
AI data centers could drive a new wave of Texas air pollution, report finds
The boom in artificial intelligence (AI) risks filling Texas air with toxins, a report has found.
State regulators are considering proposals for more than 100 new gas power projects — the vast majority of them entirely new plants — to power a new wave of data centers, according to findings published early Wednesday by the Environmental Integrity Project (EIP).
More than 30 have already been permitted in a process that amounts to a 'rubber stamp,' the EIP said.
'To meet its increasing demand for electricity, Texas should be encouraging more clean energy instead of feeding public subsidies to dirty fossil fuels,' Jen Duggan, executive director of the Environmental Integrity Project, said in a statement.
The plants spread across the state but cluster around Houston, the I-35 corridor between Austin and San Antonio and the oilfields of West Texas.
If all are built, they could produce as much pollution each year as another 27 million new cars and trucks — the equivalent of doubling Texas's current motor vehicle fleet, the report found.
Oil and gas pollution includes volatile organic carcinogens such as benzene, asthma-triggering compounds including ozone and nitrogen oxides and lung-burrowing particles like PM 2.5.
The Texas Commission on Environmental Quality, the state's environmental regulator, declined The Hill's request for comment on the analysis.
The report comes in the wake of the failure of a slate bills at the Texas legislature that had sought to restrict the growth of renewables in favor of gas power — an issue that drove an acrimonious inter-party debate within the state's ruling GOP.
One major reason for that failure: the state's insatiable demand for electricity, which the state's grid managers have estimated could double by the end of the decade, largely due to new cryptocurrency miners, data centers and oilfield operations.
In the fight over the renewable restrictions, wind, solar and battery advocates pitched their technologies — which can be installed much faster than gas — as ideal to meet that demand.
'Everything is supposed to be bigger in Texas, but there's no need to go big with gas plant pollution when there are cleaner alternatives,' said Adrian Shelley, the Texas director for civil society group Public Citizen.
'Texas is already number one in clean energy, which helps save the electric grid and reduce consumer costs, so we should rely on clean energy to increase our supply of electricity,' Shelley added.
But with a 'frantic race' to build capacity amid long wait times to connect to the grid, data center developers are increasingly turning to a new wave of privately owned gas plants, according to reporting this week from The Texas Tribune.
One such plant, outside the rapidly growing Central Texas town of New Braunfels, will generate about 1.2 gigawatts of power — about two-thirds as much generation capacity as is needed for the million-plus people of nearby Austin.
But all that power will go entirely to data centers, the Tribune found.
Despite the plants' size — some are large enough to power a medium-sized city — EIP contends that Texas regulators incorrectly classified three of them as belonging to a Clean Air Act category designed for minor sources of pollution.
That would mean that the gas plants will not have to use the best available technology to clean their emissions, causing a greater release of health-harming chemicals.
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Politico
an hour ago
- Politico
A megabill mess and a crypto conundrum
Presented by Editor's note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. Quick Fix Congressional Republicans are about to enter a sudden scramble to advance the centerpieces of their financial policy agenda, and it is quickly becoming messy for the leaders of the two committees in charge. A pair of late-night surprises last week injected fresh uncertainty into the path forward for Republicans' cryptocurrency legislation and Senate Banking Chair Tim Scott's proposal for the GOP's 'big, beautiful bill,' with both efforts now in flux entering a pivotal week on Capitol Hill. Let's start with the megabill. Senate Banking Republicans were dealt a major blow last week when a top official in the upper chamber nixed the core pieces of their plan to cut spending as part of the sweeping tax package that represents President Donald Trump's leading legislative priority. Scott's proposals to zero out CFPB funding, slash some Federal Reserve employees' pay, dissolve the Public Company Accounting Oversight Board and cut Treasury's Office of Financial Research are all ineligible for the filibuster-skirting budget reconciliation process Republicans are using to pass their 'big, beautiful bill' without Democratic votes. The ruling from Senate Parliamentarian Elizabeth MacDonough is now an urgent problem for Scott and his members as GOP leaders try to ram the megabill to the floor in the upper chamber this week. The top three cost-savers in Scott's initial proposal are now off the table for committee Republicans, who are required to find $1 billion in cuts over the next 10 years (a tiny fraction of the overall bill). Several smaller parts of their proposal are still standing, including language that would cut all unobligated funds authorized for a green housing program under the Inflation Reduction Act, delay implementation of a Dodd-Frank provision that allows the CFPB to collect demographic data from lenders and sweep all unused funds from the Securities and Exchange Commission's Technology Reserve Fund. Republicans could seek to salvage some of the axed proposals by scaling them back. Senior GOP members of the Banking panel expressed confidence prior to the parliamentarian's ruling that a narrower cut to the consumer bureau would be able to pass muster if Scott's initial plan didn't fly. 'I would expect we'll find a few billion that will be Byrdable,' said Sen. Kevin Cramer, referring to the so-called Byrd rule that limits what can be included in a reconciliation bill to measures aimed at changing spending or revenue — not policy. Scott said in a statement last week that he remains 'committed to advancing legislation that cuts waste and duplication in our federal government and saves taxpayer dollars.' Changes to the plan will need to come together quickly in the coming days. Republican leaders hope to produce full bill text as soon as today, two people with knowledge of internal deliberations told our Jordain Carney, with the parliamentarian issuing final rulings by the end of Tuesday and a first procedural vote later in the week. While most eyes on Capitol Hill remain fixed on the Senate's broader megabill scramble, there's another drama brewing in the lower chamber over a different part of Trump's agenda: crypto policy. House Republican leaders including Financial Services Chair French Hill are under pressure from Trump and top GOP senators to pass a Senate-approved crypto bill in the coming weeks that would create new rules for dollar-pegged stablecoins. Trump posted on social media last week that the House should 'move LIGHTNING FAST, and pass a 'clean'' version of the legislation — 'NO DELAYS, NO ADD ONS.' But it seems increasingly unlikely that House Republicans, who have their own stablecoin legislation, will want to rubber-stamp the Senate's proposal. Hill spokesperson Brooke Nethercott said last week that the Arkansas Republican looks 'forward to continued collaboration with our members and House leadership as we work toward a path forward' — hardly a warm reception to Trump's demand. It's easy to see why approving the Senate's so-called GENIUS Act isn't appealing to Hill and other House Republicans. They have been working for years on legislation to overhaul how stablecoins are regulated — and while the Senate proposal largely mirrors their bill, some key differences remain. House members likely don't want to roll over and eat a work product from senators who cut a flurry of eleventh-hour deals on new language that was added to the legislation before it hit the floor in the upper chamber. Plus, some House Republicans want to package a stablecoin bill with a much broader crypto market structure overhaul that they fear would be left by the wayside if a stablecoin bill goes to Trump's desk alone. But on the other side of the Capitol, GOP Senators like Scott and Bill Hagerty (R-Tenn.), the bill's lead sponsor, want to notch a win on crypto before the July 4 recess — and they aren't eager to reopen stablecoin negotiations with crypto-friendly Democrats, whose backing is needed to clear the upper chamber's 60-vote threshold. If the House doesn't go along, it could open up a rift between Scott and Hill — who love to tout their collaboration — and, more importantly, anger the Trump team. Some in the Senate hope the Trump factor could put pressure on House Speaker Mike Johnson to take the matter into his hands — and do what the president wants. IT'S MONDAY — Send megabill, crypto and Capitol Hill tips to jgoodman@ Sam Sutton is back this week from a much-deserved break. Send MM tips and pitches to him at ssutton@ Driving the Week Monday … Federal Reserve Vice Chair for Supervision Michelle Bowman speaks about the 'effectiveness of monetary policy during and after the Covid-19 Pandemic' at the International Journal of Central Banking Conference at 10 a.m. … Existing home sales data is out at 10 a.m. … Chicago Fed President and CEO Austan Goolsbee speaks at a Milwaukee Business Journal event at 1:10 p.m. … House Financial Services Chair French Hill speaks at a Brookings Institution discussion about his committee's agenda at 1:30 p.m. … Fed Governor Adriana Kugler speaks at a New York Fed discussion at 2:30 p.m. … Tuesday … Federal Reserve Chair Jerome Powell testifies before House Financial Services at 10 a.m. … The Conference Board's consumer confidence index is out at 10 a.m. … The House Small Business Committee holds a hearing on 'Securing America's Mineral Future' at 10 a.m. … House Financial Services holds a member day hearing at 2 p.m. … The Sfenate Banking Committee holds a hearing on crypto market structure legislation at 3 p.m … The Urban Institute holds a discussion on 'The Past, Present, and Future of Credit Scores in Housing Finance' at 3 p.m. … The Kansas City Fed holds a virtual discussion on 'the current state of the agricultural economy and future prospects' at 4 p.m. … Wednesday … The Bitcoin Policy Institute holds its 2025 policy summit with speakers including White House crypto advisor Bo Hines, Sen. Cynthia Lummis, House Majority Whip Tom Emmer, Rep. Warren Davidson and SEC Commissioner Hester Peirce. … Powell testifies before Senate Banking at 10 a.m. … House Financial Services holds a hearing on 'Reassessing Sarbanes-Oxley' at 10 a.m. … New home sales data is out at 10 a.m. … The Fed meets to discuss proposed revisions to its supplementary leverage ratio standards at 2 p.m. … Thursday … The American Association of Exporters & Importers holds its Conference & Trade Day beginning at 8 a.m. … Initial jobless claims data will be out at 8:30 a.m. … The Washington International Trade Association holds a discussion on 'Congress, Trade & American Competitiveness' at 8:30 a.m. … The Cleveland Fed kicks off its 2025 Policy Summit with speakers including Fed Governor Michael Barr beginning at 9 a.m. … House Financial Services holds a hearing on the CFPB at 10 a.m. … The Securities and Exchange Commission holds a closed meeting at 2 p.m. … Friday … PCE is out at 8:30 a.m. … Fed Governor Lisa Cook participates in a FedListens discussion on issues including inflation and labor market conditions at the Cleveland Fed's 2025 Policy Summit at 9:15 a.m. … The University of Michigan consumer sentiment survey is out at 10 a.m. … Iran fallout — Defense Secretary Pete Hegseth insisted Sunday that U.S. strikes on Iran's nuclear facilities were not intended to bring about regime change in Tehran, our Amy Mackinnon, Joe Gould and Connor O'Brien report. But Hegseth laid out no plans for avoiding a deeper escalation should the country retaliate and said officials didn't yet know the full extent of the damage. —As our Victoria Guida told you in this space on Friday, the conflict in Iran could have economic consequences. In the immediate, Bloomberg reports that U.S. equity futures dropped early Monday in Asia as oil prices climbed: 'The price action reflected typical risk-off positioning, though the moves moderated larger swings when markets initially opened in a sign traders are waiting for further signs of escalation in the conflict.' —One major question looming for energy markets is whether Iran will respond by closing the Strait of Hormuz, a channel through which about a fifth of the world's oil passes. 'Any attempt to close the strait, which connects the Persian Gulf to the Gulf of Oman, would most likely send oil prices soaring,' Rebecca F. Elliott writes in the NYT. It would also inflict severe economic damage in Iran because nearly all of the country's oil exports move through the channel. —For more on the conflict, read Nahal Toosi's 'Compass' column, in which she writes that 'Trump's decision to bomb Iran's nuclear sites this weekend is the latest sign that he's now in a phase where he's willing to take enormous risks with little concern about the blowback.' Taxes Accounting tricks — Tax legislation recently unveiled by Senate Republicans only costs $441 billion when tallied using a novel accounting method requested by the GOP, our Benjamin Guggenheim reports. The new estimate by the Joint Committee on Taxation, which was released late Saturday night, shows how Senate Republicans were able to slash the costs of sweeping tax legislation set to be included in the GOP's sweeping megabill by using a 'current policy baseline' — a never-before-used technique that wipes out the cost of extending existing tax cuts that are set to expire at year's end. 'Revenge tax' latest — From our Doug Palmer: The Trump administration already has the authority to strike back against discriminatory foreign taxes, a senior Treasury official said on Friday, responding to business concerns about a so-called 'revenge tax' working its way through Congress. Trade Team of rivals — Foreign officials, business leaders and advisers involved in the Trump team's trade talks are receiving mixed messages from different parts of the administration, our Daniel Desrochers, Megan Messerly and Ari Hawkins report. 'Their differing approaches have occasionally slowed down progress, the foreign officials say, like when the Commerce Department tightened restrictions on some Chinese technology in May, quickly derailing an agreement with Beijing that was negotiated by Bessent.' At the regulators Trump considers moving some USDA programs to SBA — The Trump administration is weighing whether to transfer some programs from USDA's Rural Development agency to the Small Business Administration, according to documents obtained by our Marcia Brown.


Politico
an hour ago
- Politico
Capitol agenda: How Johnson may block an Iran rebuke
President Donald Trump already had Republicans scrambling to get their 'big, beautiful bill' to his desk by next week. Now he's got Congress grappling with something even bigger: the aftermath of his airstrikes on Iran. The issue could come to a head with a vote as soon as this week. Sen. Tim Kaine's (D-Va.) resolution requiring congressional approval for military action in Iran ripens on Friday, but is expected to be on the floor sooner with the megabill set to eat up the back half of the week. Senate Minority Leader Chuck Schumer is pushing to move up the vote. He's urging his party to support the measure, but Democrats expect to lose the vote of Sen. John Fetterman (Pa.). On the GOP side, keep an eye on Sens. Rand Paul (Ky.) and Lisa Murkowski (Alaska), who said Sunday on X 'Congress alone' has the power to authorize war. Lawmakers in both chambers are set to receive briefings Tuesday on the situation in Iran; they were on the books before the strikes. In the House, Reps. Thomas Massie (R-Ky.) and Ro Khanna's (D-Calif.) war powers resolution, which would block U.S. involvement in Iran, will not ripen until next week. But House GOP leadership is considering getting ahead of that: Speaker Mike Johnson could move this week to kill the effort with language getting rid of the privileged nature of the resolution, according to a person granted anonymity to relay the private discussions. Trump and GOP leaders are moving to unify the rank-and-file behind Trump's decision to strike, even as Trump openly muses about pursuing regime change in Iran. Take note of Trump's renewed attacks on Massie — a source tells POLITICO it's part of an effort to keep members in line. Adding to the chaos for Republicans is Trump's Sunday evening musing about pursuing 'regime change' in Iran if its current leaders can't 'MAKE IRAN GREAT AGAIN.' 'This is not America First folks,' Massie said in response to Trump's Truth Social post. House Democrats are less unified. Most are questioning the constitutionality of the strike, but the party is split on where to go from there. Rep. Alexandria Ocasio-Cortez (N.Y.) has brought up impeachment. Others, like Rep. Steny Hoyer (Md.), were more supportive of the strike. That could be a problem for Democrats trying to strengthen their opposition. The top Democrats on Foreign Affairs, Intelligence and Armed Services are drafting their own resolution in response to the strikes, according to a person granted anonymity to discuss the plan. There are likely a handful of pro-Israel Democrats who will vote against any war powers resolution. Even if the bill makes it to a House floor vote there likely won't be enough Republicans. What else we're watching: — Megabill's big week: Republicans will hold a closed-door meeting Monday night after votes for leadership to update members on the GOP megabill and its outstanding issues. Full bill text could land Monday, though it may also slip. While the 'big, beautiful bill' could hit the floor as soon as Wednesday, Thursday is looking more likely. — First Dem oversight vote: House Democrats' steering committee will vote this evening on who should be the party's leader on the Oversight Committee, followed by a full caucus vote Tuesday. California Rep. Robert Garcia, 47, is seen as the favorite in a field split along generational lines. He's running against Reps. Jasmine Crockett of Texas, 44; Kweisi Mfume of Maryland, 76; and Stephen Lynch of Massachusetts, 70. — Slashes to GAO funding: House Republican appropriators are proposing to cut funding for the Government Accountability Office by nearly half. It's the latest in a series of flashpoints between the GOP and the watchdog agency, which has been involved in clashes this year over DOGE, regulatory rollbacks and Trump's incursions into the power of the purse. Meredith Lee Hill, Jordain Carney, Nicholas Wu and Katherine Tully-McManus contributed to this report.


Chicago Tribune
2 hours ago
- Chicago Tribune
Daywatch: Why Illinois' borders are unlikely to change
Good morning, Chicago. The nearly three dozen Illinois counties where a majority of voters in recent years have expressed their desire to leave the Land of Lincoln won't be joining their neighbor to the east anytime soon — or probably ever — regardless of any recommendation from a bistate commission Indiana Gov. Mike Braun signed off on last month to study the issue. While the measure creating the commission sailed through the Republican-dominated Indiana statehouse on its way to the GOP governor's desk, a companion proposal from one of Illinois' most conservative state lawmakers went nowhere in the Democratic-controlled General Assembly before it adjourned its spring session. The disparate responses in Indianapolis and Springfield to the proposed creation of an Indiana-Illinois Boundary Adjustment Commission, described by supporters as a conversation starter but decried by critics as a pointless political stunt, are emblematic of the yawning political divide between the states despite their deep geographic and economic ties. Read the full story from the Tribune's Dan Petrella. Here are the top stories you need to know to start your day, including: what to expect from the heat and humidity today, why the debate over what went wrong at Lincoln Yards continues and the best wine destinations in Evanston. Today's eNewspaper edition | Subscribe to more newsletters | Asking Eric | Horoscopes | Puzzles & Games | Today in History The world grappled yesterday with the United States inserting itself into Israel's war by attacking Iranian nuclear sites, an operation that raised urgent questions about what remained of Tehran's nuclear program and how its weakened military might respond. Experts warned that worldwide efforts to contain the spread of nuclear weapons by peaceful means would be at stake in the days ahead, while fears of a wider regional conflict loomed large. The price of oil rose as financial markets reacted. The multiday stretch of oppressive heat and humid conditions will continue today, with at least one decades-old record broken over the weekend, experts said. Chicago's low temperature Saturday night was a stifling 78 degrees, breaking the June 21 record for minimum temperature. The low was 4 degrees higher than the previous record set in 1923, according to the National Weather Service. Illinois set the tax on vaping products at 15% of the wholesale price about six years ago. The first increase since then kicks in July 1, with the rate going up to 45%. Most tobacco products other than cigarettes, including cigars and chewing tobacco, will also be taxed at 45% of the wholesale price, up from a 36% levy that's been in place for more than a decade. The war of words over what went wrong with developer Sterling Bay's grand vision for its Lincoln Yards development on the North Side continues, even while the city waits to see what will happen with the sprawling site. As Gabriela crossed the stage at her kindergarten graduation in Chicago, she scanned the audience, desperately searching for a familiar face. But her mother was nowhere to be found. Just a week earlier, on June 4, her mother, Wendy Sarai Pineda, 39, was detained by U.S. Immigration and Customs Enforcement outside an office in downtown Chicago during what was supposed to be a routine check-in, while Gabriela was at school. The little girl doesn't understand why her mother vanished and had hoped her mother would be at her graduation, said Camerino Gomez, Pineda's fiance. A new Chicago clinic is providing abortions to patients up to roughly 34 weeks into pregnancy — the only standalone clinic in the Midwest to offer often-controversial terminations in the third trimester and among only a handful that do so nationwide. Jey McCreight underwent hormone replacement therapy and top surgery in their mid-30s to transition into a transmasculine person. They said the medical treatment helped them 'live life to the fullest.' When the U.S. Supreme Court upheld Tennessee's ban on gender-affirming care for minors on Wednesday, McCreight said they were unsurprised, but sad and angry nonetheless. McCreight, 37, joined about 200 others who braved the Saturday afternoon heat to protest the court's decision in U.S. v. Skrmetti. Closure is something we all crave, whether it's the perfect ending to a favorite TV series or a resolution of a real-life relationship. The closure of the long-running Sammy Sosa saga felt like a little of both, part 'Breaking Bad' finale and part end of a nearly three-decade story Paul Sullivan has covered off and on at the Tribune. Now that Sosa is back at Wrigley Field, the story is complete. The air downtown smells of grilled onions, wafting from the flat tops of three Route 66 restaurants that have helped give the small town of El Reno, Oklahoma, about 25 miles west of Oklahoma City, a distinct culinary identity. The governor fired off a message to the White House, outraged that the president had deployed soldiers to an American city. 'I protest against this, and ask the immediate withdrawal of the Federal troops from active duty in this State,' he wrote. It was July 1894. The governor was John Peter Altgeld of Illinois, and the president was Grover Cleveland. The two Democrats were arguing about Cleveland's decision to send the U.S. Army into Chicago during the Pullman strike. George Karzas announced on Instagram Thursday that Gale Street Inn, a neighborhood staple in operation since 1963, was permanently closed, a troubling trend among local restaurants, industry professionals say. He cited staffing shortages as the primary reason for the abrupt closure. 'Hiring and retaining quality staff has proven too tough for too long,' he wrote. 'We are tired of sucking, we have standards you know. But overworking our existing crew is not the answer. There are simply too many of you and not enough of us.' With so much attention paid to Chicago's vibrant wine scene, suburban Evanston may not come to mind as a destination for wine lovers. After all, this lakeside community — home to Northwestern University — was the epicenter of the American temperance movement. Rooted firmly in its Methodist origins, Evanston remained a dry community from the 1850s until 1972, four decades past the repeal of Prohibition.