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Policy Watch

Good Week for Power Lines, Bad Week for Offshore Wind

The most important renewable energy policies and decisions from the last few days.

Transmission and wind.
Fré Sonneveld / NOAA / Heatmap

Greenlink’s good day – The Interior Department has approved NV Energy’s Greenlink West power line in Nevada, a massive step forward for the Biden administration’s pursuit of more transmission.

  • The project will be linked to Arevia Power’s Libra Solar Project, which the BLM finished reviewing last month.
  • Interior also released a draft environmental review for the Greenlink North transmission project, a companion to Greenlink West.
  • While these approvals might lift the weight off some YIMBY chests, I wouldn’t be too sure this fight is over, judging by recent Fight interviewee Patrick Donnelly’s claim to the press that this decision could lead to listing the sage grouse as an endangered species. Do I smell litigation?

States’ offshore muddle – We saw a lot of state-level offshore wind movement this past week… and it wasn’t entirely positive. All of this bodes poorly for odds of a kumbaya political moment to the industry’s benefit any time soon.

Chumash loophole – Offshore wind did notch one win in northern California by securing an industry exception in a large marine sanctuary, providing for farms to be built in a corridor of the coastline.

  • The final Chumash Heritage National Marine Sanctuary arrives with both an opening for offshore wind projects currently being planned and the blessing of the North Chumash Tribal Council – what appears to be a win-win.
  • Regulators say they’ll consider a potential expansion of the sanctuary in the “coming years” after transmission cables have been approved.

Here’s what else I’m watching …

  • The Supreme Court is apparently swamped with emergency requests from the energy industry and Republican states to intervene in anti-pollution regulation.
  • In Maine, activists are pushing the state to get more aggressive with its climate plans.
  • In Washington state, a ballot initiative threatens to repeal the state’s “cap and invest” climate law.

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Spotlight

The Real vs. Imagined Problems with Data Centers’ Water Use

How much water is too much?

Water, a data center, and a protester.
Heatmap Illustration/Getty Images

The data center water issues are real – but they aren’t what you think.

Too often, I hear people say the number one reason they’re against data center development is water use. Heatmap’s data shows water consumption is historically the reason cited most often by activists when opposing projects. This complaint, they often say, is rooted in the fear that this nascent buildout of AI infrastructure will simply draw so much H2O it will leave little liquid left for the rest of us.

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Hotspots

Texas Is the Eye of the Bipartisan Data Center Hurricane

And more of this week’s biggest news around project fights.

The United States.
Heatmap Illustration/Getty Images

1. Matagorda County, Texas – The bipartisan data center backlash is now so powerful that a top Republican Texas state official is doing an event with the Democrat vying to replace him.

  • On Thursday afternoon, outgoing Republican agriculture commissioner Sid Miller and Democratic candidate Clayton Tucker are marqueeing a forum hosted by Matagorda County Against Data Centers, an opposition group that appears to also monitor solar and battery storage for potential opposition, too. Miller is leaving his post at the end of the year after being defeated in a GOP primary by Nate Sheets, who was supported by Gov. Greg Abbott.
  • This bipartisan forum will take place after Abbott himself called for new laws and regulations on data centers in a letter to Texas Public Utility Commission Chair Thomas Gleeson and ERCOT CEO Pablo Vegas. Abbott said he’d push to require data centers to pay costs for electric infrastructure and use “water-efficient technologies such as closed-loop cooling systems.” Also on the to-do list? Mandatory property setbacks and noise reduction.
  • It’s becoming clear the frustrations against AI infrastructure and associated energy projects are starting to boil without a vent. The first county to issue a data center moratorium in Texas has withdrawn the effort after facing a $100 million lawsuit from a developer, and other counties are delaying future moratoria on fears of legal risks. Where will all of this frustration go without the option to pause development locally?
  • We’re starting to see Texas legislators seek to channel this anger. Last week, Rep. Veronica Escobar – a Democrat who represents the dry, data center-anxious city of El Paso – offered an amendment in a House committee to block funding for the EPA’s new data center construction rules. The amendment failed but I’d hardly be surprised to see this sort of rider gain traction if Democrats retake the lower chamber, especially if data centers are a major election issue.

2. Albany County, New York – As we await Gov. Kathy Hochul’s decision on whether to enact the nation’s first statewide moratorium on data centers, I wanted to bring up some pretty crucial facts about the situation in the Empire State.

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Q&A

One Investor’s Climate ‘Realism’ In the Data Center Era

A conversation with Craig Lawrence of Energy Transition Ventures

The Q&A subject.
Heatmap Illustration

This week’s conversation is one of my favorites so far – Craig Lawrence of Energy Transition Ventures. Lawrence has been around the block and back again when it comes to the cleantech investment landscape. So I took note when he got into a brief back-and-forth with an activist fighting data centers in Indiana who claimed there were “so many clean energy people who no longer care about climate change” because they “now support fossil fuel data centers if some nominal amount is met with clean energy.”

Lawrence replied, “Some of us are simply realists.”

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