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The Environmental Protection Agency finalized new air pollution rules on Wednesday, strengthening standards that had not been updated in over a decade. Somewhat counterintuitively, the change could mean that even as the air gets cleaner, you might get more air quality alerts.
As part of the rule change, the EPA updated its Air Quality Index, that colorful scale that many Americans grew intimately familiar with last summer, as wildfire smoke went from being a West Coast problem to a hazard for almost the entire country, seemingly overnight.
The AQI is both easy to interpret, with a color code that goes from a healthy green to a perilous purple, and esoteric. The colors correspond with numbers from zero to upwards of 300, and those numbers correspond with measures of five different pollutants — particulate matter, ozone, carbon monoxide, sulfur dioxide, and nitrogen dioxide.
The Clean Air Act tasks the EPA with setting standards for each of these pollutants. If local concentrations of any one of them tick up above those protective standards, the AQI will jump from green to a more alarming color. The higher the level of pollution is, the higher the AQI and the darker the color will be.
Previously, the EPA’s annual standard for concentrations of particulate matter was 12 micrograms per cubic meter (µg/m3). Based on epidemiological research showing that this standard did not adequately protect public health, the agency has now lowered the standard to 9 µg/m3.
Air quality has improved immensely since the 1970s when the Clean Air Act was passed, preventing hundreds of thousands of premature deaths. But thousands of people still die early, are rushed to the emergency room, develop asthma, or miss work due to air pollution.
The new AQI scale doesn’t mean you need to rethink how you make decisions about when to spend time outdoors or whether to wear a mask. But it does mean that if and when people make decisions based on the AQI, they will be more informed by the science and, in aggregate, contribute to lower all of these public health costs. The rules are expected to prevent 4,500 premature deaths per year by 2032.

Some parts of the country could start to see more days with “moderate air quality,” the yellow category. “People who live in places that have frequent flips over nine — those will be people who have environmental justice issues or live near traffic and industries and big cities and so forth — they are going to get warned a little more,” John Bachmann, a former associate director in EPA’s Office of Air and Radiation told me. “Which is a positive thing.” The agency considers moderate air quality to be “acceptable,” but there may still be a risk for people who are particularly sensitive to pollution.
Also, during major air quality events like wildfires or chemical fires, impacted areas could now be deemed “hazardous” when previously they may have been “very unhealthy,” or deemed “very unhealthy” when before they would have been simply “unhealthy.” This will affect when and how public health officials respond to these kinds of events.
“This is for everybody, not just the most exposed or the most sensitive people. So on both ends of it, this is a step in the right direction,” Bachmann said.
As part of the changes, the agency will also now require cities with more than 350,000 people to report the AQI seven days a week, up from five — a rule that’s been in place since 1999. However, the agency said that most states and cities are already doing this.
The new AQI scale will take effect in 60 days, in early April.
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Clean energy stocks were up after the court ruled that the president lacked legal authority to impose the trade barriers.
The Supreme Court struck down several of Donald Trump’s tariffs — the “fentanyl” tariffs on Canada, Mexico, and China and the worldwide “reciprocal” tariffs ostensibly designed to cure the trade deficit — on Friday morning, ruling that they are illegal under the International Emergency Economic Powers Act.
The actual details of refunding tariffs will have to be addressed by lower courts. Meanwhile, the White House has previewed plans to quickly reimpose tariffs under other, better-established authorities.
The tariffs have weighed heavily on clean energy manufacturers, with several companies’ share prices falling dramatically in the wake of the initial announcements in April and tariff discussion dominating subsequent earnings calls. Now there’s been a sigh of relief, although many analysts expected the Court to be extremely skeptical of the Trump administration’s legal arguments for the tariffs.
The iShares Global Clean Energy ETF was up almost 1%, and shares in the solar manufacturer First Solar and the inverter company Enphase were up over 5% and 3%, respectively.
First Solar initially seemed like a winner of the trade barriers, however the company said during its first quarter earnings call last year that the high tariff rate and uncertainty about future policy negatively affected investments it had made in Asia for the U.S. market. Enphase, the inverter and battery company, reported that its gross margins included five percentage points of negative impact from reciprocal tariffs.
Trump unveiled the reciprocal tariffs on April 2, a.k.a. “liberation day,” and they have dominated decisionmaking and investor sentiment for clean energy companies. Despite extensive efforts to build an American supply chain, many U.S. clean energy companies — especially if they deal with batteries or solar — are still often dependent on imports, especially from Asia and specifically China.
In an April earnings call, Tesla’s chief financial officer said that the impact of tariffs on the company’s energy business would be “outsized.” The turbine manufacturer GE Vernova predicted hundreds of millions of dollars of new costs.
Companies scrambled and accelerated their efforts to source products and supplies from the United States, or at least anywhere other than China.
Even though the tariffs were quickly dialed back following a brutal market reaction, costs that were still being felt through the end of last year. Tesla said during its January earnings call that it expected margins to shrink in its energy business due to “policy uncertainty” and the “cost of tariffs.”
Alphabet and Amazon each plan to spend a small-country-GDP’s worth of money this year.
Big tech is spending big on data centers — which means it’s also spending big on power.
Alphabet, the parent company of Google, announced Wednesday that it expects to spend $175 billion to $185 billion on capital expenditures this year. That estimate is about double what it spent in 2025, far north of Wall Street’s expected $121 billion, and somewhere between the gross domestic products of Ecuador and Morocco.
This is a “a massive investment in absolute terms,” Jefferies analyst Brent Thill wrote in a note to clients Thursday. “Jarringly large,” Guggenheim analyst Michael Morris wrote. With this announcement, total expected capital expenditures by Alphabet, Microsoft and Meta for 2026 are at $459 billion, according to Jefferies calculations — roughly the GDP of South Africa. If Alphabet’s spending comes in at the top end of its projected range, that would be a third larger than the “total data center spend across the 6 largest players only 3 years ago,” according to Brian Nowak, an analyst at Morgan Stanley.
And that was before Thursday, when Amazon told investors that it expects to spend “about $200 billion” on capital expenditures this year.
For Alphabet, this growth in capital expenditure will fund data center development to serve AI demand, just as it did last year. In 2025, “the vast majority of our capex was invested in technical infrastructure, approximately 60% of that investment in servers, and 40% in data centers and networking equipment,” chief financial officer Anat Ashkenazi said on the company’s earnings call.
The ramp up in data center capacity planned by the tech giants necessarily means more power demand. Google previewed its immense power needs late last year when it acquired the renewable developer Intersect for almost $5 billion.
When asked by an analyst during the company’s Wednesday earnings call “what keeps you up at night,” Alphabet chief executive Sundar Pichai said, “I think specifically at this moment, maybe the top question is definitely around capacity — all constraints, be it power, land, supply chain constraints. How do you ramp up to meet this extraordinary demand for this moment?”
One answer is to contract with utilities to build. The utility and renewable developer NextEra said during the company’s earnings call last week that it plans to bring on 15 gigawatts worth of power to serve datacenters over the next decade, “but I'll be disappointed if we don't double our goal and deliver at least 30 gigawatts through this channel by 2035,” NextEra chief executive John Ketchum said. (A single gigawatt can power about 800,000 homes).
The largest and most well-established technology companies — the Microsofts, the Alphabets, the Metas, and the Amazons — have various sustainability and clean energy commitments, meaning that all sorts of clean power (as well as a fair amount of natural gas) are likely to get even more investment as data center investment ramps up.
Jefferies analyst Julien Dumoulin-Smith described the Alphabet capex figure as “a utility tailwind,” specifically calling out NextEra, renewable developer Clearway Energy (which struck a $2.4 billion deal with Google for 1.2 gigawatts worth of projects earlier this year), utility Entergy (which is Google’s partner for $4 billion worth of projects in Arkansas), Kansas-based utility Evergy (which is working on a data center project in Kansas City with Google), and Wisconsin-based utility Alliant (which is working on data center projects with Google in Iowa).
If getting power for its data centers keeps Pichai up at night, there’s no lack of utility executives willing to answer his calls.
The offshore wind industry is now five-for-five against Trump’s orders to halt construction.
District Judge Royce Lamberth ruled Monday morning that Orsted could resume construction of the Sunrise Wind project off the coast of New England. This wasn’t a surprise considering Lamberth has previously ruled not once but twice in favor of Orsted continuing work on a separate offshore energy project, Revolution Wind, and the legal arguments were the same. It also comes after the Trump administration lost three other cases over these stop work orders, which were issued without warning shortly before Christmas on questionable national security grounds.
The stakes in this case couldn’t be more clear. If the government were to somehow prevail in one or more of these cases, it would potentially allow agencies to shut down any construction project underway using even the vaguest of national security claims. But as I have previously explained, that behavior is often a textbook violation of federal administrative procedure law.
Whether the Trump administration will appeal any of these rulings is now the most urgent question. There have been no indications that the administration intends to do so, and a review of the federal dockets indicates nothing has been filed yet.
The Department of Justice declined to comment on whether it would seek to appeal any or all of the rulings.
Editor’s note: This story has been updated to reflect that the administration declined to comment.