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Sparks

SCOTUS Says Biden’s Power Plant Rules Can Stay — For Now

They may not survive a full challenge, though.

The Supreme Court.
Heatmap Illustration/Getty Images

The Supreme Court allowed the Environmental Protection Agency to move forward with its rule restricting climate pollution from power plants on Wednesday, meaning that one of the Biden administration’s key climate policies can stay in place. For now.

The high court’s decision will allow the EPA to defend the rule in a lower court over the next 10 months. A group of power utilities, trade groups, and Republican-governed states are suing to block the greenhouse gas rule, arguing that it oversteps the EPA’s authority under the Clean Air Act.

The EPA’s new rules, which were finalized in April, would be the government’s first successful effort to regulate climate pollution from the power sector. The electricity industry is the second most-polluting sector in the American economy.

The Obama administration previously tried to regulate greenhouse gas pollution from the power sector. The Supreme Court blocked those rules from taking effect in 2016, before striking them down completely in 2022.

This time, the agency has written the rules within a framework laid out by the Supreme Court’s conservative majority in that ruling. In that now landmark case, the court ruled that the EPA could restrict greenhouse gas pollution from power plants only by requiring new technology, such as carbon capture equipment, to be installed at the plant itself. The agency couldn’t require utilities to stop burning fossil fuels and build more renewables.

In the near term, whether the Biden administration’s new attempt at regulating climate pollution will survive depends on the outcome of next month’s election. The Trump campaign has said that it will overturn the EPA’s new climate rules. During his first term, Donald Trump rolled back more than 100 environmental and climate protections.

Should Harris win, the rule will still have to survive the lower court challenge. That case is scheduled to be heard in front of the D.C. Circuit Court of Appeals this term.

“The high court made the right call,” Meredith Hankins, a senior attorney at the Natural Resources Defense Council, said in a statement. “Given its rulings in recent years undercutting environmental protections, the refusal of the majority on the Supreme Court to block this vital rule is a victory for common sense.”

Not all the news from the Supreme Court on Wednesday was good for climate advocates, though.

In the same decision that let the new rules stand, the high court’s conservative justices signaled that they might block the rules next year.

“In my view, the applicants have shown a strong likelihood of success on the merits as to at least some of their challenges” to the rule, Justice Brett Kavanaugh wrote in a short statement attached to the stay, which was cosigned by Justice Neil Gorsuch.

But because the rules don’t require utilities to start complying until next June, there was no reason to grant an emergency stay, the two justices added.

Justice Clarence Thomas would have gone further and stepped in to block the rules immediately. Justice Samuel Alito, another reliable conservative vote, did not participate in the deliberations.

That suggests that four justices could be ready to block the rules as soon as next year. They would need only one more vote — from Chief Justice John Roberts or Justice Amy Coney Barrett — to stay the protections from taking effect.

The statement didn’t provide any hints to what Roberts or Barrett are thinking.

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Sparks

Don’t Look Now, But China Is Importing Less Coal

Add it to the evidence that China’s greenhouse gas emissions may be peaking, if they haven’t already.

A Chinese coal worker.
Heatmap Illustration/Getty Images

Exactly where China is in its energy transition remains somewhat fuzzy. Has the world’s largest emitter of greenhouse gases already hit peak emissions? Will it in 2025? That remains to be seen. But its import data for this year suggests an economy that’s in a rapid transition.

According to government trade data, in the first fourth months of this year, China imported $12.1 billion of coal, $100.4 billion of crude oil, and $18 billion of natural gas. In terms of value, that’s a 27% year over year decline in coal, a 8.5% decline in oil, and a 15.7% decline in natural gas. In terms of volume, it was a 5.3% decline, a slight 0.5% increase, and a 9.2% decline, respectively.

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Sparks

Rewiring America Slashes Staff Due to Trump Funding Freeze

The nonprofit laid off 36 employees, or 28% of its headcount.

Surprised outlets.
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The Trump administration’s funding freeze has hit the leading electrification nonprofit Rewiring America, which announced Thursday that it will be cutting its workforce by 28%, or 36 employees. In a letter to the team, the organization’s cofounder and CEO Ari Matusiak placed the blame squarely on the Trump administration’s attempts to claw back billions in funding allocated through the Greenhouse Gas Reduction Fund.

“The volatility we face is not something we created: it is being directed at us,” Matusiak wrote in his public letter to employees. Along with a group of four other housing, climate, and community organizations, collectively known as Power Forward Communities, Rewiring America was the recipient of a $2 billion GGRF grant last April to help decarbonize American homes.

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Sparks

Sunrun Tells Investors That a Recession Could Be Just Fine, Actually

The company managed to put a positive spin on tariffs.

A house with solar panels.
Heatmap Illustration/Sunrun, Getty Images

The residential solar company Sunrun is, like much of the rest of the clean energy business, getting hit by tariffs. The company told investors in its first quarter earnings report Tuesday that about half its supply of solar modules comes from overseas, and thus is subject to import taxes. It’s trying to secure more modules domestically “as availability increases,” Sunrun said, but “costs are higher and availability limited near-term.”

“We do not directly import any solar equipment from China, although producers in China are important for various upstream components used by our suppliers,” Sunrun chief executive Mary Powell said on the call, indicating that having an entirely-China-free supply chain is likely impossible in the renewable energy industry.

Hardware makes up about a third of the company’s costs, according to Powell. “This cost will increase from tariffs,” she said, although some advance purchasing done before the end of last year will help mitigate that. All told, tariffs could lower the company’s cash generation by $100 million to $200 million, chief financial officer Danny Abajian said.

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