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Policy Watch

The IRA’s Coming China Change

And more of the week’s biggest news around renewable energy policy.

Trump.
Heatmap Illustration/Getty Images

Sourcing requirements – As we explain in our Q&A today, there’s momentum building in Washington, D.C., to attach new sourcing requirements to an IRA credit for advanced manufacturing known as 45X.

  • 45X is supposed to supercharge production of battery and solar components, as well as key minerals and materials for those components that are largely imported from China or what U.S. trade officials believe are Chinese pass-throughs.
  • Some U.S. companies are now quietly urging Congress to enact a “foreign entity of concern” requirement to 45X that would essentially stop battery and solar manufacturing plants with Chinese business involvement from qualifying.
  • Why? Well, doing this would definitely insulate the credit from GOP repeal by tying it not to rapid decarbonization but instead American blue collar jobs.
  • Patrick Donnelly, chief commercial officer for Anovion, told attendees of a Hill briefing I moderated earlier this week that he wants to see this happen because it would be a “game changer” for domestic manufacturing. “I’ve heard some Republicans talking about it already.”
  • But it could also undermine the effectiveness of the credit for climate purposes. Similar requirements were tacked onto the IRA’s EV consumer credit that curtailed its reach and meant many cars couldn’t access the benefit.

Virginia’s planning – The state of Virginia is looking at its own plans to override local objections, which would make it one of the few GOP-led states to do so.

  • The state’s commission on electricity regulation proposed a draft plan late last month that would enable companies to appeal local rejections. Under that plan, the state would create a siting advisory board that would give insights as to whether a rejection was contrary to the overall state’s power needs.
  • It’s not a sure shot. The commission acknowledged legislation will be necessary to make this plan a reality, and the state’s divided government has rarely found agreement with energy policies. But all those Virginia data centers are going to need power from somewhere.

Here’s what else we’re watching…

  • So much money is going out the door right now: In the last week, the Energy Department has announced billions in new conditional loan commitments. Good news for the Grain Belt Express transmission line!
  • Included in those funds – a gusher of offshore wind research money.
  • Environmental justice advocates worry there’ll be less of a rush to award money they won in the Inflation Reduction Act before Trump takes office.

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Hotspots

Fox News Goes After a Solar Farm

And more of this week’s top renewable energy fights across the country.

Map of U.S. renewable energy.
Heatmap Illustration

1. Otsego County, Michigan – The Mitten State is proving just how hard it can be to build a solar project in wooded areas. Especially once Fox News gets involved.

  • Last week, the Michigan Department of Natural Resources said it wanted to lease more than 400 acres of undeveloped state-owned forestland for part of a much larger RWE Clean Energy solar project near the northern Michigan town of Gaylord.
  • Officials said they were approached by the company about the land. But the news sparked an immediate outcry, as state elected Republicans – and some Democrats – demanded to know why a forest would be cleared for ‘green’ energy. Some called for government firings.
  • Then came the national news coverage. On Friday, Fox News hosted a full four-minute segment focused on this one solar farm featuring iconoclastic activist Michael Shellenberger.
  • A few days later, RWE told the media it would not develop the project on state lands.
  • “[D]uring the development process, we conducted outreach to all landowners adjacent to the project location, including the Michigan Department of Natural Resources,” the company said in a statement to the Petoskey News-Review, adding it instead decided to move forward with leasing property from two private landowners.

2. Atlantic County, New Jersey – Opponents of offshore wind in Atlantic City are trying to undo an ordinance allowing construction of transmission cables that would connect the Atlantic Shores offshore wind project to the grid.

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Policy Watch

How to Solve a Problem Like a Wind Ban

And more of this week’s top policy news around renewables.

Trump.
Heatmap Illustration/Getty Images

1. Trump’s Big Promise – Our nation’s incoming president is now saying he’ll ban all wind projects on Day 1, an expansion of his previous promise to stop only offshore wind.

  • “They litter our country like paper, like dropping garbage in a field,” Trump said at a press conference Tuesday. “We’re going to try and have a policy where no windmills are built.”
  • Is this possible? It would be quite tricky, as the president only has control over the usage of federal lands and waters. While offshore wind falls entirely under the president’s purview, many onshore wind projects themselves fall entirely on state lands.
  • This is where the whole “wind kills birds” argument becomes important. Nearly all wind projects have at least some federal nexus because of wildlife protection laws, such as the Endangered Species Act and Migratory Bird Treaty Act.
  • Then there are the cables connecting these projects to the grid and interstate transmission projects that may require approval from the Federal Energy Regulatory Commission.
  • I’m personally doubtful he will actually stop all wind in the U.S., though I do think offshore wind in its entirety is at risk (which I’ve written about). Trump has a habit of conflating things, and in classic fashion, he only spoke at the press conference about offshore wind projects. I think he was only referring to offshore wind, though I’m willing to eat my words.

2. The Big Nuclear Lawsuit – Texas and Utah are suing to kill the Nuclear Regulatory Commission’s authority to license small modular reactors.

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Q&A

Are Anti-Renewables Activists Going Unchallenged?

A conversation with J. Timmons Roberts, executive director of Brown University’s Climate Social Science Network


J. Timmons Roberts
Heatmap Illustration

This week’s interview is with Brown University professor J. Timmons Roberts. Those of you familiar with the fight over offshore wind may not know Roberts by name, but you’re definitely familiar with his work: He and his students have spearheaded some of the most impactful research conducted on anti-offshore wind opposition networks. This work is a must-read for anyone who wants to best understand how the anti-renewables movement functions and why it may be difficult to stop it from winning out.

So with Trump 2.0 on the verge of banning offshore wind outright, I decided to ask Roberts what he thinks developers should be paying attention to at this moment. The following interview has been lightly edited for clarity.

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