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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

Tough Times for Renewable Energy Projects

A look at the week’s biggest fights over wind and solar farms.

Map of renewable energy fights.
Heatmap Illustration

1. McIntosh County, Oklahoma – Say goodbye to the Canadian River wind project, we hardly knew thee.

  • The TransAlta utility-scale wind facility was canceled mere days after we were first to report on the uprising in favor of a ban on new renewables in the state.
  • Local residents had banded together against the project due to its close proximity to Lake Eufaula, a large reservoir. Opposition included representatives of the native Muscogee Tribe.
  • TransAlta confirmed the project was dead in a statement to me last week after state politicians were first to declare its demise. On Monday, the company provided a statement in lieu of making someone available to speak with me: “The unfortunate decision to terminate the project was due to two primary reasons – challenges with land acquisition as well as ongoing uncertainty regarding grid interconnection.”

2. Allen County, Ohio – A utility-scale project caught in the crossfires over solar on farmland and local-vs-state conflicts now appears deceased, too.

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Q&A

How to Find Consensus to Build More Transmission

A conversation with Cici Vu and Morgan Putnam of DNV Energy Systems

Cici Vu and Morgan Putnam
Heatmap Illustration

Today we’re speaking with Cici Vu and Morgan Putnam from DNV Energy Systems, who helped craft a must-read report out this week on community relations in transmission with Americans for Clean Energy Grid (ACEG). Their report compiles findings of a roundtable with environmentalists, Indigenous rights activists, developers, and individual land owners, and finds transmission can fare better than solar and wind in this current political climate – and that community benefit agreements can be helpful for getting projects across the finish line. But some issues divided the roundtable, including how to structure labor benefits to ensure lots of people get job opportunities from transmission.

The following is a lightly edited and abridged version of our conversation:

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Policy Watch

Hearings Galore, Youngkin’s Slow Bore

This week’s top news around renewable energy policy.

Glenn Youngkin and solar farms.
Heatmap Illustration / Getty Images

1. Youngkin sides with locals – Virginia Gov. Glenn Youngkin this week said at his State of the State address that he would oppose efforts to “end local control of solar project siting” – indicating he will fiercely challenge efforts by some state policymakers to resolve challenges posed by town and county restrictions on renewables by overriding them.

  • “Local communities must be able to exercise their rights with regards to land use,” Youngkin said, adding a comparison that tied solar’s growth to the data center boom in the state. “Different communities will make different decisions on data centers but these must be their decisions.”
  • As we previously explained, solar developers are seeking changes to state policy in order to overrule local restrictions and draft recommendations from a Virginia commission on electricity called for the creation of an independent body to adjudicate these objections.

2. More like Hearing Watch – We’re starting to learn how Trump’s most significant nominees may run federal energy and climate agencies. Thank you, senatorial advise and consent process!

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