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Electric vehicles are the future. But what if you can’t buy one now?

As unpredictable as world events have been recently, very few people would’ve put money on the humble Toyota Prius getting a stunning makeover for 2023. Somehow, that’s exactly what happened. Now the all-new, fifth-generation Prius hybrid boasts sleek, almost sports-car-like looks to go with its impressive 57 miles per gallon.
The Prius will need every advantage it can muster. Its sales have been down for years, and hybrid cars also feel almost anachronistic compared to the new crop of high-range, high-performance electric vehicles hitting the market. Why go hybrid when you’re about to have more options than ever when it comes to breaking up with gasoline entirely?
Even the Biden Administration’s Inflation Reduction Act seems to be reinforcing this idea. While the act modernized how EV and plug-in hybrid tax credits work, regular hybrids without plugs have been left out in the cold. In other words, if you want an American-made EV like a Ford F-150 Lightning, you now qualify for a $7,500 tax break; but if you want a hybrid F-150 or Maverick pickup truck, you’re out of luck because those don’t have plugs.
Furthermore, the hybrid — long the standard-bearer for eco-friendly driving — seems to have a target on its back. “Hybrid cars are still incredibly popular, but are they good for the environment?,” NPR wondered in February, probably much to the chagrin of listeners, many of whom have enjoyed “All Things Considered" while commuting in their own hybrids.
This is all deeply unfortunate, especially given how quickly we need to reduce emissions to avoid the worst outcomes of climate change. Whether there's a plug or not is also the wrong way to think about hybrids.
There’s still a strong case to be made for hybrids today. But let’s be clear about what that case isn’t: an argument for extending the internal combustion era or to slow-walk EV adoption. Rather, hybrids can and should be seen as an essential tool for reducing vehicle emissions right now, and as cars that still have tremendous advantages EVs don’t have yet.
The auto industry’s move toward zero-emission vehicles is now basically inevitable. But there’s still a long way to go. In the interim, cars that pair electricity and gasoline can play a vital role in making the air cleaner and serving as a gateway drug for widespread EV adoption.
For a long time, the primary appeal of a hybrid car was that it would help you save money on gas. But they do much more than that. The science is clear: Hybrid vehicles generate fewer tailpipe emissions than their all-gasoline counterparts, and obviously none when running only on electricity. In fact, 2021 data from the U.S. Department of Energy indicates hybrids produce about half the carbon dioxide on average that fully internal-combustion cars do. The numbers are even better for plug-in hybrids.
Of course, battery EVs fare the best; the only emissions they’re tied to are related to vehicle and battery production and charging. If your goal with your next car purchase is to cut down on CO2, this is a superb way to do so.
As for plug-in hybrids, those have gotten a bad rap in recent years with various studies (especially out of Europe) claiming they pollute much more than automakers advertise. Certainly, that wouldn’t be the car industry’s first rodeo when it comes to greasing emissions — remember Dieselgate?
One thing that hasn’t made headlines is the fact that in Europe, many corporations took advantage of government subsidies to buy PHEVs for their corporate fleets, but company car owners often didn’t charge them. The result is a heavier car, thanks to its additional batteries, that isn’t being used as intended.
The moral of this story: If you drive a PHEV, make sure to plug it in so that it can be driven in all-electric mode properly. The average PHEV gets between 20 and 40 miles of electric range, and given that most Americans drive around 40 miles a day on average, you may be surprised how much gasoline you don’t end up using.
You have more options than ever before when it comes to EVs, and things will get even better in the years to come. Just about every automaker is planning an aggressive EV rollout across multiple categories — trucks, vans, even convertibles — and multiple price points. Electric range is getting better, and thanks to the IRA, EVs built in North America will come with enticing tax credits. Starting next year, those credits will even be applied at the point of sale at the dealership, so you won’t even need to wait on a tax return to reap the benefits.
But there’s still a lot of daylight between where the EV market is now and where it will go next. America’s public charging network is woefully inadequate and many providers offer an infamously subpar experience. Few good charging solutions exist for city dwellers and those who live in apartments. (In fact, I’ve been seeing more and more EVs here in New York charged by 100-foot extension cords running out of windows, which is suboptimal for countless reasons.) Whether you’re into road trips or not, long distances remain a challenge for many EVs too, thanks to these network issues.
Tesla still has objectively the best charging network and it’s opening up to other EVs, but that’s a ways off. So is the network expansion that will be driven by the IRA’s incentives.
Then there's the fact the best EVs are comparatively hard to buy. Many of the really in-demand new EVs — the Mustang Mach-E, the Hyundai Ioniq 5, and the Kia EV6 — are tough to find and still impacted by supply chain issues. If you want a car with great range, a beautiful interior, and excellent range, get in line. Now, to be fair, supply remains super weird across the whole automotive industry, but the most desirable electric cars still seem to have among the longest lines.
EVs remain expensive as well, even by modern standards; by late last year, the average EV was priced around $65,000, around $20,000 more than a typical new vehicle's price tag. That too should change as batteries get cheaper and more options come to market, but for now, going electric could mean sticker shock, too — especially if your EV does not qualify for the new tax breaks.
In other words, it should get much easier to be an EV owner in the next few years. Until then, if these barriers to entry are too onerous, consider a hybrid instead.
There’s also the unfortunate matter of how “green” our electricity really is. Recently, Polestar and Rivian — two companies with every incentive to get you to buy their EVs — jointly commissioned a study that urged a dramatic increase in renewable energy powering both the automotive supply chain and electricity sources in order for these vehicles to be maximally effective at deterring climate change.
EVs alone will not be enough to reduce the harmful effects of the transportation sector. While it’s hard to say “be patient” when we directly experience climate change, we must realize that making changes that should’ve happened decades ago will be a process.
Until then, there’s great value in doing whatever can be done to reduce CO2 emissions, and driving hybrids — to say nothing of walking, biking, and taking public transit — can be crucial to that too.
Are hybrid cars essentially a stopgap to full EV adoption? At this point, it feels like the definitive answer is yes. Car companies like General Motors, Ford, Volvo, and Volkswagen all say they plan to phase out internal combustion entirely by the middle of the next decade, and even if they try to renege on their promises, governments from Brussels to California are banning the sale of new gasoline cars around the same time.
Between regulations and market forces — especially China’s aggressive EV push — the writing is on the wall for gasoline cars. Reducing emissions will be the single most crucial guiding force for the auto industry over the next few decades. In the meantime, and for that very reason, more and more hybrid options are coming to market.
Sure, the Prius’ sales figures don’t look great, but the venerable Toyota Tacoma truck is heavily expected to offer a hybrid option soon. The Toyota Sienna minivan is now only offered as a hybrid, as is the quirky new Toyota Crown sedan. Honda brought back the Accord Hybrid for 2023 and the all-new CR-V Hybrid looks promising as well. Mazda is finally dipping its toes into that market with the new CX-90 plug-in hybrid. Even the beloved Mazda Miata, the gold standard for affordable sports cars, is heavily rumored to have some kind of electrification when an all-new one arrives in the next few years. And as of this year, every new Volvo you can buy is a hybrid if it’s not a full EV.
The point is, while EVs are getting the splashy headlines, car companies aren’t yet done with hybrids. Not by a long shot. In fact, electrification is likely to become even more common as we start to approach the end of the internal combustion era, particularly as battery costs start to go down.
Think of it this way: If the Chevy Corvette can go hybrid, so can you.
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Plus more insights from Heatmap’s latest event Washington, D.C.
At Heatmap’s event, “Supercharging the Grid,” two members of the House of Representatives — a California Democrat and a Colorado Republican — talked about their shared political fight to loosen implementation of the National Environmental Policy Act to accelerate energy deployment.
Representatives Gabe Evans and Scott Peters spoke with Heatmap’s Robinson Meyer at the Washington, D.C., gathering about how permitting reform is faring in Congress.
“The game in the 1970s was to stop things, but if you’re a climate activist now, the game is to build things,” said Peters, who worked as an environmental lawyer for many years. “My proposal is, get out of the way of everything and we win. Renewables win. And NEPA is a big delay.”
NEPA requires that the federal government review the environmental implications of its actions before finalizing them, permitting decisions included. The 50-year-old environmental law has already undergone several rounds of reform, including efforts under both Presidents Biden and Trump to remove redundancies and reduce the size and scope of environmental analyses conducted under the law. But bottlenecks remain — completing the highest level of review under the law still takes four-and-a-half years, on average. Just before Thanksgiving, the House Committee on Natural Resources advanced the SPEED Act, which aims to ease that congestion by creating shortcuts for environmental reviews, limiting judicial review of the final assessments, and preventing current and future presidents from arbitrarily rescinding permits, subject to certain exceptions.
Evans framed the problem in terms of keeping up with countries like China on building energy infrastructure. “I’ve seen how other parts of the world produce energy, produce other things,” said Evans. “We build things cleaner and more responsibly here than really anywhere else on the planet.”
Both representatives agreed that the SPEED Act on its own wouldn’t solve all the United States’ energy issues. Peters hinted at other permitting legislation in the works.
“We want to take that SPEED Act on the NEPA reform and marry it with specific energy reforms, including transmission,” said Peters.
Next, Neil Chatterjee, a former Commissioner of the Federal Energy Regulatory Commission, explained to Rob another regulatory change that could affect the pace of energy infrastructure buildout: a directive from the Department of Energy to FERC to come up with better ways of connecting large new sources of electricity demand — i.e. data centers — to the grid.
“This issue is all about data centers and AI, but it goes beyond data centers and AI,” said Chatterjee. “It deals with all of the pressures that we are seeing in terms of demand from the grid from cloud computing and quantum computing, streaming services, crypto and Bitcoin mining, reshoring of manufacturing, vehicle electrification, building electrification, semiconductor manufacturing.”
Chatterjee argued that navigating load growth to support AI data centers should be a bipartisan issue. He expressed hope that AI could help bridge the partisan divide.
“We have become mired in this politics of, if you’re for fossil fuels, you are of the political right. If you’re for clean energy and climate solutions, you’re the political left,” he said. “I think AI is going to be the thing that busts us out of it.”
Updating and upgrading the grid to accommodate data centers has grown more urgent in the face of drastically rising electricity demand projections.
Marsden Hanna, Google’s head of energy and dust policy, told Heatmap’s Jillian Goodman that the company is eyeing transmission technology to connect its own data centers to the grid faster.
“We looked at advanced transition technologies, high performance conductors,” said Hanna. “We see that really as just an incredibly rapid, no-brainer opportunity.”
Advanced transmission technologies, otherwise known as ATTs, could help expand the existing grid’s capacity, freeing up space for some of the load growth that economy-wide electrification and data centers would require. Building new transmission lines, however, requires permits — the central issue that panelists kept returning to throughout the event.
Devin Hartman, director of energy and environmental policy at the R Street Institute, told Jillian that investors are nervous that already-approved permits could be revoked — something the solar industry has struggled with under the Trump administration.
“Half the battle now is not just getting the permits on time and getting projects to break ground,” said Hartman. “It’s also permitting permanence.”
This event was made possible by the American Council on Renewable Energy’s Macro Grid Initiative.
On gas turbine backorders, Europe’s not-so-green deal, and Iranian cloud seeding
Current conditions: Up to 10 inches of rain in the Cascades threatens mudslides, particularly in areas where wildfires denuded the landscape of the trees whose roots once held soil in place • South Africa has issued extreme fire warnings for Northern Cape, Western Cape, and Eastern Cape • Still roiling from last week’s failed attempt at a military coup, Benin’s capital of Cotonou is in the midst of a streak of days with temperatures over 90 degrees Fahrenheit and no end in sight.

Exxon Mobil Corp. plans to cut planned spending on low-carbon projects by a third, joining much of the rest of its industry in refocusing on fossil fuels. The nation’s largest oil producer said it would increase its earnings and cash flow by $5 billion by 2030. The company projected earnings to grow by 13% each year without any increase in capital spending. But the upstream division, which includes exploration and production, is expected to bring in $14 billion in earnings growth compared to 2024. The key projects The Wall Street Journal listed in the Permian Basin, Guyana and at liquified natural gas sites would total $4 billion in earnings growth alone over the next five years. The announcement came a day before the Department of the Interior auctioned off $279 million of leases across 80 million acres of federal waters in the Gulf of Mexico.
Speaking of oil and water, early Wednesday U.S. armed forces seized an oil tanker off the coast of Venezuela in what The New York Times called “a dramatic escalation in President Trump’s pressure campaign against Nicolás Maduro.” When asked what would become of the vessel's oil, Trump said at the White House, “Well, we keep it, I guess.”
The Federal Reserve slashed its key benchmark interest rate for the third time this year. The 0.25 percentage point cut was meant to calibrate the borrowing costs to stay within a range between 3.5% and 3.75%. The 9-3 vote by the central bank’s board of governors amounted to what Wall Street calls a hawkish cut, a move to prop up a cooling labor market while signaling strong concerns about future downward adjustments that’s considered so rare CNBC previously questioned whether it could be real. But it’s good news for clean energy. As Heatmap’s Matthew Zeitlin wrote after the September rate cut, lower borrowing costs “may provide some relief to renewables developers and investors, who are especially sensitive to financing costs.” But it likely isn’t enough to wipe out the effects of Trump’s tariffs and tax credit phaseouts.
GE Vernova plans to increase its capacity to manufacture gas turbines by 20 gigawatts once assembly line expansions are completed in the middle of next year. But in a presentation to investors this week, the company said it’s already sold out of new gas turbines all the way through 2028, and has less than 10 gigawatts of equipment left to sell for 2029. It’s no wonder supersonic jet startups, as I wrote about in yesterday’s newsletter, are now eyeing a near-term windfall by getting into the gas turbine business.
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The European Union will free more than 80% of the companies from environmental reporting rules under a deal struck this week. The agreement between EU institutions marks what Politico Europe called a “major legislative victory” for European Commission President Ursula von der Leyen, who has sought to make the bloc more economically self-sufficient by cutting red tape for business in her second term in office. The rollback is also a win for Trump, whose administration heavily criticized the EU’s green rules. It’s also a victory for the U.S. president’s far-right allies in Europe. The deal fractured the coalition that got the German politician reelected to the EU’s top job, forcing her center-right faction to team up with the far right to win enough votes for secure victory.
Ravaged by drought, Iran is carrying out cloud-seeding operations in a bid to increase rainfall amid what the Financial Times clocked as “the worst water crisis in six decades.” On Tuesday, Abbas Aliabadi, the energy minister, said the country had begun a fresh round of injecting crystals into clouds using planes, drones, and ground-based launchers. The country has even started developing drones specifically tailored to cloud seeding.
The effort comes just weeks after the Islamic Republic announced that it “no longer has a choice” but to move its capital city as ongoing strain on water supplies and land causes Tehran to sink by nearly one foot per year. As I wrote in this newsletter, Iranian President Masoud Pezeshkian called the situation a “catastrophe” and “a dark future.”
The end of suburban kids whiffing diesel exhaust in the back of stuffy, rumbling old yellow school buses is nigh. The battery-powered bus startup Highland Electric Fleets just raised $150 million in an equity round from Aiga Capital Partners to deploy its fleets of buses and trucks across the U.S., Axios reported. In a press release, the company said its vehicles would hit the streets by next year.
Cities across the state are adopting building codes that heavily incentivize homeowners to make the switch.
A quiet revolution in California’s building codes could turn many of the state’s summer-only air conditioners into all-season heat pumps.
Over the past few months, 12 California cities have adopted rules that strongly incentivize homeowners who are installing central air conditioning or replacing broken AC systems to get energy-efficient heat pumps that provide both heating and cooling. Households with separate natural gas or propane furnaces will be allowed to retain and use them, but the rules require that the heat pump becomes the primary heating system, with the furnace providing backup heat only on especially cold days, reducing fossil fuel use.
These “AC2HP” rules, as proponents call them, were included in a routine update of California building codes in 2024. Rather than make it mandatory, regulators put the heat pump rule in a package of “stretch codes” that cities could adopt as they saw fit. Moreno Valley, a city in Riverside County, east of Los Angeles, was the first to pass an ordinance adopting the AC2HP code back in August. A steady stream of cities have followed, with Los Gatos and Portola Valley joining the party just last week. Dylan Plummer, a campaign advisor for Sierra Club's Building Electrification Campaign, expects more will follow in the months to come — “conversations are moving” in Los Angeles and Sacramento, as well, he told me.
“This is a consumer protection and climate policy in one,” he said. As California gets hotter, more households in the state are getting air conditioners for the first time. “Every time a household installs a one-way AC unit, it’s a missed opportunity to install a heat pump and seamlessly equip homes with zero-emission heating.”
This policy domino effect is not unlike what happened in California after the city of Berkeley passed an ordinance in 2019 that would have prohibited new buildings from installing natural gas. The Sierra Club and other environmental groups helped lead more than 70 cities to follow in Berkeley’s footsteps. Ultimately, a federal court overturned Berkeley’s ordinance, finding that it violated a law giving the federal government authority over appliance energy usage. Many of the other cities have since suspended their gas bans.
Since then, however, California has adopted state-wide energy codes that strongly encourage new buildings to be all-electric anyway. In 2023, more than 70% of requests for service lines from developers to Pacific Gas & Electric, the biggest utility in the state, were for new all-electric buildings. The AC2HP codes tackle the other half of the equation — decarbonizing existing buildings.
A coalition of environmental groups including the Sierra Club, Earthjustice, and the Building Decarbonization Coalition are working to seed AC2HP rules throughout the state, although it may not be easy as cost-of-living concerns grow more politically charged.
Even in some of the cities that have adopted the code, members of the public worried about the expense. In Moreno Valley, for instance, a comparatively low-income community, six out of the seven locals who spoke on the measure at a meeting in August urged elected officials to reject it, and not just because of cost — some were also skeptical of the technology.
In Glendale, a suburb of Los Angeles which has more socioeconomic diversity, all four commenters who spoke also urged the council to reject the measure. In addition to cost concerns, they questioned why the city would rush to do something like this when the state didn’t make it mandatory, arguing that the council should have held a full public hearing on the change.
In Menlo Park, on the other hand, which is a wealthy Silicon Valley suburb, all five speakers were in support of the measure, although each of them was affiliated with an environmental group.
Heat pumps are more expensive than air conditioners by a couple of thousands of dollars, depending on the model. With state and local incentives, the upfront cost can often be comparable. When you take into account the fact that you’re moving from using two appliances for heating and cooling to one, the equipment tends to be cheaper in the long run.
The impacts of heat pumps on energy bills are more complicated. Heat pumps are almost always cheaper to operate in the winter than furnaces that use propane or electric resistance. Compared to natural gas heating, though, it mostly depends on the relative cost of gas versus electricity. Low-income customers in California have access to lower electricity rates that make heat pumps more likely to pencil out. The state also recently implemented a new electricity rate scheme that will see utilities charge customers higher fixed fees and lower rates per kilowatt-hour of electricity used, which may also help heat pump economics.
Matthew Vespa, an senior attorney at Earthjustice described the AC2HP policy as a way to help customers “hedge against gas rates going up,” noting that gas prices are likely to rise as the U.S. exports more of the fuel as liquified natural gas, and also as gas companies lose customers. “It’s really a small incremental cost to getting an AC replaced with a lot of potential benefits.”
The AC2HP idea dates back to a 2021 Twitter thread by Nate Adams, a heat pump installer who goes by the handle “Nate the House Whisperer.” Adams proposed that the federal government should pay manufacturers to stop producing air conditioners and only produce heat pumps. Central heat pumps are exactly the same as air conditioners, except they provide heating in addition to cooling thanks to “a few valves or ~$100-300 in parts,” Adam said at the time.
The problem is, most homeowners and installers are either unfamiliar with the technology or skeptical of it. While heat pumps have been around for decades and are widespread in other parts of the world, especially in Asia, they have been slower to take off in the United States. One reason is the common misconception that they don’t work as well as furnaces for heating. Part of the issue is also that furnaces themselves are less expensive, so heat pumps are a tougher sell in the moment when someone’s furnace has broken down. Adams’ policy pitch would have given people no choice but to start installing heat pumps — even if they didn’t use them for heating — getting a key decarbonization technology into homes faster than any rebate or consumer incentive could, and getting the market better acquainted with the tech.
The idea gained traction quickly. An energy efficiency research and advocacy organization called CLASP published a series of reports looking at the potential cost and benefits, and a manufacturer-focused heat pump tax credit even made its way into a bill proposal from Senator Amy Klobuchar in the runup to the 2022 Inflation Reduction Act. While rules that target California homeowners obviously won’t have the nation-wide effect that Adams’ would have, they still have the potential to send a strong market signal, considering California is the fifth largest economy in the world.
The AC2HP codes, which start going into effect next year, will help smooth the road to another set of building electrification rules that will apply in some parts of the state beginning in 2029. At that point, households in the Bay Area will be subject to new air quality standards that require all newly installed heating equipment to be zero-emissions — in other words, if a family’s furnace breaks down, they’ll have to replace it with a heat pump. State regulators are developing similar standards that would apply statewide starting in 2035. The AC2HP rule ensures that if that same family’s air conditioner breaks between now and then, they won’t end up with a new air conditioner, which would eventually become redundant.
The rule is just one of a bunch of new tools cities are using to decarbonize existing buildings. San Francisco, for example, adopted an even stricter building code in September that requires full, whole-home electrification when a building is undergoing a major renovation that includes upgrades to its mechanical systems. Many cities are also adopting an “electrical readiness” code that requires building owners to upgrade their electrical panels and add wiring for electric vehicle charging and induction stoves when they make additions or alterations to an existing building.
To be clear, homeowners in cities with AC2HP laws will not be forced to buy heat pumps. The code permits the installation of an air conditioner, but requires that it be supplemented with efficiency upgrades such as insulating air ducts and attics — which may ultimately be more costly than the heat pump route.
“I don’t think most people understand that these units exist, and they’re kind of plug and play with the AC,” said Vespa.