Fahrenheit in South Korea.
Nearly two weeks ago, Vineyard Wind sued one of its suppliers, GE Vernova, to keep the industrial giant from exiting the offshore wind project off the coast of Nantucket in Massachusetts. Now a U.S. court has ordered GE Vernova to finish the job, saying it would be “fanciful” to imagine a new contractor could complete the installation. GE Vernova had argued that Vineyard Wind — a 50/50 joint venture between the European power giant Avangrid and Copenhagen Infrastructure Partners — owed it $300 million for work already performed. But Vineyard Wind countered that the manufacturer remains on the hook for about $545 million to make up for a catastrophic turbine blade collapse in 2024, according to WBUR. “The project is at a critical phase and the loss of [Vineyard Wind]’s principal contractor would set the project back immeasurably,” the Suffolk County Superior Court Judge Peter Krupp wrote in his decision, repeatedly using the name of GE Vernova’s renewables subsidiary. “To pretend that [Vineyard Wind] could go out and hire one or more contractors to finish the installation and troubleshoot and modify [GE Renewables’] proprietary design without [GE Renewables’] specialized knowledge is fanciful.”
Charlotte DeWald fears the world is sleepwalking into tipping points beyond which the Earth’s natural carbon cycles will render climate change uncontrollable. By the time we realize what it means for global weather and agricultural systems that there’s no sea ice in the Arctic sometime in the 2030s, for example, it may be too late to try anything drastic to buy us more time. Much of the discourse around what to do concerns a specific kind of geoengineering called stratospheric aerosol injections, essentially spraying reflective particles into the sky to block the sun’s heat from permeating the increasingly thick layer of greenhouse gases that prevent that energy from naturally radiating back into space. That’s something DeWald, a former Pacific Northwest National Laboratory researcher and climate scientist by training who specialized in modeling aerosol-cloud interactions, knows all about. But her approach is different, using a technology known as mixed-phase cloud thinning, a process similar to cloud seeding. “The idea is that you could dissipate clouds over the Arctic to release heat from the surface to, for example, increase sea ice extent or thickness or integrity,” she told me. “There’s some early modeling that suggests that it could yield significant cooling over the Arctic Ocean.”
With all that context, you can now appreciate the exclusive bit of news I have for you this morning: DeWald is launching a new nonprofit called the Arctic Stabilization Initiative to “evaluate whether targeted interventions can slow dangerous” warming near the Earth’s northern pole. So far, ASI has raised $6.5 million in philanthropic funding toward a five-year budget goal of $55 million to study whether MCT, as mixed-phase cloud thinning is known, could help save the Arctic. The nonprofit has an advisory board stacked with veteran Arctic scientists and put together a “stage-gated” research plan with offramps in case early modeling suggests MCT won’t work or could cause undue environmental damage. The project also has an eye toward engaging with Indigenous peoples and “will ground all future work in respect for Indigenous sovereignty, before any field-based research activity is pursued.” The statement harkens to Harvard University’s SCoPEx trial, a would-be outdoor experiment in spraying reflective aerosols into the atmosphere over Sweden that ran aground after researchers initially failed to consult local stakeholders and a body representing the Indigenous Saami people in the northern reaches of Nordic nations came out against the testing. (By repeatedly invoking ASI’s nonprofit status, DeWald also seemed to draw a contrast with for-profit stratospheric aerosol injection startup Stardust Solutions, which last year Heatmap’s Robinson Meyer reported had raised $60 million.) “We are continuing to move toward critical planetary thresholds without a viable plan for things like tipping points,” DeWald said. “That was the inflection point for me.”

China just took yet another step closer to energy independence, despite its relatively tiny domestic reserves of oil and gas, kicking off the world’s largest project to blend hydrogen into the natural gas system. As part of the experiment, roughly 100,000 households in the center of the Weifang, a prefecture-level city in eastern Shandong province between Beijing and Shanghai, will receive a blend of up to 10% hydrogen through existing gas pipes. The pilot’s size alone “smashes” the world record, according to Hydrogen Insight. Whether that’s meaningful from a climate perspective depends on how you look at things. A fraction of 1% of China’s hydrogen fuel comes from electrolyzer plants powered by clean renewables or nuclear electricity. But the People’s Republic still produces more green hydrogen than any other nation. Last year, the central government made cleaning up heavy industry with green hydrogen a higher priority — a goal that’s been supercharged by the war in Iran. Therein lies the real biggest motivator now. While China relies on imports for natural gas, swapping out more of that fuel for domestically generated hydrogen allows Beijing to claim the moral high ground on emissions and air pollution — all while becoming more energy independent.
Meanwhile, China’s container ships are the latest sector to experiment with going electric and forgoing the need for costly, dirty bunker fuel. A 10,000-ton fully electric cargo vessel capable of carrying 742 shipping containers just started up operations in China this week, according to a video posted on X by China’s Xinhua News service.
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The ability of electric vehicles to serve as distributed energy resources, charging in times of low demand and discharging back onto the grid when demand peaks, has long been a dream of EV enthusiasts and DER advocates alike. California’s PG&E utility launched a small bi-directional charging program in 2023, allowing owners of Ford F-150 Lightnings to use their trucks as home backup power, and eventually feed energy back onto the grid. The utility added a host of General Motors EVs to the program back in 2025. On Monday, it announced its latest vehicle participant: Tesla’s Cybertruck. The Tesla vehicle will be the first in the program to run on alternating current, which simplifies the equipment necessary and lowers costs for consumers, according to PG&E’s announcement.
In January, I told you about the then-latest company to benefit from President Donald Trump’s dabbling in what you might call state capitalism with American characteristics: USA Rare Earth. The vertically integrated company, which aims to mine rare earths in Texas, took big leaps forward in the past year toward building factories to turn those metals into the magnets needed for modern technologies. For now, however, the company needs ore. On Monday, USA Rare Earth announced plans to buy Brazilian rare earth miner Serra Verde in a deal valued at $2.8 billion in cash and shares. The transaction is expected to be complete by the end of the third quarter of this year. The company pitched the move as a direct challenge to China, which dominates both the processing of rare earths mined at home and abroad. “The world has become too dependent on a single source and it’s high time to break that dependency,” USA Rare Earth CEO Barbara Humpton told CNBC’s “Squawk Box” on Monday.
As if we needed more evidence that the data center backlash is “swallowing American politics,” here’s Heatmap’s Jael Holzman with yet another data point: According to tracking from the Heatmap Pro database, fights against data centers now outnumber fights against wind farms in the U.S. That includes both onshore and offshore wind developments. “Taken together,” Jael wrote, “these numbers describe the tremendous power involved in the data center wars.”