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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

A Permitting U-Turn in Indiana

map of renewable energy and data center conflicts
Heatmap Illustration

1. Marion County, Indiana — State legislators made a U-turn this week in Indiana.

  • The Indiana House passed a bill on Tuesday that would have allowed solar projects, data centers, and oil refineries on “poor soil.” Critics lambasted the bill for language they said was too vague and would wrest control from local governments, and on Thursday, local media reported that the legislation as written had effectively died.
  • Had it passed, the new rules would have brought Indiana’s solar permitting process closer to that of neighboring Illinois and Michigan, both of which limit the ability of counties and townships to restrict renewable energy projects. According to Heatmap Pro data, local governments in Indiana currently have more than 60 ordinances and moratoriums restricting renewable development on the books, making it one of the most difficult places to build renewable energy in the country.

2. Baldwin County, Alabama — Alabamians are fighting a solar project they say was dropped into their laps without adequate warning.

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Q&A

What Data Centers Mean for Local Jobs

A conversation with Emily Pritzkow of Wisconsin Building Trades

The Q&A subject.
Heatmap Illustration

This week’s conversation is with Emily Pritzkow, executive director for the Wisconsin Building Trades, which represents over 40,000 workers at 15 unions, including the International Brotherhood of Electrical Workers, the International Union of Operating Engineers, and the Wisconsin Pipe Trades Association. I wanted to speak with her about the kinds of jobs needed to build and maintain data centers and whether they have a big impact on how communities view a project. Our conversation was edited for length and clarity.

So first of all, how do data centers actually drive employment for your members?

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Spotlight

Are Republicans Turning on Data Centers?

The number of data centers opposed in Republican-voting areas has risen 330% over the past six months.

Trump signs and a data center.
Heatmap Illustration/Getty Images

It’s probably an exaggeration to say that there are more alligators than people in Colleton County, South Carolina, but it’s close. A rural swath of the Lowcountry that went for Trump by almost 20%, the “alligator alley” is nearly 10% coastal marshes and wetlands, and is home to one of the largest undeveloped watersheds in the nation. Only 38,600 people — about the population of New York’s Kew Gardens neighborhood — call the county home.

Colleton County could soon have a new landmark, though: South Carolina’s first gigawatt data center project, proposed by Eagle Rock Partners.

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