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Policy Watch

The IRA’s Coming China Change

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

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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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Spotlight

Offshore Wind’s Existential Crisis at Climate Week

Can the industry ever recover?

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A wind turbine and Chris Wright.
Heatmap Illustration/Getty Images, Luke Liu

American offshore wind’s existential crisis was laid bare at this year’s Climate Week.

California and New York officials gathered on Tuesday at the New York Bar Association in Manhattan to tell attendees of the annual climate action mega-event about their efforts to hold the Trump administration to account. After Trump regulators upended wind projects off the East Coast and struck buyout trades with energy developers to ditch ocean wind leases, both states filed fresh legal action against the administration, targeting what they said were egregious abuses of taxpayer dollars that canceled once-promising projects that would’ve given gigawatts of power to grids expecting energy demand to spike.

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Hotspots

Another Solar Company Trying Gas-Powered Data Center on Federal Lands

And more of the week’s top news around project development.

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The United States.
Heatmap Illustration/Getty Images

1. Ada County, Idaho – Trump’s push for more data centers on federal lands is causing a lot more ruckus and catching another solar company in the cross-fire.

  • Last week, D.C. news outlet The Washington Sun first reported that a subsidiary of solar developer Arevia Power submitted a right-of-way application for a data center project on federal lands in Idaho, a fact the Bureau of Land Management confirmed in a statement to me Thursday. The project is currently in a preliminary phase of permitting and a public notice can be expected this year, a Bureau of Land Management representative told me.
  • Until the initiation of any National Environmental Policy Act review, information on the data center is scarcely available on public websites. So here’s what BLM told me about it in a statement: the data center project will be 4 million square feet and include a 3,226-acre parcel of federal land. An additional 514 acres will be needed for a 10.6-mile “electrical load line corridor.” The data center complex will include a substation, stepdown electrical yards, a water connection, and a 450-megawatt on-site natural gas-fired power facility. The project is expected to use upwards of 600 megawatts though, which explains the potential load lines.
  • The Sun story also claimed the Arevia project will connect to a “sprawling utility-scale” solar project. BLM has previously said the data center is in some way “linked” to an Arevia solar farm proposed on federal lands north of Twin Falls, Idaho.
  • Arevia Power did not respond to a request for comment on the project nor the reported inclusion of gas generation along with solar, which I could not find discussed on their website. This is not the first time I’ve seen reports of this kind of activity from a solar developer. On August 3, I reported that solar developer Clearway canceled a proposal submitted to the Bureau of Land Management to transform a solar application into a data center and gas project – after we made the existence of the proposal public.
  • On Thursday I spoke with Heather Tied-Nelson, acting communications lead for the Bureau of Land Management Idaho field office, briefly over the phone about the project. “It’s all so very early in the process. We’re working with the company to try to finalize their plan of development and probably publish a notice of intent to begin the planning process later this fall or winter,” Tied-Nelson told me. Then I asked whether the data center was tied to Arevia’s solar efforts and if this was another solar farm-for-data center application swap kind of situation. She replied: “I can’t speak to that.”

2. Carbon County, Wyoming – Tell me if you’ve heard this one before: The Trump administration just delayed a large fossil-free power project after criticism from a powerful Republican senator. But this time, it’s hydropower.

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Q&A

Pro-Renewables Super PAC Paying ‘Close Attention’ to Tom Tiffany

A conversation with Tom Matzzie of the Invest in Tomorrow Coalition

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Tom Matzzie, chair of the Invest in Tomorrow Coalition – a pro-renewables Super PAC fighting lawmakers of both sides of the aisle who spurn the sector. The Super PAC won quite a few victories during the primary season, successfully boosting challengers to hardline conservatives in the U.S. that fought for cuts to the Inflation Reduction Act and are no longer going to serve in the Lower Chamber. Matzzie, also CEO of solar firm CleanChoice Energy, is intent the sector must go on offense to win more public bipartisan support and survive the Trump 2.0 era.

I chatted with Matzzie to hear how he’s looking at the general election season. The conversation revealed to me they want the renewables industry to be seen as politically lethal. And they’re paying close attention to the Wisconsin gubernatorial race.

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