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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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Spotlight

It’s Getting Harder to Build a Solar Farm In America’s Sunniest State

A renewables fight in Arizona turns ugly.

Arizona solar farm.
Heatmap Illustration/Getty Images

Autumn Johnson told me some days it feels like she’s shouting into a void.

Johnson is the executive director for the Arizona branch of the Solar Energy Industries Association, the nation’s pre-eminent solar power trade group. Lately, she told me, she’s seeing an increasing number of communities go after potential solar farms, many of them places with little or no previous solar development. There’s so many she’s had to start “tracking them on a spreadsheet,” she tells me, then proceeding to rattle off the names of counties and towns like battles in a war. Heatmap Pro data reveals how restricted Arizona is today, with six out of the state’s 15 counties showing a restrictive ordinance on solar and/or wind energy.

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Hotspots

Congressman Asks Trump to Shut Down the Empire Wind Project

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

Map of renewable energy fights.
Heatmap Illustration

1. Long Island, New York We begin today with a crucial stand-off for the future of energy off the coast of New York City: Rep. Chris Smith – one of the loudest anti-wind voices in Congress – is asking the Trump administration to shut down active work on the Empire Wind project.

  • Few in Congress have frustrated offshore wind developers more than Smith, a New Jersey Republican who used legislative maneuvers to get a Government Accountability Office study greenlit about the impacts of offshore wind on whale species.
  • In a letter Friday, which has not been previously reported, Smith requested the project be forcibly paused until the Trump administration can complete its purported government-wide review of the wind industry.
  • Smith also asked a host of additional mitigation requirements be placed on Empire Wind before it can proceed, including new specific requirements on impacts to air travel. The letter claims – without specifics – that the project could impact radar interference “in the shadow of three major airports.”
  • “Empire Wind cannot safely proceed until much needed further review [can] be done to protect the public and our eastern seaboard. I ask that you do everything in your power to halt Equinor’s underhanded rush to begin piledriving and block construction until the critical assessment can be completed,” Smith wrote.
  • I’ve asked Equinor to comment on this letter, as a stop-work order would be a massive escalation in the war on offshore wind. Alyse Sharpe, a public affairs specialist with the Interior Department, told me in an email the agency does "not comment on congressional correspondence" but said it "takes all correspondence from Congress seriously and reviews each matter" and should there be "any updates on this topic, we will provide further information at the appropriate time."

2. Gulf of Maine – American floating offshore wind is now taking one more step backwards, as Mitsubishi pulls out of the test arrays it was working on under Biden with researchers at the University of Maine.

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Q&A

How Should Regulators Grapple With Moss Landing?

A conversation with Dustin Mulvaney, professor of environmental studies at San Jose State University

Dustin Mulvaney
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Today’s conversation is with Dustin Mulvaney, an environmental studies professor at San Jose State University. Mulvaney is a social scientist who spent much of his time before January 2025 advocating for more considerate and humane renewable energy development. Then Moss Landing happened. Mulvaney – who was there at Moss Landing the first day – is now obsessed with the myriad safety concerns laden in large-scale utility battery storage and what plans were in place to deal with the fire. His reasoning? A failure to grapple with safety concerns could undermine public trust in battery storage and make a transition away from fossil fuels more difficult.

The following is an abridged version of our conversation, which was the interview that first prompted me to investigate the mystery of the health concerns surrounding the fire.

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