News from Novi: 10 Headlines that Stood Out to Us this Week

May 2

Issue 2 – Week of April 28th

1 - Trump dismisses scientists writing Key Climate Report

On April 28, the Administration dismissed the scientists working on the newest version of the National Climate Assessment, a congressionally mandated report. Early indications are that the Administration will refill the roles with their preferred scientists, while some dismissed scientists pledged to continue to undertake the work in their personal capacities.

NOVI TAKE: No (good) policy can be created without facts to base it on, even where people hold different values and priorities. Undercutting the science prevents the opportunity for such compromise.

2 - JPMorgan Touts Huge Returns Tied to Weather-Shock Preparations

According to JPMorgan Chase & Co, the private sector is leaving large returns on the table by not spending enough on adaptation. Despite evidence that temperatures are expected to double the critical threshold (1.5 degrees Celsius), a lack of private capital in resiliency investments continues. However, JPMorgan estimates if the investing is done correctly, you could see a return over 4000%.

NOVI TAKE: If you want to make money, bet on things that are inevitable.

3 - Debate over carbon capture divides Louisiana GOP

On Tuesday the Louisiana House voted down legislation that would have tightened regulations for carbon capture projects, demonstrating a rising debate amongst Republicans over whether to embrace the technology.

NOVI TAKE: All politics are local, and CCS needs to ensure the communities surrounding projects – whether they be red or blue – are partners in the projects.

4 - Utility official goes to bat for embattled DOE loan office

An official from Georgia Power, a subsidiary of Southern Company, told the House Science Energy Subcommittee to support the DOE’s loan program in the face of increasing scrutiny from the Trump Administration. Calling the program a “win, win, win,” the testimony centered on the point that not enough private capital is flowing to finance the amount of infrastructure needed by utilities to deliver on energy demand – a key goal of the Administration.

NOVI TAKE: Investment in capital intensive energy projects requires the type of risk tolerant financing that LPO is intended to provide and helps fulfill Trump Administration aspirations regarding U.S. energy dominance.

5 - Republicans on the doorstep of a massive regulatory overhaul

Republicans have proposed the REINS (Regulations from the Executive in Need of Scrutiny) Act that would overhaul the federal regulatory process. It has made its way through the House before but Republican leaders hope this time they can get it through the Senate using the Reconciliation process.

NOVI TAKE: This seems to blatantly run afoul of the Byrd Rule (the Budget Act) , which requires the Senate Parliamentarian to only allow budget impactful measures in the Budget bill.

6 - The House strikes a blow against California in a fight of EVs

The House voted to reverse 3 federal waivers that were granted to California to set vehicle pollution standards. The Senate now appears to be positioning itself to follow suit, ignoring the positions of the General Accounting Office and the Senate Parliamentarian that this is not allowable under the Congressional Review Act.

NOVI TAKE: This would be a bold move to ignore the Parliamentarian, possibly foretelling an increasing willingness on the part of Republicans to ignore the Senate’s traffic cop.

7 - 2 former DOE loan chiefs launch firm to boost clean energy

As the future of the DOE’s Loan Program Office is up in the air, the head under Biden’s administration has partnered with the head under Obama’s administration to create a firm to help clean energy companies scale.

NOVI TAKE: Worth watching what could be a very promising development. Brings LPO know-how to private sector developers of new companies and technologies.

8 - The evolving symbiosis between utilities and hyperscalers

At a panel at BloomberyNEF Summit this week, it was observed that the relationship between utilities and hyperscalers is becoming a symbiotic one. The hyperscalers have big power teams that can be very helpful to the utilities as they try to scale their infrastructure to support rising demand.

NOVI TAKE: No surprises here - hyperscalers are the biggest influence in terms of what will meet new demand.

9 - Trump’s first-term pick to run the National Science Foundation quits: ‘I have done all I can’

The head of the NSF stepped down, saying he thinks it is time to pass the baton to other leadership. This comes as the Administration has slashed grants and staff at NSF, as well as placing the Foundation in a political tug-of-war by virtue of several Executive Orders.

NOVI TAKE: Again, if the science isn’t allowed to discover the facts, it will be very hard to find durable solutions to climate and energy.

10 - SALT Republicans to huddle with Johnson on key Trump agenda sticking point

House Republicans are set to begin discussions regarding the state and local tax (SALT) deduction cap. Republicans that come from high-tax blue states (i.e,, NY, NJ, and CA) have made it clear that an increase in deduction cap is an absolute requirement for their vote for the reconciliation bill.

NOVI TAKE: Whether these members getting the SALT tax deduction raised in a way that can still draw the votes of fiscal conservatives may be determinative regarding the fate of the entire bill – and may provide the “win” that allows these same moderates to forego support for IRA energy tax credits.

And in the category of “this one goes to 11!”

I know why Jalen Hurts is mad at Trump - by Emily Atkin

The author speculates that the Super Bowl winning quarterback neglected to show at the White House at least partially because he is worried about dangerous heat in Philly schools and upset with the President’s climate positions.

NOVI TAKE: We’ve spent time in Philly – don’t mess with the Eagles….

Tatjana Vujic