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It’s official: Minnesota Governor Tim Walz got the rose.
On Tuesday morning, after days of frenzied speculation that floated names including Governor Josh Shapiro of Pennsylvania, Arizona Senator Mark Kelly, and Governor Andy Beshear of Kentucky, Kamala Harris announced that Walz’s name will be the one to underline hers on the presumptive Democratic presidential ticket.
Many on the climate left will likely be thrilled by the pick: Of all the finalists reportedly in contention for VP, Walz had the most impressive clean energy and environmental accomplishments. An Army veteran and former congressman of a rural, otherwise conservative Minnesota district, Walz has a record of working across party lines to get things accomplished. In 2009, he memorably voted for the doomed cap-and-trade bill and defended his position to tough crowds of Midwestern farmers and ranchers.
Within months of being sworn in as Governor of Minnesota in 2019, Walz set a goal for his state to get its electricity from 100% carbon-free sources by 2050. At the time, only a few other states had similar goals. “Climate change is an existential threat. We must take immediate action,” Walz argued at the time. “If Washington is not going to lead, Minnesota will lead.”
By the time Walz signed actual emissions legislation into law last year, he’d set an even more ambitious timeline — carbon-free electricity by 2040. The bill also streamlined permitting, set a minimum wage for employees constructing large-scale utility projects, and included an environmental justice provision to keep energy from waste incineration plants in frontline communities from counting toward the 2040 goal. Minnesota continued “crushing it on climate action” in the months that followed, with Walz securing a $2 billion budget package that included grid improvements, solar panels on state-owned buildings, an electric-vehicle rebate program, heat pump grants and rebates, a green bank, and more. He also signed a transportation bill to overhaul transit hubs, expand passenger rail service, improve infrastructure, and offer electric bike credits.
And he hasn’t stopped. Earlier this summer, Walz announced a $200 million grant to reduce food-related pollution, including protecting and restoring carbon-absorbing peatlands, improving food waste programs, and replacing gas-powered agricultural machinery with trucks that run on electricity or clean fuel. The state is also considering bills that would reform building codes to improve access to affordable housing — an issue Walz has taken a personal interest in. Walz is also, apparently, a YIMBY on energy permitting.
YIMBYs to the white house!
"We have permitting that takes too long...and prohibits or makes more expensive doing renewable energy projects. I think that same thing applies to housing. We put up barriers to making it more affordable." - Democratic VP Candidate Tim Walz https://t.co/MAiy3Ct5B5 pic.twitter.com/EnswfMw67g
— Jordan Grimes 🚰 (@cafedujord) August 6, 2024
Walz’s canny communication skills have already been much remarked upon, and he’s openly recognized that many on the left struggle with a messaging problem regarding climate change. “The surest way to get people to buy in is to create a job that pays well in their community,” the governor told Time’s Justin Worland. “All of us are going to have to be better about our smart politics, about bringing people in.”
Walz’s record isn’t spotless, though. During his congressional career, he earned a score of just 75% from the League of Conservation Voters. Earlier this summer, a coalition of 16 environmental groups, including the local Sierra Club chapter, called out Walz and his administration for being too soft on regulation, including state agencies’ reliance on farmers voluntarily complying with nitrate pollution limits, the Minnesota Pollution Control Agency’s failure to adequately police air quality violations from a foundry in a low-income neighborhood, and what the group argued was a flawed permitting process for a crude oil pipeline built through wetlands. North Dakota Republicans — including Governor Doug Burgum, who’s been floated for a potential Trump cabinet — have pressured Walz to include carbon capture as a carbon-free energy technology under the state’s emissions law (currently, decisions over CCS and hydrogen are under the purview of Minnesota’s Public Utilities Commission).
There’s also the small matter that Harris and Walz have to actually win to be able to enact any of their climate goals. At least on paper, the math had looked slightly better for Pennsylvania Governor Shapiro, who is an incredibly popular governor in a must-win state. “Minnesota is very unlikely to be the tipping point state — less than a 1% chance,” Nate Silver wrote Tuesday morning, arguing that Shapiro would have been a better pick despite mounting criticism from progressives.
Within hours of the news, though, the climate left had already enthusiastically circled around Walz. In a statement, Evergreen Action Executive Director Lena Moffitt applauded Walz’s “masterclass in how to govern in a way that meaningfully improves people’s lives and sets the state up for a thriving future.” Cassidy DiPaola, the communications director at Fossil Free Media and a spokesperson for the Make Polluters Pay campaign, likewise acknowledged Walz’s progress on green issues, nodding to his “evolution into a climate champion.” She added that Walz has more than proven himself at the state level and that “his ability to connect climate policy to the everyday concerns of Midwestern and rural voters could prove invaluable in building broader support for climate action.”
That, after all, will be the big question. Early voting for the next president of the United States begins in 41 days.
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Hyperscalers might be paying billions to avoid blame for rising electricity prices.
Here is a mystery for you: On Wednesday, the House Energy and Commerce Committee will take up the Ratepayer Protection Act, a bipartisan bill sponsored by Colorado Republican Gabe Evans and Florida Democrat Kathy Castor that seeks to enshrine Trump’s similarly named pledge into law.
Among the bill’s supporters is Kentucky Representative Brett Guthrie, a Republican and the chair of the committee. Guthrie is no opponent of artificial intelligence, saying in a statement praising the bill that “Winning the race to AI dominance is essential to securing America’s future global leadership, and that means expeditiously building the power infrastructure needed to support new technologies, while doing so in a responsible way.” Guthrie did not respond to a request for comment.
Microsoft, one of seven large technology companies that agreed to cover any additional grid infrastructure costs stemming from their data centers under Trump’s original Ratepayer Protection Pledge, supports the bill, describing it as an “important step to help ensure American families are protected from rising electricity costs.” Google, another signatory, generally backs the idea of specialized large load tariffs that allocate network costs back to the hyperscalers.
But … why? After all, these companies are voluntarily putting themselves on the hook for what could be billions of dollars in costs that would typically be socialized to all the customers on the grid.
The Data Center Coalition, a trade group including several hyperscalers, has been more circumspect about the bill. Cy McNeill, the group’s senior director of federal affairs, told me in a statement that the group “is reviewing the details of the Ratepayer Protection Act with our members and looks forward to engaging with policymakers on this important topic.”
Evans, Castor, Guthrie, and and the rest appear to be acting not out of hostility towards the AI industry, but rather from a desire to protect it from public backlash fed by rising electricity prices. Earlier this month, Guthrie co-signed a letter to FBI Director Kash Patel, among others, raising concerns that China had “engaged in a coordinated effort to slow U.S. growth in AI development and the building of infrastructure supporting AI data centers” by fomenting domestic opposition — hardly the interpretation of someone working against the industry.
The explanation, perhaps, lies in the answers to two big questions about the Ratepayer Protection Act:
1. Are data centers responsible for higher electricity prices now, or will they be in the future?
2. And would the approach taken in the law actually work to protect ratepayers?
As to the first question, analysts have come up with a nuanced answer. The electricity cost increases we’ve seen in the last five or so years have been largely driven by expenses associated with the distribution grid, including the poles and wires themselves. In some states, like California, the costs come back to wildfires; in others, like Maine, to storm remediation. Looking backwards to 2019, researchers have not been able to find a regular relationship between load growth and price hikes.
In fact, several states “absorbed large industrial and data center load additions while reducing inflation-adjusted retail prices,” according to researchers at Columbia University’s Center on Global Energy Policy. By contrast, some states with little load growth from industry or data centers, such as Maine or California, have seen prices rise substantially.
Many analysts expect electricity prices to continue rising nationally, and data centers could be a driver going forward as demand hits a grid whose capacity to generate and transmit electricity is increasingly strained. This is likely already happening in the country’s largest electricity market, PJM Interconnection, where the system’s independent market monitor has claimed that current and forecasted data center demand has cost customers over $23 billion from recent capacity auctions.
To get prices to actually fall — or at least grow more slowly —it would require that “low-cost supply is available, existing infrastructure is more fully utilized, and cost allocation ensures that new demand contributes to system efficiency,” the Columbia researchers write. Under business as usual however, prices will likely continue to rise.
On the second question, there is much more cynicism.
Critics of the original Ratepayer Protection Pledge, including Harvard Law School’s Ari Peskoe, pointed out that the actual parties to ratemaking — utilities and state regulators — were not involved in the pledge at all. Already, there are accusations that projects developed by pledge signatories could lead to higher prices. Meta's sprawling planned data center project in Louisiana is responsible for the utility’s plans to buy a Texas natural gas-fired power plant, according to documents filed by regulators reviewed by the Times-Picayune. The $1.8 billion deal could lead to $8 a month in additional costs for typical Louisiana ratepayers.
The Ratepayer Protection Act would go a bit further than the pledge, amending the Public Utility Regulatory Policies Act to “establish a Federal standard relating to the recovery of the full, incremental costs of upgrades that serve large-load customers.” Peskoe, however, described this to me in an email as “largely symbolic” and noted that “Congress may not force state regulators to do anything” under current Supreme Court jurisprudence. “This section of PURPA is basically Congress asking state regulators to please take a look at the ratemaking standard.”
That being said, Peskoe noted that “many states and non-regulated utilities do tend to consider PURPA ratemaking standards,” but that there’s “no enforcement mechanism,” depriving the law of any teeth. “States can reject the ratemaking standards or adopt them in a way that deviates from what Congress may have intended.”
Still, it is likely in the political interest of state regulators to come up with something on large load tariffs, the Cato Institute’s Travis Fisher told me. He recommended that the National Association of Regulatory Utility Commissioners “spearhead an initiative to get every state regulator to sign a ratepayer protection pledge,” if only to insulate themselves from political backlash and maintain their power over retail ratemaking.
But even if states do adopt the cost allocation principle, determining exactly which infrastructure is being installed due to a data center and what serves all users can be tricky.
“Any real-world example of this is going to be quite complicated, and the devil’s always in the details,” Ben Schiffman, a senior technology fellow at the Institute for Progress and a former attorney at the Department of the Interior and the Department of Justice, told me. While it might be possible to conclude that “a given substation is simply only needed for that data center,” he said, “as soon as you start zooming out into the larger, big-ticket investments, it’s quite complicated to attribute the cost to one user or one group of users.”
In summary, the Ratepayer Protection Act will ask state regulators to consider an approach to data center cost allocation that may not capture all of their costs and will likely do little to arrest the fundamental drivers of higher electricity costs. Viewed through this lens, the logic of the coalition supporting both the original Ratepayer Protection Pledge and the beefed-up Ratepayer Protection Act comes into focus.
Electricity prices are likely to continue to rise, and data center construction has powerful interests behind it. The public’s attitude towards data centers is rapidly souring, and no matter how many nuanced PDFs are published on the topic, people continue to blame data centers for higher electricity costs.
And if prices continue to rise, the big data center developers may be able to point to the Ratepayer Protection Act and say “well, it wasn’t me.”
On simplified oil and gas leases, lawsuits over plastic and coal, and a new climate research database
Current conditions: The U.K.’s Met Office issued its second-ever Red Extreme Heat Warning for Wednesday and Thursday • A wildfire near Eureka, Utah forced the town’s evacuation • Flash flood warnings are in effect today for Southern Massachusetts.
Lucid Motors is downsizing, again. The electric vehicle maker is laying off 18% of its staff just a few months after a 12% reduction in force in February, according to Electrek. The company also eliminated a second production shift at its factory in Casa Grande, Arizona. EV sales plummeted in the U.S. after the federal EV tax credit expired in September. While many automakers are canceling new electric vehicle lines in the U.S., Lucid hasn’t axed any plans yet, and will be releasing its first lower-cost EV, the Lucid Cosmos SUV, later this year with a price tag under $50,000. It’s also preparing to launch a robotaxi service later this year in partnership with Uber and the autonomous driving technology company Nuro. According to Lucid’s new CEO, Silvio Napoli, the staff cuts will help “simplify the company, sharpen execution, and position Lucid to become more competitive over time.”

Trump’s environmental deregulation crusade continues. The Interior Department proposed several changes to the rules governing oil and gas leasing on federal lands Monday that would limit public input and cut costs for companies. Under existing rules, which were updated during the Biden administration, companies must maintain a minimum bond of $500,000 for each state where they hold leases to cover the cost of capping oil and gas wells when they are done drilling. Trump’s proposal would reduce the requirement to $25,000, shifting the financial risk of remediation to state taxpayers. The new rules would also shorten public participation periods from 90 days to 10, and get rid of a requirement that companies include plans to minimize methane emissions when they apply for drilling permits.
Red states are going after California, this time for its nation-leading plastic regulations. In 2022, the Golden State passed a law setting plastic waste reduction targets and requiring companies to cover the cost of recycling of their own products. The state aims to cut single-use plastic packaging on products by 25% by 2032. Now, 17 attorneys general from red states have teamed up with the National Association of Wholesaler-Distributors, a trade group, to sue California, arguing that the rules represent an “unprecedented overreach” that will increase the cost of goods throughout the country.
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In the first case of its kind, 10 Australians are suing the government for violating their human rights by failing to limit fossil fuel production. The claimants, each of whom has been personally affected by climate change-fueled extreme weather, brought the case to the United Nations’ Human Rights Committee on Monday. Some of them have lost their homes to wildfires and floods, while others have experienced health impacts from heat waves. The case follows a 2025 ruling by the International Court of Justice that all governments have an obligation to protect people from climate change, citing support for fossil fuel production and consumption as a potential violation of this obligation. While that ruling didn’t have any enforcement power, it teed up the potential for country-level claims like this one in Australia. The country is the second largest exporter of coal in the world and the third largest exporter of liquified natural gas.
The rumors were true. The Trump administration has appointed Travis Kavulla, a former utility regulator and power company executive, to lead the Bonneville Power Administration, a federal agency that sells electricity from the government’s hydroelectric dams in the Pacific Northwest. Kavulla arrives as the agency prepares for a controversial exit from California’s real-time electricity trading market to join a new day-ahead market overseen by the Southwest Power Pool, a regional transmission organization. Environmental groups are urging Kavulla reconsider the decision, arguing that it risks raising energy costs for Northwest ratepayers.
The climate change research and news site Carbon Brief debuted Project Cosmos on Monday, the world’s largest database of research on the warming planet. It includes more than 1.8 million publications and “captures the vast body of human knowledge about climate change that has accumulated over more than a century of academic study.” The architects created a stunning “star” map that visualizes the collection by clustering of fields of study, such as medicine, chemistry, or agriculture. They also identified the 500 most-cited studies and scientists, with French carbon cycle modeler Philippe Ciais earning the top spot.
It sidesteps the questions that doomed the Green New Deal.
Socialists are rising in American cities.
It’s not just Mayor Zohran Mamdani in New York City — though he is the most popular and charismatic example. Janeese Lewis George, a member of the Democratic Socialists of America, just won the Democratic mayoral nomination in Washington, D.C. Nithya Raman, another DSA member, will take on the incumbent Karen Bass in Los Angeles’ mayoral race. And on Tuesday, Democratic primary voters across New York will vote on a handful of Mamdani-backed socialists running for Congress.
What’s driving the popularity of urban socialism? The answer matters for climate policy and, of course, much else. You could argue the trend is downstream of demographics: As liberals have flocked to cities, they have pushed the political climate to the left, and sometimes that can erupt in outliers; New York elects socialists, in this model, for the same reason Tennessee picks libertarians. Or you could claim it’s part of the broader and more global shift of voters turning away from a seemingly dead center to political extremes.
Yet none of these frameworks quite suffices. For one, as New York Times columnist David Wallace-Wells observed recently, New York was actually trending to the GOP before it elected Mamdani. (It had the biggest Republican swing of any state in the 2024 election.) And the rise of urban socialism is now too widespread to be a mere aberration attributable only to local factors. So Wallace-Wells offered his own theory: “It is in cities that voters most routinely encounter, and thereby come to value, public goods,” he wrote.
I want to offer another explanation for why socialism has taken root in local government — and it has to do with the recent history of climate policy in the United States, and what that history revealed. Perhaps it’s my curse to understand all politics through the lens of emissions and energy, but I think it is relevant here: While recent city elections have not been about climate per se, many of today’s rising socialists initially came to their beliefs because of the urgency of decarbonization. Mamdani himself once identified as an “ecosocialist,” and Raman was first elected promising to get L.A. to carbon neutrality. And it was in the era that they made these claims — the era of insurgent left-wing climate politics — that one of the movement’s biggest challenges was revealed.
The story begins in November 2018. After securing her unlikely primary victory against an incumbent Democrat, Representative-elect Alexandria Ocasio-Cortez cemented her national profile by joining an activist group called the Sunrise Movement for a sit-in in Nancy Pelosi’s office and demanding something called a Green New Deal.
What a Green New Deal might entail, exactly, nobody seemed to know. Even the Green New Deal’s supporters called for little more than a select committee to develop a “detailed national, industrial, economic mobilization plan” to phase the country off fossil fuels. But a think tank called New Consensus, led and funded in part by Ocasio-Cortez’s then-chief of staff Saikat Chakrabati, declared that it would flesh out the proposal.
Soon a vision congealed. The phrase “Green New Deal” had long referred to the journalist Thomas Friedman’s broad, patriotic, and vague plan to “revitalize America.” New Consensus’ website made it clear that their scheme, too, aimed for national rejuvenation: A Green New Deal would be a galvanizing industrial strategy that would decarbonize the economy, put young people back to work, and ensure American greatness for another century. It was all about “industrial policy, industrial policy, industrial policy,” one of the group’s researchers told me.
That moment soon collapsed. Political ineptitude was partly to blame. In early 2019, Ocasio-Cortez published a document that jocularly implied the Green New Deal aimed to eliminate “cow farts and airplanes,” cratering its wider popularity. But the proposal faced internal critics, too, because its inherent patriotism was not palatable to the movement itself. American rejuvenation, it turned out, was not an acceptable or desirable goal to the left’s anti-imperial flank, which on its own had the power to discredit and destroy any Green New Deal coalition.
And so over time, the left’s climate vision — and the state-building “Green New Deal” that groups like Sunrise once clamored for — instead became anti-imperial. Instead of revitalizing the country’s industrial might, it sought to pacify and dismantle the military industrial complex. Instead of putting young men to work building batteries and electric vehicles, it aimed to create a new socialized economy centered around “care work” — care for children, care for the elderly, care for the natural world.
This transition was partly rooted in objective economic analysis — manufacturing really is becoming less labor-intensive, while healthcare and child care are gobbling up Americans’ incomes — but partly in a more ideological revulsion at the idea of American power itself. If you see the United States not as a flawed, fraught, but fixable actor in global politics, and instead as a failing empire upholding a disastrous and criminal global order, then any policy that strengthens the country’s economic base is impermissible and evil.
Why do I bring all of this up now? Because that episode revealed challenges the modern socialist movement has never figured out how to resolve at the national level. Take Darializa Avila Chevalier, for instance, a Mamdani-backed DSA candidate running in New York’s 13th congressional district. Chevalier seems to oppose the modern system of states in any recognizable sense. In a (since deleted) 2019 post, she tweeted that a “world without borders” is “necessary” and “the only moral way forward.” Even in a recent interview, she was so uncomfortable with the state’s power of coercion and incarceration that she declined to affirm murderers should go to jail. Yet she still wants what only a state can provide; her big issues include universal health care and a $15 minimum wage.
Many contemporary leftists find themselves in her position: They want the fruits of a strong state while remaining fundamentally suspicious of states themselves. That can make them skittish and unreliable partners in any national progressive coalition — many self-identified socialists simply don’t trust that even extremely progressive policy will redound to their benefit. (This centripetal mistrust is part of what tore apart the Biden coalition, even before October 7.)
Cities, however, don’t have this problem. They are powerful governments that are not sovereign states: They lack a military, a currency, a central bank, and a foreign policy. From the anti-imperialist’s perspective, there is little risk in making city governments stronger. In this way, many of the tensions inherent in the Green New Deal and other late 2010s progressive proposals are eased in urban government. Cities are a much more natural home for the new left, and its contradictions, than the federal government.
After all, many ecosocialists never quite knew how to feel about patriotism or the future of the United States. (Many might profess doubts about whether the United States should exist at all.) But they know what they want Brooklyn, or Los Angeles, or Oakland to be, and their vision — of a high-tax polity with abundant public leisure, mass transit, and zero-carbon electricity — is much closer to reality in cities, anyway.
It helps, too, that in an era where negative news predominates, cities are small enough for people to feel some pride in them. Nobody experiences “the United States” as anything other than a quasi-mediated phenomenon. Our vast, beautiful, and complicated country of 345 million people is simply too big to keep in our heads. But New Yorkers experience New York City every day — we shop, work, ride the subway, walk in the park, go to parades, and meet strangers often enough to identify with the reality of this 8 million person city. As a longtime veteran of city politics pointed out to me in private after the mayor’s win, Mamdani ran an extremely patriotic campaign — but the patriotism was for New York itself. He evinced a joy and confidence in the virtue of the New York City experiment that few leftists would extend to the American experiment. You could even argue that the flush of adoration for the patrie that the French felt in the 1780s, as they read a newly liberated press, might not be so different from what New Yorkers feel when they watch an Instagram reel celebrating Knicks in five.
In any case, socialists might soon have to confront more of these contradictions: As mayor, Mamdani has adopted an essentially status quo approach to the NYPD; if his chosen candidates win in congressional primaries on Tuesday, then they will discover their own willingness to compromise. But even that will be, in a sense, a luxury. Chakrabati, after leaving Ocasio-Cortez’s camp, ran his own campaign for Pelosi’s old San Francisco seat this year. He came in third place with 18% of the vote.