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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

The New Transmission Line Pitting Trump’s Rural Fans Against His Big Tech Allies

Rural Marylanders have asked for the president’s help to oppose the data center-related development — but so far they haven’t gotten it.

Donald Trump, Maryland, and Virginia.
Heatmap Illustration/Getty Images

A transmission line in Maryland is pitting rural conservatives against Big Tech in a way that highlights the growing political sensitivities of the data center backlash. Opponents of the project want President Trump to intervene, but they’re worried he’ll ignore them — or even side with the data center developers.

The Piedmont Reliability Project would connect the Peach Bottom nuclear plant in southern Pennsylvania to electricity customers in northern Virginia, i.e.data centers, most likely. To get from A to B, the power line would have to criss-cross agricultural lands between Baltimore, Maryland and the Washington D.C. area.

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Hotspots

Trump Punished Wind Farms for Eagle Deaths During the Shutdown

Plus more of the week’s most important fights around renewable energy.

The United States.
Heatmap Illustration/Getty Images

1. Wayne County, Nebraska – The Trump administration fined Orsted during the government shutdown for allegedly killing bald eagles at two of its wind projects, the first indications of financial penalties for energy companies under Trump’s wind industry crackdown.

  • On November 3, Fox News published a story claiming it had “reviewed” a notice from the Fish and Wildlife Service showing that it had proposed fining Orsted more than $32,000 for dead bald eagles that were discovered last year at two of its wind projects – the Plum Creek wind farm in Wayne County and the Lincoln Land Wind facility in Morgan County, Illinois.
  • Per Fox News, the Service claims Orsted did not have incidental take permits for the two projects but came forward to the agency with the bird carcasses once it became aware of the deaths.
  • In an email to me, Orsted confirmed that it received the letter on October 29 – weeks into what became the longest government shutdown in American history.
  • This is the first action we’ve seen to date on bird impacts tied to Trump’s wind industry crackdown. If you remember, the administration sent wind developers across the country requests for records on eagle deaths from their turbines. If companies don’t have their “take” permits – i.e. permission to harm birds incidentally through their operations – they may be vulnerable to fines like these.

2. Ocean County, New Jersey – Speaking of wind, I broke news earlier this week that one of the nation’s largest renewable energy projects is now deceased: the Leading Light offshore wind project.

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Q&A

The Guy Debunking Myths About Wind Along the Jersey Shore

A conversation with Cape May County Commissioner candidate Eric Morey.

Eric Morey.
Heatmap Illustration

This week’s conversation is with Eric Morey, who just ran to be a commissioner for Cape May County, New Jersey – one of the Garden State coastal counties opposed to offshore wind. Morey is a Democrat and entered the race this year as a first-time politician, trying to help crack the county panel’s more-than-two-decade Republican control. Morey was unsuccessful, losing by thousands of votes, but his entry into politics was really interesting to me – we actually met going back and forth about energy policy on Bluesky, and he clearly had a passionate interest in debunking some of the myths around renewables. So I decided to call him up in the hopes he would answer a perhaps stupid question: Could his county ever support offshore wind?

The following conversation has been lightly edited for clarity.

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