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As if one set of energy policy announcements wasn’t enough.

The Environmental Protection Agency’s power plant rules were not the only big energy policy announcement from the Biden administration Thursday. The White House also announced a bevy of initiatives and projects meant to bolster infrastructure throughout the country.
Transmission arguably sits at the absolute center of the Biden administration’s climate policy. Without investments to move new renewable power from where it’s sunny or windy but desolate and remote to where it’s still and cloudy but densely populated, the Inflation Reduction Act is unlikely to meet its emissions reduction potential. While the most important transmission policy changes will likely come from the Federal Energy Regulatory Commission next month, and possibly permitting reform legislation under consideration in Congress, the White House and Department of Energy are doing what they can with tens of billions of dollars allotted in both the IRA and Bipartisan Infrastructure Law and their power over environmental regulations.
One such pot of money is the Transmission Facilitation Program, which directs funds towards interregional transmission projects. The DOE announced Thursday that one such project, the Southwest Intertie Project-North, would get up to $331 million in funding. The almost-300 mile-long transmission line would connect wind projects in Idaho to the California electric grid. The project was conditionally approved by California regulators in December and would run from Midpoint, Idaho to Robinson Summit in Eastern Nevada, where it could connect to already operating lines that run to Las Vegas and then interconnect with California. The total costs are estimated to run to just over $1 billion.
“We’re building out transmission lines to get clean power from where it's generated to where it's needed,” Secretary of Energy Jennifer Granholm told reporters Wednesday. The project “will increase grid resilience, especially during wildfires, and it'll create over 300 high quality and union construction jobs,” Granholm said.
The other announcements had to do with great bugbear of the energy transition: permitting. Transmission projects can take decades from conception to completion, often featuring years-long reviews, stakeholders negotiations, and lawsuits. Interregional transmission — especially in the Western United States, where much of the country’s best wind and solar resources are (along with energy-hungry populations in California and the Southwest) — often takes place on and across public lands, thus ensuring plans must undergo the federal government’s full gamut of environmental review.
“Right now, it takes about four years, on average, to permit a new transmission project in the U.S., and in extreme cases it can take over a decade,” Granholm said.
To help speed that up, the DOE said it was establishing a new Coordinated Interagency Transmission Authorization and Permits program, which will facilitate consultation across all relevant government bodies, “create efficiencies, and establish a standard two-year timeline for federal transmission authorizations and permits.” This would establish the DOE as “the main point of contact” for transmission developers Granholm said. This constitutes “a huge improvement from the status quo,” she added, “because developers routinely have to navigate several independent permitting processes throughout the federal government.”
Also in the same announcement (yes, it was a big one), the DOE also said it was creating a “categorical exclusion” — essentially an exemption from much of the typically required environmental review — for upgrading existing transmission lines. While there’s no way to avoid building new transmission to connect new projects, existing lines could be become far more efficient, which would go a long way toward handling the expected steep rise in electricity demand.
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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.