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On the reconciliation bill, power plant regulations, and Climate.gov
Current conditions: Eight to 12 inches of rain could fall in Texas and the southern Plains • Air quality alerts are in place today for the New York metro region due to wildfire smoke from Canada • Parts of Europe will see temperatures up to 50 degrees Fahrenheit above normal on Thursday and Friday, with highs approaching 100 degrees in Florence, Italy.
The Senate Energy and Natural Resources Committee released its take on the Republican reconciliation bill on Wednesday afternoon, with boasts of “repealing billions in unspent Green New Deal handouts.” Its proposals include:
The draft also includes the details of Republican Senator Mike Lee’s latest proposal to sell off millions of acres of public lands to finance President Trump’s tax cuts. Specifically, the proposal would require the Department of the Interior and the Forest Service to make the “prudent sale” of 0.5% to 0.75% of their lands in 11 western states for “housing, increased timber sales, geothermal leasing, and compensation of states and localities for the cost of wind and solar projects on federal land.” The states named for the selloffs include Alaska, Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming, with Montana — home of Republican Representative Ryan Zinke, who opposed a similar proposal in the House — notably absent from the list.
You can read a section-by-section breakdown of the rest of the ENR’s proposals here.
On Wednesday, the Environmental Protection Agency moved to retract Biden-era regulations on fossil fuel-fired power plant emissions on the grounds that the plants don’t cause or contribute “significantly” to air pollution. EPA’s proposed rule specifically suggests that power plant pollution makes up merely a “small and decreasing part of global emissions,” and therefore does not require regulation under the Clean Air Act.
But as my colleague Emily Pontecorvo reports, electricity usage produces 25% of U.S. greenhouse gas emissions each year, and accounted for 5% of the total climate pollution worldwide over the past 30 years — making U.S. power plants the world’s sixth biggest CO2 emitter if they were their own country. The administration’s claim that power plants make up only a small portion of global emissions and thus aren’t worth addressing is akin to “a five-alarm fire that could be put out if you send out all the trucks, and you don’t send any of the trucks because no one truck could put the fire out by itself,” David Doniger, a senior attorney and strategist at the Natural Resources Defense Council, told Emily. “We just think that is a wacky reversal and a wacky interpretation of the Clean Air Act.”
Late last month, the Trump administration fired the entire staff of Climate.gov, the main website of the National Oceanic and Atmospheric Administration’s Climate Program Office, The Guardian reports. The website had a staff of “about 10,” but it also received editorial content from NOAA scientists in other departments. Climate.gov described its mission as “climate communication, education, and engagement,” but it also took pains to be “politically neutral, and faithful to the current state of the sciences,” The Guardian writes. “It’s targeted, I think it’s clear,” said Tom Di Liberto, a former NOAA spokesperson who was fired earlier this year. “They only fired a handful of people, and it just so happened to be the entire content team for Climate.gov. I mean, that’s a clear signal.”
The World Bank announced Wednesday that it will end its longtime ban on financing nuclear energy projects. “We will support efforts to extend the life of existing reactors in countries that already have them, and help support grid upgrades and related infrastructure,” World Bank President Ajay Banga wrote in an email to staff, per the Financial Times. Though the development bank’s ban has only been formally in place since 2013, it hasn’t funded a nuclear project since 1959. “In the decades since, a few of the bank’s major funders, particularly Germany, have opposed its involvement in nuclear energy,” The New York Times notes, although both Germany and the Trump administration have recently pivoted toward more pro-nuclear positions. In his memo, Banga added that the bank’s ban on funding oil and gas projects, which has been in place since 2017, will also be reconsidered.
Amazon on Wednesday announced a deal to buy enough power from Pennsylvania nuclear plant operator Talen Energy “to sustain a midsize city for years,” Barron’s reports. The agreement will see Talen supplying Amazon with electricity “for operations that support AI and other cloud technologies at Amazon’s data center campus,” while maintaining its “ability to deliver to other sites throughout Pennsylvania,” Talen said in its own announcement, with the companies also agreeing to explore building a new small modular reactor in the state.
The news comes against the backdrop of Congress’ efforts to eliminate the Inflation Reduction Act’s clean energy tax credits, even as tech companies such as Amazon, Microsoft, and Google continue to pursue ambitious net-zero energy goals. “There’s little doubt the tech companies would prefer an abundant supply of cheap, clean energy,” my colleague Katie Brigham wrote in her recent analysis. “Exactly how much they’re willing to fight for it is the real question.” Amazon’s deal with Talen for nearly 2 gigawatts of nuclear power through 2042 follows Meta signing a nuclear agreement with Constellation Energy last week and Microsoft partnering with Constellation to reopen Three Mile Island last year.
Tesla
“Tentatively, June 22.” —Elon Musk, responding on Twitter to a question about the public launch date of the self-driving Tesla Cybercab robotaxi in Austin, although he added, “We’re being super paranoid about safety, so the date could shift.”
Editor’s note: This story has been updated to correct the level of rescissions from LPO’s budget.
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On Trump’s ‘windmill’ ban, FEMA turnover, and PNW power
Current conditions: Physical activity is “discouraged” at the Grand Canyon today as temperatures climb toward 110 degrees Fahrenheit • Tropical Storm Wutip could dump 7 inches of rain in six hours over parts of Vietnam • Investigators are looking into whether this week’s triple-digit heat in Ahmedabad, India, was a factor in Thursday’s deadly plane crash.
Noah Buscher/Unsplash
President Trump said Thursday that his administration is “not going to approve windmills unless something happens that’s an emergency.” The comments — made during the White House East Room signing of legislation overturning California’s authority to set its own car pollution standards — were Trump’s clearest confirmation yet of my colleague Jael Holzman’s reporting, which this week found that “the wind industry’s worst fears are indeed coming to pass.” As Jael went on in The Fight, the Fish and Wildlife Service and the U.S. Army Corps of Engineers have “simply stopped processing wind project permit applications after Trump’s orders — and the freeze appears immovable, unless something changes.”
Trump justified the pause by adding that “we’re not going to let windmills get built because we’re not going to destroy our country any further than it’s already been destroyed,” repeating his long-held grievance that “you go and look at these beautiful plains and valleys, and they’re loaded up with this garbage that gets worse and worse looking with time.” Trump’s aesthetic objections have already blocked at least three wind projects in New York alone — a move that has impacts beyond future energy generation, Jael further notes. According to the Alliance for Clean Energy New York, the policy has impacted “more than $2 billion in capital investments, just in the land-based wind project pipeline, and there’s significant reason to believe other states are also experiencing similar risks.” Read Jael’s full report here.
Turnover at the Federal Emergency Management Agency continued this week after the head of the National Response Coordination Center — responsible for overseeing the federal response to major storms — submitted his resignation, CBS News reported Thursday. Jeremy Greenberg, who’s worked various roles at FEMA for nearly a decade, will stay on for another two weeks but ultimately depart less than a month into hurricane season. “He’s irreplaceable,” one current FEMA official told CBS News, adding that “the brain drain continues and the public will pay for it.” Greenberg’s resignation follows comments President Trump made to the press earlier this week about the need to “wean off of FEMA” after hurricane season is over in November. “A governor should be able to handle” disaster response, the president told reporters on Tuesday, “and frankly, if they can’t handle it, the aftermath, then maybe they shouldn’t be governor.”
Also on Thursday, President Trump issued a presidential memorandum revoking a $1 billion Biden-era agreement to restore salmon and invest in tribally sponsored clean energy infrastructure in the Columbia River Basin, The Seattle Times reports. Biden’s agreement had “placed concerns about climate change above the nation’s interests in reliable energy sources,” the White House claimed.
The 2023 agreement resulted from three decades of opposition to the dams on the Lower Snake River by local tribes and environmental groups. While the Biden administration hadn’t committed to a dam removal, it did present a potential pathway to do so, since Washington State politicians have said that hydropower would need to be replaced by another power source before they’d consider a dam removal plan. The government’s billion-dollar investment would have aided in the construction of up to 3 gigawatts of alternative renewable energy in the region. Kurt Miller, the CEO of the Northwest Public Power Association, celebrated Trump’s action, saying, “In an era of skyrocketing electricity demand, these dams are essential to maintaining grid reliability and keeping energy bills affordable.” But Washington Senator Patty Murray, a Democrat, vowed to fight the “grievously wrong” decision, arguing, “Donald Trump doesn’t know the first thing about the Northwest and our way of life — so of course, he is abruptly and unilaterally upending a historic agreement.”
Two years after we wrote the eulogy for the Chevrolet Bolt EV — “the cheap little EV we need” — General Motors has announced that it will launch the second generation of the car for the 2027 model year. Though “no other details were provided about this next iteration of the Bolt,” Car and Driver wrote that “we expect it to continue as a tall subcompact hatchback, although it could be positioned as a subcompact SUV like the previous generation's EUV model.” A reveal could be coming in the next several months ahead of a likely on-sale date in mid-2026.
Energy developer Scale Microgrids announced Thursday that its latest round of financing, which closed at $275 million, has brought its total to date to over $1 billion. KeyBanc Capital Markets, Cadence Bank, and New York Green Bank led the round, with Greg Berman, the managing director in KeyBanc Capital Markets Utilities, saying in a statement, “We value our relationship with Scale and congratulate their team as they execute on their strategy to deliver high-quality distributed energy assets to the market.” Scale Microgrids said the financing will “support 140 megawatts of distributed generation projects, including microgrids, community-scale solar and storage, and battery storage installations,” many of which are already under construction in the Northeast and California.
“Our best chance is to get a group of critical mass of Republican senators to go to [Senate Majority Leader John] Thune and [Senate Finance Committee Chair Mike] Crapo and say, You’ve got to change this. We can’t vote for it the way it is.” —Democratic Majority Leader Chuck Schumer in conversation with Heatmap’s Robinson Meyer about the Senate math and strategy behind saving the Inflation Reduction Act.
And more of the week’s top news about renewable energy fights.
1. Jefferson County, New York – Two solar projects have been stymied by a new moratorium in the small rural town of Lyme in upstate New York.
2. Sussex County, Delaware – The Delaware legislature is intervening after Sussex County rejected the substation for the offshore MarWin wind project.
3. Clark County, Indiana – A BrightNight solar farm is struggling to get buy-in within the southern region of Indiana despite large 650-foot buffer zones.
4. Tuscola County, Michigan – We’re about to see an interesting test of Michigan’s new permitting primacy law.
5. Marion County, Illinois – It might not work every time, but if you pay a county enough money, it might let you get a wind farm built.
6. Renville County Minnesota – An administrative law judge has cleared the way for Ranger Power’s Gopher State solar project in southwest Minnesota.
7. Knox County, Nebraska – I have learned this county is now completely banning new wind and solar projects from getting permits.
8. Fresno County, California – The Golden State has approved its first large-scale solar facility using the permitting overhaul it passed in 2022, bypassing local opposition to the project. But it’s also prompting a new BESS backlash.
A conversation with Robb Jetty, CEO of REC Solar, about how the developer is navigating an uncertain environment.
This week I chatted with REC Solar CEO Robb Jetty, who reached out to me through his team after I asked for public thoughts from renewables developers about their uncertain futures given all the action in Congress around the Inflation Reduction Act. Jetty had a more optimistic tone than I’ve heard from other folks, partially because of the structure of his business – which is actually why I wanted to include his feelings in this week’s otherwise quite gloomy newsletter.
The following conversation has been lightly edited for clarity. Shall we?
To start, how does it feel to be developing solar in this uncertain environment around the IRA?
There’s a lot of media out there that’s oftentimes trying to interpret something that’s incredibly complex and legalese to begin with, so it’s difficult to really know what the exact impacts are in the first place or what the macroeconomic impacts would be from the policy shifts that would happen from the legislation being discussed right now.
But I’ll be honest, the thing I reinforce the most right now with our team is that you cannot argue with solar being the lowest cost form of electrical generation in the United States and it’s the fastest source of power generation to be brought online. So there’s a reason why, regardless of what happens, our industry isn’t going to go away. We’ve dealt with all kinds of policy changes and I’ve been doing this since 2002. We’ve had lots of changes that have been disruptive to the industry.
You can argue some of the things that are being discussed are more disruptive. But there’s lots of things we’ve faced. Even the pandemic and the fallout on inflation and labor. We’ve navigated through hard times before.
What’s been the tangible impact to your business from this uncertainty?
I would say it has shifted our focus. We sell electricity to our customers that are both commercial customers, using that power behind the meter and on site for their own facilities, or we’re selling electricity to utilities, or virtually through the grid. Right now we’ve shifted some of our strategy toward the acquisition of operating assets instead of buying projects from other developers that could be more impacted by the uncertainty or have economics that are more sensitive to the timing and uncertainty that could come out of the policy. It’s had an impact on our business but, back to my earlier comment, the industry is so big at this point that we’re seeing lots of opportunity for us to provide value to an investor.
As a company that works in different forms of solar development – from small-scale utility to commercial to community solar – do you see any changes in terms of what projects are developed if what’s in the House bill becomes law?
I’m not seeing anything at the moment.
I think most of the activity I’ve been involved in is waiting for this to settle. The disruption is the volatile nature, the uncertainty. We need certainty. Any business needs certainty to plan and operate effectively. But I’m honestly not seeing anything that’s having that impact right now in terms of where investment is flowing, whether its utility scale to the smaller behind-the-meter commercial scale we support in certain markets.
We are seeing it in the residential side of the solar industry. Those are more concerning, because you only have a short amount of time to claim the [investment tax credit] ITC for a residential system.