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For those keeping score, that’s three more than wanted to preserve them last year.
Those who drew hope from the letter 18 House Republicans sent to Speaker Mike Johnson last August calling for the preservation of energy tax credits under the Inflation Reduction Act must be jubilant this morning. On Sunday, 21 House Republicans sent a similar letter to House Ways and Means Chairman Jason Smith. Those with sharp eyes will have noticed: That’s three more people than signed the letter last time, indicating that this is a coalition with teeth.
As Heatmap reported in the aftermath of November’s election, four of the original signatories were out of a job as of January, meaning that the new letter features a total of seven new recruits. So who are they?
The new letter is different from the old one in a few key ways. First, it mentions neither the Inflation Reduction Act nor its slightly older cousin, the Infrastructure Investment and Jobs Act, by name. Instead, it emphasizes “the importance of prioritizing energy affordability for American families and keeping on our current path to energy dominance amid efforts to repeal or reform current energy tax credits.” The letter also advocates for an “all-of-the-above” approach to energy development that has long been popular among conservatives but has seemed to fall out of vogue under Trump 2.0.
Lastly, while the new letter repeats the previous version’s emphasis on policy stability for businesses, it adds a new plea on behalf of ratepayers. “As our conference works to make energy prices more affordable, tax reforms that would raise energy costs for hard working Americans would be contrary to this goal,” it reads. “Further, affordable and abundant energy will be critical as the President works to onshore domestic manufacturing, supply chains, and good paying jobs, particularly in Republican run states due to their business-friendly environments. Pro-energy growth policies will directly support these objectives.”
As my colleagues Robinson Meyer and Emily Pontecorvo have written, tariffs on Canadian fuel would raise energy prices in markets across the U.S. That includes some particularly swingy states, e.g. Michigan, which perhaps explains Rep. James’ seeming about-face.
Republicans’ House majority currently stands at all of four votes, so although 21 members might not be huge on the scale of the full House, they still represent a significant problem for Speaker Johnson.
Editor’s note: This story has been updated to reflect the fact that Rep. James did not unseat Democrat Carl Marlinga in 2022 as the district had been newly created following the 2020 census.
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I wanted to update you on some very exciting news — our Decarbonize Your Life section just won the National Magazine Award for Service Journalism. It’s a huge honor for a publication that just turned two years old last month and a testament to the outstanding journalism our small but mighty newsroom does every day guiding our readers through the great energy transition.
A huge shout out, in particular, to our deputy editor Jillian Goodman for making the section so smart and helpful, to Robinson Meyer for dreaming up the idea, and to all the writers — Jeva, Katie, Emily, Charu, Taylor, and Andrew — who reported so insightfully for it. Tackling a complex but consequential subject like how to make better personal decisions around climate changewas a massive undertaking, but a labor of love.
If you missed this special section, you can check it out here.
And thank you, as always, for reading us and making our work possible.
Nico
Founder & Editor in chief
The administration is doubling down on an April 20 end date for the traffic control program.
Congestion pricing has only been in effect in New York City for three months, but its rollout has been nearly as turbulent as the 18-year battle to implement it in the first place.
Trump’s Department of Transportation escalated its threat this week to retaliate against New York if the state’s Metropolitan Transit Authority, or MTA, does not shut down the tolling program by April 20.
The federal agency reposted a CBS New York story on social media that purported it had agreed to allow congestion pricing to remain in place through October, calling the story “a complete lie.”
“Make no mistake — the Trump Administration and USDOT will not hesitate to use every tool at our disposal in response to non-compliance later this month,” the agency said in the post.
The post did not say what those tools might be, but a previous post from Transportation Secretary Sean Duffy on March 20 made a veiled threat to withhold funding from the state if it did not shut down the tolling program. “The billions of dollars the federal government sends to New York are not a blank check,” he said.
Duffy notified the MTA on February 19 that he was rescinding federal approval of its congestion pricing program, which charges a $9 fee for drivers who enter New York City’s central business district. The toll had only just gone into effect in early January, but there was already evidence that it was reducing traffic. The MTA immediately filed a lawsuit in the U.S. District Court for the Southern District of New York challenging Duffy’s actions.
The CBS New York story reported on a joint letter that the MTA and USDOT submitted to the presiding judge mapping out a timeline for the case to proceed. The MTA agreed to file an amended complaint by April 18, and the DOT agreed to respond to it by May 27. Following that, the timeline allows for the back-and-forth over evidence leading up to a ruling to potentially stretch until late October. Both parties called for the judge to reach a decision based on written arguments, without a formal trial.
Despite agreeing to this timeline for the case — the whole point of which is to determine the legality of DOT’s order to terminate congestion pricing — the DOT maintains that New York City must stop charging drivers by April 20.
The MTA refuses to do so. “Congestion pricing is in effect,” Regina Kaplan, the attorney for the MTA, said during a pretrial conference call on Wednesday. “We believe it's working, and as we stated in our complaints, we don't intend to turn it off unless there's an order from your honor that we need to do so.”
In response, Dominika Tarczynska, from the U.S. attorney’s office, told the judge that Duffy is “still evaluating what DOT’s options are if New York City does not comply, and there has been no final decision as to, what, if anything will occur on April 20.”
There were a lot of tariff losers, but only one tariff winner.
The U.S. stock market has taken its worst hit this week since March 2020, with the S&P 500 falling over 10% in just two days, while the tech-heavy Nasdaq is down 22% from its all-time high in December. The tremendous decline in stock values is a reflection of Donald Trump’s chaotic attempt at reordering the global economy, wrenching America’s average effective tariff rate to the highest level since 1909 — four years before the establishment of the federal income tax.
The clean energy economy has not been spared, although the effect has hardly been uniform. Some of the highest flying companies of 2024 and early this year — think Tesla or anyone selling power to a data center — have been some of the hardest hit, while some companies closer to the residential solar market have held their own.
Here’s a look at how some of these companies have performed over the past two days: