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Trump’s pick for Energy Secretary had an easy go of it.

With Donald Trump due to take office in less than a week and a Republican Congress already sworn in, much of the Biden administration’s effort to advance clean and especially renewable energy is now in doubt. The fate of the Inflation Reduction Act is likely to be a major flashpoint — and yet the confirmation hearing for Chris Wright, a literal fracking executive, for Secretary of Energy proved to be relatively low-key and collegial among senators from both parties.
Here are three takeaways from the day’s proceedings:
Wright is not one of Trump’s more controversial nominees, so it’s no surprise that his hearing went smoothly — and that Wright was introduced by his fellow Coloradan, Democratic Senator John Hickenlooper, was an early strong signal that will likely pass through confirmation with ease. To the extent there were any fireworks, they came not from the legislators on the dais but rather from several quickly muffled protests in the hearing room. One protester shouted, “I'm 18 years old and I want a future!" before being removed, while another one yelled, “Will your fracking liquid put out fires in L.A.?”
The questioning before the Senate Committee on Energy and Natural Resources was a mix of parochial concerns from senators about their own states — the committee’s ranking Democrat, Martin Heinrich, for instance, asked if Wright would visit Sandia and Los Alamos National Laboratories, located in his home state of New Mexico, while Pennsylvania Senator David McCormick, a Republican, asked about the prospects of a liquefied natural gas export terminal in Pennsylvania.
That’s not to say climate change didn’t come up. Wright repeatedly avowed that climate change is happening and is caused by the combustion of hydrocarbons, although he demurred that it was a “global” problem and turned his responses repeatedly to developing energy resources in the United States.
“If you shut down industry, those emissions don’t go away, they go somewhere else,” Wright claimed. “The only pathway to reduce greenhouse gas emissions and improve quality of life is energy innovation.”
Wright generally stayed away from specifics on spending levels or individual programs, aside from expressing generalized enthusiasm for the Department of Energy’s network of national laboratories and the importance of its work maintaining the nuclear stockpile. In his opening statement, he identified one of his goals as to “unleash American energy at home and abroad to restore energy dominance.”
Over the course of the hearing, what he meant became at least marginally clearer. Under questioning from McCormick about the Department’s Office of Fossil Energy — renamed the Office of Fossil Energy and Carbon Management under outgoing President Joe Biden and Energy Secretary Jennifer Granholm — Wright lamented that fossil fuel had “fallen out of fashion and out of favor. There’s less interest in investing in it and less interest in talking about it,” he said, before declaring, “I don’t share that aversion.”
He did, however, expressed enthusiasm for certain clean energy technologies, including next-generation geothermal (“It’s an enormous, abundant energy resource below our feet”) and nuclear power. He also went along with Democratic senators who asked about reforms to existing federal permitting regulations to facilitate the buildout of long-distance energy transmission, a focus of the last Congress’s failed permitting reform bill and a key precursor to cleaning up the grid. (Nuclear and geothermal are also two areas where Wright’s company, Liberty Energy, has investments.)
To the extent Wright was willing to talk about solar — there was barely any mention of wind in the entire hearing — he had to be prodded by Democrats in sun-rich states, such as Heinrich and Nevada’s Catherine Cortez Masto. Wright also called into question some estimates of how cheap renewables are, arguing that a popular measure for comparing energy resources with each other, the levelized cost of energy, “misses the boat on electricity generation because it’s like, would you take Uber that was 10% cheaper in cost if you didn’t know when the Uber would pick you up or where it would drop you off?” essentially arguing that the low price of energy generated by renewables doesn’t take into account their unavailability during certain times of day or in certain weather conditions.
Wright’s relatively easy reception reflects the fact that there actually are wide areas of bipartisan agreement on the kind of energy research and technology development work the Department of Energy does. Members on both sides of the aisle saw their enthusiasm for nuclear power — especially small modular reactors — reflected back by Wright, with Arizona Democrat Ruben Gallego saying “I appreciate your enthusiasm for nuclear energy.”
The Energy and Natural Resources Committee is also stocked with Senators who represent states where the DOE has a substantial presence, including New Mexico, California, Utah, Idaho, Colorado, and Washington, which can lead to more collegial hearings if the nominee, as Wright does, affirms the importance and value of the Department’s national laboratories. Agencies that spend money broadly across the country tend to be popular with lawmakers.
But Wright is just the first nominee for a major energy and environment related post to face the Senate. Other nominees, including Doug Burgum for Secretary of the Interior and Lee Zeldin for Environmental Protection Agency administrator, may endure more contentious hearings, as they will likely face questions on issues that are sharply divisive, like opening up public lands for fossil fuel extraction and rules on power plant and tailpipe emissions.
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New guidelines for the clean fuel tax credit reward sustainable agriculture practices — but could lead to greater emissions anyway.
The Treasury Department published proposed guidance last week for claiming the clean fuel tax credit — one of the few energy subsidies that was expanded, rather than diminished, by Trump’s One Big Beautiful Bill Act. There was little of note in the proposal, since many of the higher-stakes climate-related decisions about the tax credit were made by Congress in the statute itself. But it did clear up one point of uncertainty: The guidance indicates that the administration will reward biofuel crops cultivated using “climate-smart agriculture” practices.
On the one hand, it’s a somewhat surprising development simply because of Trump’s record of cutting anything with climate in the title. Last April, the U.S. Department of Agriculture terminated grants from a Biden-era “Climate-Smart Commodities” program, calling it a “slush fund,” and refashioned it into the “Advancing Markets for Producers” initiative.
On the other hand, depending on how the Trump administration implements it, integrating climate-smart agriculture into the clean fuel tax credit could become its own kind of slush fund, paying out billions in taxpayer dollars for questionable benefits and with little accountability.
The clean fuel tax credit, known by its section of the tax code as 45Z, subsidizes the production of low-carbon transportation fuels for vehicles and aviation. Companies can earn up to $1 per gallon depending on the carbon intensity of the production process.
Sourcing corn and soy from farms that use climate-smart agriculture practices is one potential way for biofuel producers to claim more of the credit. “Climate-smart agriculture” can refer to a wide variety of techniques that increase the amount of soil stored in carbon or otherwise reduce emissions, such as reducing soil disturbance, planting cover crops, or implementing nutrient management practices that reduce nitrous oxide emissions. But to date, the federal government has not issued guidance for how to account for these practices.
The Biden administration put out proposed rules just before leaving office that were quite controversial, Nikita Pavlenko, the fuels and aviation program director at the International Council on Clean Transportation, told me. The methodology relied entirely on modeling and did not require farmers to take any real-life measurements of soil carbon before or after adopting the climate-smart practice. The rules also assume that these climate-smart practices would be implemented anew, when in reality many farms have been practicing some of them for years without subsidies. That means ethanol producers could potentially get free money to buy corn from farms that adopted no-till practices long ago, with no additional benefit for the climate.
“These climate-smart ag practices are a rare example of bipartisanship, for what it’s worth, and there’s a lot of money to be made in it,” Pavlenko told me. “But I’m not sure exactly how much actual greenhouse gas reduction or sequestration.”
According to estimates by Pavlenko’s group, the lack of an additionality requirement could lead to the government paying $2.1 billion in subsidies for farms to keep doing what they were already doing, with no new benefits for the climate.
I should note that the climate integrity of the clean fuel tax credit, also known as 45Z, was already compromised by changes made in the OBBBA. Subsidies for crop-based biofuels can indirectly drive deforestation. Prior to Trump’s tax law, producers would have had to take into account emissions related to land use changes when they calculated the carbon intensity of their fuel. Now they don’t. The change will make it much easier for a fuel like ethanol, which is already heavily subsidized through other programs, to qualify.
That, in turn, could cost taxpayers an estimated five times as much per year. When the subsidy was first created in the Inflation Reduction Act, the Joint Committee on Taxation estimated that it would cost taxpayers $2.9 billion over three years. After the OBBBA passed, extending the credit by two years, the committee’s estimate was $25.7 billion.
The existing proposal for incorporating climate-smart agriculture practices into the tax credit calculation would likely push that estimate even higher. After the Biden administration released its proposal last January, groups like Pavlenko’s submitted comments critiquing the methods and suggesting changes. But after the Trump administration took over, it was unclear what would happen with it, he said.
Last week’s guidance was still somewhat vague about what’s next for the climate-smart agriculture calculations, saying only that the proposal published in January is still “undergoing testing, peer review, and public comment,” and that the Treasury expects it to be ready some time in 2026. In the meantime, the Treasury will be taking public comments on the broader 45Z guidance through April 6 and hold a public hearing on May 28.
On Tesla’s sunny picture, Chinese nuclear, and Bad Bunny’s electric halftime show
Current conditions: The Seattle Seahawks returned home to a classically rainy, overcast city from their win in last night’s Super Bowl, though the sun is expected to come out for Wednesday's victory parade • Severe Tropical Cyclone Mitchell is pummeling Western Australia with as much as 8 inches of rain • Flash floods from Storm Marta have killed at least four in Morocco.
Orsted’s two major offshore wind projects in the United States are back on track to be completed on schedule, its chief executive said. Rasmus Errboe told the Financial Times that the Revolution Wind and Sunrise Wind projects in New England would come online in the latter half of this year and in 2027, respectively. “We are fully back to work and construction on both projects is moving forward according to plan,” Errboe said. The U.S. has lost upward of $34 billion worth of clean energy projects since President Donald Trump returned to office, as I wrote last week. A new bipartisan bill introduced in the House last week to reform the federal permitting process would bar the White House from yanking back already granted permits. For now, however, the Trump administration has signaled its plans to appeal federal courts’ decisions to rule against its actions to halt construction on offshore turbines.
The fight over the billions in federal funding the White House is holding up for the Gateway rail project between New Jersey and New York, meanwhile, heated up over the weekend. On Friday night, a federal judge ordered the Trump administration to unfreeze the nearly $16 billion to the project, just hours after construction ground to a halt as funding ran dry. In her ruling, U.S. District Judge Jeannette Vargas of the Southern District of New York wrote that “plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.” Trump had his own idea in mind. Over the weekend, the White House proposed releasing the money only if Senate Minority Leader Chuck Schumer of New York agreed to rename Penn Station after Trump.
Tesla has started hiring staff to ramp up production of solar panels as the company looks to build 100 gigawatts of panel-manufacturing capacity supplied with raw materials produced in America. In a job posting on LinkedIn, Seth Winger, Tesla’s senior manager for solar products engineering, wrote that the panel-producing buildout was “an audacious, ambitious project.” For that, he wrote, “we need audacious, ambitious engineers and scientists to help us grow to massive scale. If you want to solve tough manufacturing problems at breakneck speed and help the U.S. breakthrough on renewable energy generation, come join us.” One of the listings indicated that the target date for bringing the new factories online was the “end of 2028,” giving an indication of timing that Reuters noted had been previously absent from Elon Musk’s public statements. Bloomberg reported last week that Tesla is already looking at sites in New York, Arizona, and Idaho for its manufacturing expansion.
The Trump administration tried to yank permits from the offshore wind projects off New England on the grounds that the towering turbines caused more ecological destruction than the electricity is worth. On Friday, however, Trump signed a proclamation reopening a giant marine preserve in the Atlantic Ocean to commercial fishing. First established at the end of the Obama administration, the Northeast Canyons and Seamounts Marine National Monument lies 130 miles off the coast of Cape Cod, encompassing what The New York Times described as “an area the size of Connecticut that is home to dolphins, endangered whales, sea turtles, and ancient deep-sea corals.” While Trump lifted the ban on commercial fishing in the zone during his first administration, President Joe Biden reinstated the restrictions. But this isn’t the first time Trump reopened a national marine national monument to fishing. In April, he ended protections for the Pacific Islands Heritage Marine National Monument located 750 miles west of Hawaii and designated by President George W. Bush in 2009.
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Connecitcut’s Department of Insurance has launched a website that displays extensive information about the climate risk of every property in the state in what E&E News called “an unprecedented move to alert residents and to promote flood insurance.” The details include each property’s history of damage from floods and other events predicted to get worse as the planet warms. “A single risk score does not fully convey flood and climate risk,” department spokesperson Mary Quinn said. The department plans a marketing campaign this year with ads on radio, TV, and social media, and workshops for insurance agents on how to use the website. Nationwide, climate change is already raising household costs by $900 per year, as Heatmap’s Matthew Zeitlin reported last year. Wildfires have already “destroyed California’s insurance market,” according to an interview with Heatmap's Shift Key podcast last year with an expert at the University of Pennsylvania’s Wharton School.
Unit 1 of the Taipingling nuclear power station in China’s Guangdong has reached criticality seven years after construction began on the gigawatt-sized Hualong One reactor. The debut atom-splitting means the newest reactor is months, if not weeks, from entering into commercial operation. If that enticingly single-digit number of years to build a piece of infrastructure that takes the U.S. more than a decade wasn’t enough of a sign of China’s nuclear strengths, the country this week hit another milestone on a separate atomic station. At the Zhangzhou-3 nuclear reactor, workers last week installed the inner steel dome of the containment building.

Nearly a decade after Puerto Rico’s power grid collapsed and plunged America’s most populous territory into the second-longest blackout in world history, the island’s biggest musical star performed a Super Bowl halftime show that included linemen working on transformers. Bad Bunny’s performance, a revue of his reggaeton hits, served as an ode to what he called “my motherland, my homeland, Puerto Rico.” The grid still suffers regular outages. When it’s working, the power system sends occasional surges through wires that fry appliances. Electricity rates are higher than almost any state, despite Puerto Rico suffering worse poverty rates than Mississippi. At one point, Bad Bunny climbed a utility pole on stage waving a light-blue Puerto Rican flag, a symbol of the movement to establish the island territory as its own independent nation. It was a powerful political statement at America’s most-watched sporting event. For energy nerds, it was a rare opportunity to reflect on one of the worst, most prolonged infrastructure disasters in modern American history.
Rob talks with the lawmaker from New Mexico (and one-time mechanical engineer) about the present and future of climate policy.
The permitting reform conversation is heating up.
On this week’s episode of Shift Key, Rob talks to Senator Martin Heinrich about whether Republicans and Democrats will reach a permitting reform deal this year. They chat about what Democrats would need to see in such a deal, how it could help transmission projects, and why such a deal will ultimately need to constrain President Trump in some way.
They also discuss the future of Democratic energy and climate policy — what Heinrich learned from the Biden administration, what the Inflation Reduction Act got right (and wrong), and why data centers are becoming a new kind of energy villain.
Heinrich is the senior senator from New Mexico (and a well-known transmission policy nerd). He’s also a trained mechanical engineer and the son of a utility lineman. 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: There’s one bill we reported on yesterday at Heatmap called the FREEDOM Act. It just came out of the House. It has a bipartisan group behind it, including [Republican] Mike Lawler from New York and [Democrat] Adam Gray in California. It tries to prevent federal agencies from terminating work on a fully permitted project or affecting ongoing construction on a fully permitted project. And it would establish this fund that a company that has seen its permits get yanked could pull from in the Treasury Department, up to $5 million.
Does this bill meet your concerns? Have you looked at it? Is this the kind of text that you would need to see to say, okay, we could put a deal together?
Senator Martin Heinrich: We’re very intrigued in digging into that legislation right now, and I do think that anything we can do to create more certainty in the market — and that’s true for both renewables and for traditional energy. Because the truth is, we can’t have a system where, when one party controls the White House, they attack this set of energy, and then when it changes hands, that group attacks this other set of energy. We just need to set policy and then have predictable flows of capital into the market. And so I think this is a positive step forward. And we should look at all the things the House does and evaluate them on their merits.
I will say that if the figure is $5 billion for this fund, you could exhaust that on one wind project. And thank goodness the court stepped in as quickly as they did because those offshore wind projects were on the scale of tens of billions of dollars. And effectively, if you’re going shut those off, that’s a takings, in my view. That’s like actually stealing someone’s capital, stealing someone’s money.
And we can’t — that’s third world stuff. We can’t have that in the United States of America. But I give credit to the House for coming forward with this kind of thing because we do need to constrain it.
You can find the full transcript of this episode here.
Mentioned:
SunZia: The Untold Saga of America's Biggest Power Line, by Robinson Meyer
The FREEDOM Act: New Bipartisan House Bill Would Keep President From Yanking Permits
This episode of Shift Key is sponsored by ...
Accelerate your clean energy career with Yale’s online certificate programs. Explore the 10-month Financing and Deploying Clean Energy program or the 5-month Clean and Equitable Energy Development program. Use referral code HeatMap26 and get your application in by the priority deadline for $500 off tuition to one of Yale’s online certificate programs in clean energy. Learn more at cbey.yale.edu/online-learning-opportunities.
Music for Shift Key is by Adam Kromelow.