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Trump’s plan for rising energy costs: Pump oil, make data centers pay

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Trump’s plan for rising energy costs: Pump oil, make data centers pay

Energy affordability was in the spotlight during President Trump’s lengthy and at times rambling State of the Union address Tuesday evening as the president promised to bring down electricity prices in an effort to assuage voter concerns about rising costs.

The president announced a new “ratepayer protection pledge” to shield residents from higher electricity costs in areas where energy-thirsty artificial intelligence data centers are being built. Trump said major tech companies will “have the obligation to provide for their own power needs” under the plan, though the details of what the pledge actually entails remain vague.

“We have an old grid — it could never handle the kind of numbers, the amount of electricity that’s needed, so I am telling them they can build their own plant,” the president said. “They’re going to produce their own electricity … while at the same time, lowering prices of electricity for you.”

The announcement comes as polling shows Americans are dissatisfied with the economy and concerned about the cost of living. Experts on both sides of the political spectrum have said the energy affordability issue could translate to poor outcomes for Republicans in the midterm elections this November, as it did in a few key races in New Jersey, Virginia and Georgia last year.

While Trump has focused on ramping up domestic production of oil, gas and coal, residential electric bills have been soaring — jumping from 15.9 cents per kilowatt-hour in January 2025 on average to 17.2 cents at the end of December, according to the U.S. Energy Information Administration.

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Through one year into his second term as president, Trump has vastly changed the federal landscape when it comes to energy and the environment, reversing many of the efforts made by the Biden administration to prioritize electrification initiatives and investments in renewable energy via the Inflation Reduction Act and Bipartisan Infrastructure Law.

Among several changes, Trump’s administration has slashed funding for solar programs, ended federal tax credits for electric vehicles and canceled grants for offshore wind power — even going so far as to try to halt some such projects that were nearing completion along the East Coast.

Trump has also championed fossil fuel production and on Tuesday doubled down on his “drill baby drill” agenda, touting lower gasoline prices, increased production of American oil and new imports of oil from Venezuela.

Many of the president’s efforts are designed to loosen Biden-era regulations that he has said were burdensome, ideologically motivated and expensive for taxpayers.

Trump has taken direct aim at California, which has long been a leader on the environment. Last year, the president moved to block California’s long-held authority to set stricter tailpipe emission standards than the federal government — an ability that helped the state address historical air quality issues and also underpinned its ambitious ban on the sale of new gas-powered cars in 2035.

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Trump also slashed $1.2 billion in federal funding for California’s effort to develop clean hydrogen energy while leaving intact funding for similar projects in states that voted for him. In November, his administration announced that it will open the Pacific Coast to oil drilling for the first time in nearly four decades, a move the state vowed to fight.

But perhaps no issue has come across voters’ kitchen tables more than energy affordability.

So far this term, Trump has canceled or delayed enough projects to power more than 14 million homes, according to a tracker from the nonprofit Climate Power. The group’s senior advisor, Jesse Lee, described the president’s data center announcement as a “toothless, empty promise based on backroom deals with his own billionaire donors.”

“Making it worse, Trump is continuing to block clean-energy production across the board — the only sources that can keep up with demand, ensure utility bills don’t keep skyrocketing, and prevent massive new amounts of pollution,” Lee said in a statement.

Earlier this month, Trump’s Environmental Protection Agency repealed the endangerment finding, the U.S. government’s 2009 affirmation that greenhouse gases are harmful to human health and the environment, in what officials described as the single largest act of deregulation in U.S. history. The finding formed the foundation for much of U.S. climate policy. The EPA also loosened guidelines around emissions from coal power plants, including mercury and other dangerous pollutants.

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The president’s environmental record so far is “written in rollbacks that put the interests of some corporate polluters above the health of everyday Americans,” read a statement from Marc Boom, senior director of the Environmental Protection Network, a group composed of more than 750 former EPA staff members and appointees.

Further, Trump has worked to undermine climate science in general, often describing global warming as a “hoax” or a “scam.” During his first year in office, he fired hundreds of scientists working to prepare the National Climate Assessment, laid off staffers at the National Oceanic and Atmospheric Administration and dismantled the National Center for Atmospheric Research, one of the world’s leading climate and weather research institutions, among many other efforts.

In all, the administration has taken or proposed more than 430 actions that threaten the environment, public health and the ability to confront climate change, according to a tracker from the nonprofit Natural Resources Defense Council.

The opposition’s choice for a rebuttal speaker is indicative of how seriously it is taking the issue of energy affordability: Virginia Gov. Abigail Spanberger focused heavily on energy affordability during her campaign against Republican Lt. Gov. Winsome Earle-Sears last year, including vows to expand solar energy projects and technologies such as fusion, geothermal and hydrogen. Virginia is home to more than a third of all data centers worldwide.

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Gas is $10 a gallon at a Big Sur station. The owner explains why his prices can’t go higher

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Gas is  a gallon at a Big Sur station. The owner explains why his prices can’t go higher

The owner of Gorda by the Sea, the lone gas station for several miles in any direction from this remote, scenic hamlet in Big Sur, is charging $9.99 for a gallon of gas because, well, that’s as high as the digital numbers on the gas pumps allow.

“The software only goes to $10,” said Leo Flores, owner of the gas station and mini-market. “I know, sometimes someone wants to make a good story because of it, but we have to tell you why.”

As the lone gas station for at least 12 miles along Highway 1, the service station often prompts drivers to gasp or clutch their wallets at the sight of a $9.99 price tag for a gallon, but Flores insists he’s not trying to price-gouge his customers. In fact, he’s worried that if gas prices go much higher, it might put him out of business.

“People think you make money, but I’m not,” he said in an interview with The Times.

Motorists across the country have been griping since gasoline prices began to surge last month after the start of the U.S.-Israeli war on Iran, which restricted the flow of oil from key oil-producing countries. Flores’ business is an example of how sky-rocketing fuel prices are having ripple effects throughout the economy.

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The isolated gas station has been featured in the news in the past for its high prices, but Flores, who has owned the station for the last 30 years, said there’s a simple reason why the cost is so high.

“We run this place on generators,” he said. “The generators run on five to six gallons of gasoline every hour.”

It’s not just the gas station that runs on generators, he said. The small oceanside community surrounding the gas station — the mini-market, the cafe, the hotel and nearby cabins — is owned by Flores and runs on generators because there is no access to an outside electrical plant.

“When I explain why to people, they’re happy to pay what I ask them,” Flores said. “It costs me more to make my own electricity.”

According to AAA, as of Friday the national average cost of a gallon of regular gas is up to $4.09, and in California it’s $5.86. In Los Angeles County it’s even higher — about $6 a gallon. At gas stations around Gorda by the Sea, the average cost also sits at $6, according to AAA.

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Flores said he has considered using solar panels to generate electricity, but the initial cost is high. To raise his gas prices any higher, he’d have to buy new pumps, an investment he’s not sure he could afford now.

High prices are not his only worry. The entire hamlet can operate only if Flores’ regular gasoline deliveries make it through on Highway 1 every two weeks.

When the highway shut down for three years because of landslides starting in 2023, he said, he struggled to get gas deliveries to run his generators and survived on only 10% to 20% of the business he normally sees. He barely made it, he said, until the highway reopening in January.

“It’s a big deal,” he said. “If the highway is closed in both directions, I’m screwed.”

Flores complained that no one pays attention to his struggles when Highway 1 closes, but it’s another story when gas prices spike.

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“Why when the highway opens and I raise the price everyone points at me like I’m the bad guy?”

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President Trump bashed State Farm on social media: Why it didn’t come out of the blue

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President Trump bashed State Farm on social media: Why it didn’t come out of the blue

Victims of the January 2025 wildfires unhappy with how insurers have handled their claims have filed lawsuits, protested and complained to local and state officials.

This week, they got support from an unexpected ally: President Trump.

“It was brought to my attention that the Insurance Companies, in particular, State Farm, have been absolutely horrible to people that have been paying them large Premiums for years, only to find that when tragedy struck, these horrendous Companies were not there to help!” Trump posted on Truth Social.

He also asked U.S. Environmental Protection Agency Administrator Lee Zeldin to give him a list of insurers that “acted swiftly, courageously, and bravely” to fulfill their legal obligation and another list of those that were “particularly bad.”

State Farm, California’s largest home insurer, is under investigation for how it has handled January 2025 wildfire claims. In a statement responding to the president’s post, it said it has received 13,700 claims, paid out $5.7 billion and expects total payments could reach $7 billion.

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“Our leadership position in the California homeowners insurance marketplace means State Farm General Insurance Company — the State Farm company that provides homeowners insurance in California — insured more people impacted by this disaster than anyone else,” its statement read.

Tuesday’s post had its origins in a Feb. 4 visit that Zeldin and Small Business Administrator Kelly Loeffler made to the Los Angeles area, where they met with L.A. Mayor Karen Bass, Los Angeles County Supervisor Kathryn Barger and Pacific Palisades fire victims, among others.

The visit was prompted by Trump’s criticism of the slow rebuilding process and by a Trump executive order allowing victims of the Los Angeles wildfires to rebuild without having to deal with “unnecessary, duplicative, or obstructive” permitting requirements.

Aerial image of a neighborhood along Rambla Vista in Malibu taken in December.

(Allen J. Schaben / Los Angeles Times)

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1 A view of destroyed beach-front properties remaining construction-free

2 Aerial image of the remnants of an oceanfront neighborhood

1. A view of destroyed beachfront properties remaining construction-free after the Palisades fire destroyed them last year in Malibu. 2. Aerial image of the remnants of an oceanfront neighborhood in Malibu taken in December after the massive Palisades fire destroyed hundreds of homes and businesses last year. (Allen J. Schaben / Los Angeles Times)

At the time of the order, Bass dismissed it as a “meaningless political stunt,” saying the president has no authority over local permitting but could assist by speeding up Federal Emergency Management Agency funding.

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The American Property Casualty Insurance Assn. industry trade group, in its response to Trump’s post, continued to point fingers at the government. It noted the fires were the third-worst natural disaster in American history in terms of insured losses, at $40 billion.

“Permitting can be a frustrating process, and it can always be improved,” it said in a statement. “Los Angeles has been approving permits three times faster than it was before the fire. However, permit issuance continues to lag.”

Barger, whose district includes the Eaton fire zone in and around Altadena, said this week that she defended the local permitting process to Zeldin. But said she also pointed out complaints about how insurers, and State Farm in particular, have handled claims.

“Many people feel that the insurance industry has let them down, and the number one company that we hear about is State Farm,” she said. “Obviously, Administrator Zeldin met with the president and outlined what I told him.”

Bass, who also spoke on the phone with Trump last month, issued a statement saying she “recently requested that the President intervene with the insurance companies to ensure they pay claims so that survivors can afford to rebuild.”

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“I want to thank President Trump and EPA Administrator Zeldin for taking action and working alongside us to help survivors get the support they need and deserve,” she said.

A White House official said Friday that the EPA was working to produce the list of insurers “as quickly as possible for the president” and the “best way for insurance companies to help is to immediately pay out what they owe so victims can rebuild their lives.”

An aerial view of construction crews rebuilding homes that were destroyed

Construction crews rebuild homes that were destroyed in the Eaton fire in Altadena on March 20.

(Allen J. Schaben / Los Angeles Times)

“Administrator Zeldin, on behalf of the president, is going to hold insurance companies accountable to the great people of California,” the official said.

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The federal government has played a large role in the recovery, including leading the debris cleanup and, as of February, approving 12,600 Small Business Administration loans to fire victims totaling $3.2 billion.

However, a 1945 federal law, the McCarran-Ferguson Act, delegates authority to regulate the insurance industry primarily to individual states.

Joy Chen, executive director of Eaton Fire Survivor’s Network, which represents thousands of fire victims across Los Angeles, said her group believes the federal government has a larger role to play.

“President Trump has the opportunity to restore accountability to this broken system. Federal agencies have the tools to act,” said Chen, who has been sharply critical of State Farm’s claims practices and how California Insurance Commissioner Ricardo Lara has handled complaints against the company.

She specifically called for the Federal Trade Commission to examine “deceptive sales practices” that have left Americans underinsured and for the Department of Justice to investigate “industrywide claims practices that delay, deny or underpay payments owed to policyholders.”

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Lara has defended his treatment of the company, noting regulators opened a probe of State Farm’s claims practices last year.

Martin Grace, a University of Iowa business professor and expert on insurance regulation, said that aside from the “bully pulpit” Trump exercised in his social media post, the federal government’s hands are largely tied.

“He can browbeat people, and Trump’s good at that. And I think the federal government, at one level, only has that. Now, Congress and the president together could say, ‘Listen, we don’t like what the states are allowing insurers to do, and we’re going to change the regulatory system,’” he said.

Grace noted that there was an insurance industry solvency crisis in the 1970s and 1980s that led to a 1990 Congressional report and federal pressure for improved state-level regulation, which was undertaken.

“Congress basically said, ‘Get your act together, or we’re going to take [regulation] back.’” And so the states got together and did a much better job on that,” he said.

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Los Angeles attorney Richard Giller, who represents plaintiffs in lawsuits against insurers, said that the federal government could still take steps to improve the market.

Those might include establishing a federal reinsurance program that shares natural disaster risks with insurers, or covering the risk itself similarly to how the National Flood Insurance Program works.

“The catastrophe insurance industry in California is incredibly broken and needs some serious repair,” he said.

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Video: Skilled Foreign Workers Think About Leaving the U.S.

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Video: Skilled Foreign Workers Think About Leaving the U.S.

These highly skilled, highly educated foreign workers have been documenting the challenges of trying to build a career in the U.S. “If I don’t find a job, I have to leave the country.” “I sent out 907 applications.” “Have I ever truly relaxed in America?” They need an H-1B visa, which is given through a lottery system that allows U.S. companies to hire highly skilled international professionals for up to six years, in industries like tech and medicine. But the Trump administration has made changes to the program, requiring companies to pay a high fee and enforcing new rules that prioritize higher-paid foreign workers, in an effort to make more jobs available to Americans. This has forced some foreigners to rethink their career plans. “I think the U.S. is still the golden standard.” Wen-Hsing Huang came to the U.S. from Taiwan in 2022 for the tech scene, and was hired by Amazon on an H-1B visa. “I want to use my talents to change the world, and I think the United States was the best platform to do that.” Ananya Joshi came from India to attend a master’s program in Chicago in 2022. “So it was actually my my father’s dream that I had inherited because my father couldn’t go because of his financial situation.” Haina, a Chinese national, fell in love with the U.S. while studying in New York. She got her H-1B in 2022. “I remember there were a lot of companies, they would be able to sponsor.” Haina said she’s experienced a recent shift, where it has become harder to find companies that sponsor H-1B visas. “This time when I was job searching, I didn’t realize it could be a deal breaker. I just had my second interview of 2026, and it was a pretty short call.” (Recruiter) “I don’t think we’re eligible or able to do sponsorship for this role at the moment.” “They don’t even really get to know if I’m qualified, am I experienced, or anything. The decision is already made at that point.” “Please, please make sure that the company you’re about to work for has experience handling international hires.” Joshi said a start-up she interned with during grad school rescinded their promise to sponsor her H-1B visa. “Ask for everything in writing. And then there were jobs that were contract jobs. They would just reject me. They would only need people with a green card or a U.S. citizenship.” Even with an H-1B and a six-figure salary, Huang said he felt himself becoming anxious, as tech layoffs ramped up and Trump’s immigration policies kept changing. “I woke up every morning with this knot in my stomach, because my entire life depended on the policy I couldn’t control. The United States seems not very welcoming to immigrants that contribute to this country.” “The signals are, like, pretty clear at this point. They want to make this H-1B, is, like, risky and also, like, harder.” Hello, everyone.” Despite that, Haina says she’s determined to keep looking for a job until she’s forced to leave the country. “The pressure about where I’m going to be in the next of my career or, like, my life. I sort of like lost the ability to enjoy my life or just be happy.” “So I had to leave the U.S. Of course, I expanded my search beyond the U.S. Found a job in Germany.” Joshi packed up her life and started a new role with a European biotech firm in January. “I think I left at a good time, because there would have been more stress. I would have been stuck in a loop.” “It’s an endless cycle of anxiety.” After quitting his job at Amazon, Huang is now back in Taiwan, planning to launch his own company. “To bet on building an A.I. company that gives me complete control over my time, location and future. Staying in the United States is no longer the only way to achieve my American dream.”

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