The Latest Trending Economic, Environmental and Infrastructure News Curated for You by The Balmoral Group
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Happy Friday!
Good Afternoon Readers,
Happy Valentine's Day, hope everyone is enjoying the day and weekend to come! February is also Florida Hiking Trails month, a fantastic time to fall in love with the great outdoors as hiking is a perfect way to connect with nature by exploring local wildlife, and staying active whether solo, or with a group of friends!
Exciting company news surrounded one of our own Australian Economists - Edwin Chihava, and Principle - Valerie Seidel in attending the 69th annual AARES (Australasian Agriculture and Resource Economics Society) conference this past week in Brisbane, sharing in dialogue about solutions to improving the Great Barrier Reef, market incentives to improve natural capital and biodiversity in agriculture, and more. Great to catch up with friends old and new like Andrew Buckwell, Gillian Mayne, John Rolfe, and Alan Renwick. Lots of exciting work occurring in this space!
In this edition, we bring you articles on the recent rollback of NEPA regulations, updates to U.S. home insurance premiums and policies, Department of Defense project labor agreements (PLAs), fossil fuel industry news, a report on global climate updates, and a recent study on remote sensing agricultural film mapping.
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Have a great weekend!
Executive Order Challenges NEPA Regulations' Future
On January 20, President Trump issued an Executive Order titled "Unleashing American Energy," which revoked President Jimmy Carter's 1977 Executive Order 11991. This 1977 order had granted the Council on Environmental Quality (CEQ) to establish regulations implementing the National Environmental Policy Act (NEPA). The revocation raises questions about the status of existing NEPA regulations, which have guided federal agencies and courts since their adoption in 1978. The new Executive Order directs the CEQ to propose rescinding current NEPA regulations by February 19, and to provide guidance to federal agencies on NEPA implementation. It also mandates the formation of a working group to revise agency-level NEPA procedures. Environmental Law Institute.
Implications of Coverage Reduction in High-Risk Areas
Weather patterns responsible for informing the risk models are becoming increasingly unreliable and the result is pricing uncertainty in the insurance markets – about a $100 billion underwriting loss. Insurers have typically responded by reducing coverage in markets exposed to extreme weather events, but increasing premiums deter consumers from appropriate coverage; this creates insurance deserts or areas deemed high risk. Reduced coverage leads to secondary effects including diminished mortgage access, climate-related migration and undermining economic growth. New trends in insurance are emerging including parametric insurance and improvements in forecasting and migration using AI and geospatial data in combination with nature-based solutions to reduce ambient temperatures. Read More at World Economic Forum
DOD Dropping Contractor PLA Requirements
The Department of Defense (DOD) has been instructed to remove language requiring project-labor agreements (PLAs) in all upcoming and existing contracts of more than $35 million. The Biden administration had mandated PLAs, which generally favor union labor, to be used on most federal projects. This change for DOD contractors does not currently affect PLAs in the general federal construction marketplace. Read more here.
Coal Ashe Waste from MidAmerican Coal Plants Poses Immediate and Long-Term Health Threat to Iowans
Analysis from the Interdisciplinary Environmental Clinic at Washington University highlights how toxins from MidAmerican Energy’s coal ash waste pose a health threat to Iowans. The analysis shows groundwater contamination from coal ash waste around five coal plants MidAmerican have in Iowa. This contamination includes several toxic heavy metals and pollutants, including arsenic, radium, and lithium. The Iowa Environmental Council is saying MidAmerican must take responsibility for this pollution as these substances released into the environment can lead to health problems for the surrounding area. Read more here and here.
Oil and Gas Industry Representative Nominated as Director of Bureau of Land Management
Fossil fuel lobbyist and president of the Colorado-based oil industry trade group Western Energy Alliance, Kathleen Sgamma has been nominated to oversee the Bureau of Land Management (BLM). Sgamma has been an advocate for the oil and natural gas industry, representing a change from former Director Tracy Stone-Manning, who put conservation on equal footing as other uses of the 245 million acres of U.S. public lands that BLM manages. Opponents are concerned that this move threatens public lands which belong to the American people, as well as facilitate additional drilling as encouraged in the Trump Administration's policies. Proponents see the nomination as a way to balance multiple uses for public lands. AP News.
2025 Starting with new Warmest January on Record
According to data from NOAA’s National Centers for Environmental Information, the average global land and ocean surface temperature in January 2025 was 2.39°F/1.33°C higher than the 20th century average, breaking the previously set 2024 record by .05°F/.03°C. The new January record is of particular note as it happened during a La Nina episode, which is typically the cold phase of the El Nino Southern Oscillation, where global temperatures tend to be cooler than normal. Other notable climate events include artic sea ice coverage being the second lowest ever recorded, and global tropical cyclones for the month numbering under the average seen. Read more here.
Challenges and Future Directions in Large-Scale, High-Precision Agricultural Film mapping
A recent study by the Institute of Geographic Sciences and Natural Resources Research explored the complexities of mapping agricultural films, such as plastic greenhouses and plastic-mulched farmland. While these films enhance crop productivity, they pose environmental concerns necessitating accurate mapping for effective management. The study highlighted challenges including the diversity of film types and coverage durations. Through analysis, the study observed growing research interest in the field but also emphasized the need for advanced remote sensing data techniques to move studies such as this forward. Read more here.
How Minnesota Peatlands Can Help Fight Climate Change
A scientific report by The Nature Conservancy in Minnesota (TNC) documents an analysis of Minnesota’s 6 million acres of peatlands and a collaborative approach to protecting and restoring peatlands as a way to alleviate the effects of climate change. Peatlands are known for their carbon benefits. In addition, they support plant biodiversity, provide wildlife habitat, offer flood protection and ensure access to fresh water for people and nature. Nonetheless, some of Minnesota’s peatlands were ditched and drained for agriculture, forestry and other land uses. These are causing substantial climate impacts according to the report. Read more here.
Data Visualization of the Week
U.S. Insurance Rates Increase by Double Digits for 2nd Consecutive Year
According to S&P Global Market Intelligence, US homeowner insurers have increased premium rates by double-digits over the past two years. The National calculated weighted average effective rate increase was 10.4%; in the previous year the increase was 12.7%. 33 states reported double-digit effective rate increases in 2024. Florida was among the states with the lowest calculated weighted average increase in 2024 at 1.0%, however the calculation does not include any changes by Citizens Property Insurance Corp. Citizens is the largest homeowner’s underwriter in the Sunshine State and previously sought a 13% average increase for 2025, however last week Governor DeSantis indicated Citizens would decrease by an average of 5.6% statewide. Read More at S&P Global.
Click the visual below for more information.
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