Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Technology

How Biden’s Sustainable Aviation Fuel Tax Credits Will Work

On the future of flying, efficient water heaters, and data centers

How Biden’s Sustainable Aviation Fuel Tax Credits Will Work
Heatmap Illustration/Getty Images

Current conditions: It will be 107 degrees Fahrenheit in Kolkata as Southeast Asia’s heat wave continues • Kansas and Oklahoma are on alert for tornadoes and large hail • The Eta Aquariids meteor shower peaks this week.

THE TOP FIVE

1. Biden administration outlines rules for sustainable aviation fuel subsidies

The Treasury Department and IRS yesterday released new details about the subsidy program for producers of sustainable aviation fuel (SAF), which the Biden administration hopes will help cut emissions from the aviation industry while also supporting farmers. What makes SAF “sustainable” is that it comes from biomass (stuff like corn grain, wood mill waste, even manure) instead of petroleum. Burning SAFs for fuel still produces carbon dioxide, but their lifecycle emissions are lower than those of fossil fuels, and they can be used in existing planes, so they are seen as a quick way to cut aviation emissions in the short term.

Under the new guidance, refiners will be eligible for a credit of $1.25 per gallon if their fuel reduces greenhouse gas emissions by 50% compared to traditional jet fuel, and up to $1.75 per gallon if emissions cuts go beyond 50%. The announcement clarified that SAF made out of ethanol is eligible if corn farmers use “climate smart agriculture” such as cover cropping, no-till, and efficient fertilizer application to keep carbon in the soil. Reaction to the announcement has been mixed. Ethanol trade groups were pleased to be included but annoyed at the stringent farming requirements. Environmental groups worry crop-based biofuels will take up too much farmland and could lead to deforestation. “Powering planes with crop-based biofuels is anything but sustainable,” said Dan Lashof, director of the World Resources Institute. Commercial aviation accounts for 2% of U.S. carbon emissions.

2. DOE finalizes water heater efficiency standards

More news from the government yesterday: The Department of Energy announced that most new electric water heaters will have to run on heat pump technology starting in 2029. Water heaters are some of the biggest energy hogs in the average American home. Making them more efficient could reduce consumers’ utility bills by approximately $100 per year, the DOE said. And the energy savings of the new standards are quite astonishing: 17.6 quadrillion British thermal units over 30 years of shipments, “the largest savings ever from a single DOE efficiency standard, representing more than the energy use of the entire U.S. residential building sector in a single year.” As for the climate, the DOE said the efficiency standards will reduce greenhouse gas emissions by 2.5 billion metric tons over 30 years, which is roughly equivalent to taking 18 million gas-powered cars off the road.

3. Microsoft teams up with Brookfield to power data centers with clean energy

Microsoft is throwing significant financial backing behind renewable energy projects to be developed by Brookfield Asset Management that will help power data centers, the Financial Times reported. The wind and solar projects will be built between 2026 and 2030, and have at least 10.5 gigawatts of generating capacity, or enough to power 1.8 million homes. The tech giant will back the projects’ development to the tune of about $10 billion, “in a deal that underscores the race to meet clean energy commitments while satisfying the voracious energy demand of cloud computing and artificial intelligence,” the FT added.

4. Internal documents offer insight into fossil fuel companies’ climate strategies

Congressional Democrats released documents they say reveal how big oil companies have misled the public about their role in causing and fixing the climate crisis. The documents include internal communications from companies like Exxon, Chevron, Shell, and BP. In the exchanges, company representatives cast doubt on the feasibility of limiting global warming to 1.5 degrees Celsius, dismiss the idea that the Paris Agreement should be cause for changing course on fossil fuel production, and acknowledge the huge climate-warming potential of methane. “For decades, the fossil-fuel industry has known about the economic and climate harms of its products but has deceived the American public to keep collecting more than $600 billion each year in subsidies while raking in record-breaking profits,” said Democratic Sen. Sheldon Whitehouse, who chairs the Senate Budget Committee. The committee will hold a hearing on the subject today.

5. Tesla shares dip after Supercharger layoffs

Tesla shares are down by about 5% this morning following news that the company slashed its entire Supercharging unit. Sources toldElectrek that Tesla has already pulled out of four leases on planned Supercharger locations in New York. CEO Elon Musk also confirmed on X that the company will slow construction of new charging stations.

THE KICKER

The North Atlantic broke its 420-day streak of record high sea surface temperatures this week.

X/EliotJacobson

Yellow

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
A destroyed house and a blueprint.
Heatmap Illustration/Getty Images

Recovering from the Los Angeles wildfires will be expensive. Really expensive. Insurance analysts and banks have already produced a wide range of estimates of both what insurance companies will pay out and overall economic loss. AccuWeatherhas put out an eye-catching preliminary figure of $52 billion to $57 billion for economic losses, with the service’s chief meteorologist saying that the fires have the potential to “become the worst wildfire in modern California history based on the number of structures burned and economic loss.” On Thursday, J.P. Morgan doubled its previous estimate for insured losses to $20 billion, with an economic loss figure of $50 billion — about the gross domestic product of the country of Jordan.

The startlingly high loss figures from a fire that has only lasted a few days and is (relatively) limited in scope show just how distinctly devastating an urban fire can be. Enormous wildfires thatcover millions of acres like the 2023 Canadian wildfires can spew ash and particulate matter all over the globe and burn for months, darkening skies and clogging airways in other countries. And smaller — and far deadlier fires — than those still do not produce the same financial roll.

Keep reading...Show less
Green
Climate

Why the L.A. Fires Are Exceptionally Hard to Fight

Suburban streets, exploding pipes, and those Santa Ana winds, for starters.

Firefighters on Sunset Boulevard.
Heatmap Illustration/Getty Images

A fire needs three things to burn: heat, fuel, and oxygen. The first is important: At some point this week, for a reason we have yet to discover and may never will, a piece of flammable material in Los Angeles County got hot enough to ignite. The last is essential: The resulting fires, which have now burned nearly 29,000 acres, are fanned by exceptionally powerful and dry Santa Ana winds.

But in the critical days ahead, it is that central ingredient that will preoccupy fire managers, emergency responders, and the public, who are watching their homes — wood-framed containers full of memories, primary documents, material wealth, sentimental heirlooms — transformed into raw fuel. “Grass is one fuel model; timber is another fuel model; brushes are another — there are dozens of fuel models,” Bobbie Scopa, a veteran firefighter and author of the memoir Both Sides of the Fire Line, told me. “But when a fire goes from the wildland into the urban interface, you’re now burning houses.”

Keep reading...Show less
Yellow
Climate

What Started the Fires in Los Angeles?

Plus 3 more outstanding questions about this ongoing emergency.

Los Angeles.
Heatmap Illustration/Getty Images

As Los Angeles continued to battle multiple big blazes ripping through some of the most beloved (and expensive) areas of the city on Thursday, a question lingered in the background: What caused the fires in the first place?

Though fires are less common in California during this time of the year, they aren’t unheard of. In early December 2017, power lines sparked the Thomas Fire near Ventura, California, which burned through to mid-January. At the time it was the largest fire in the state since at least the 1930s. Now it’s the ninth-largest. Although that fire was in a more rural area, it ignited for many of the same reasons we’re seeing fires this week.

Keep reading...Show less
Green