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Policy Watch

What I’m Watching in Washington

A rundown of key policy moves from the past week.

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capitol hill.
Heatmap Illustration/Wiki Commons

China, China, China – Republicans in Congress are trying to pressure the U.S. into an even more hawkish stance against Chinese battery supply chains ahead of the November election.

  • The top Republican on the Senate Foreign Relations Committee, Senator Marco Rubio, wrote the Defense Department last week requesting the Defense Department blacklist the world’s largest battery manufacturer CATL, a Chinese company.
  • The House of Representatives is also scheduled to vote next week on a bill requiring the Homeland Security Department to blacklist CATL and other Chinese-owned battery manufacturers.
  • I’ve written a lot of stories about how many Republicans are trying to get the U.S. to entirely decouple its commercial enterprises from Chinese companies – a wholly different objective than building up U.S. industries so the nation can compete with and wean off China. (Like what the IRA did.)
  • No matter the national security justifications, forcibly decoupling from China would take essential supplies off the table for an energy transition.
  • What I’m watching for is if the Republican pressure influences how Kamala Harris approaches this topic, and whether she’ll differ from the Biden administration’s approach to China and batteries.

BLM’s solar plan – The Bureau of Land Management last week released its long-awaited programmatic environmental impact statement for solar development across the Southwest, opening 31 million acres to potential projects across almost a dozen states.

  • The Biden administration says its steering development away from “wildlife and land conflicts,” but it already faces pushback from conservation activists. One of the most likely plaintiffs against the plan – the Center for Biological Diversity – released a statement critical of the document that noted it would impact a sizable amount of desert tortoise habitat.

Trump’s energy whisperer – The Trump campaign told Reuters last week the former president would ax the EPA’s climate-minded power plant rules if elected… but that’s not what caught my eye.

  • No, what’s most notable is that the campaign official who made this news was former Trump administration Interior Secretary David Bernhardt, who is now a key figure at the MAGA-aligned America First Policy Institute.
  • I’ve covered Bernhardt for years and interviewed him last year upon the release of his book, “You Report to Me.” It’s my belief he is angling for an even more influential role in a future Trump administration that would leverage his expertise in the administrative state to make Trump far more successful at undoing energy and climate rules. (OMB?)

Other policy moves worth watching…

Nevada’s new plan — Joe Lombardo, the Republican governor of Nevada, released a new statewide climate plan after the one put forward by his Democratic predecessor vanished. It’s getting panned.

‘Greenwashing’ push — The Agriculture Department launched an initiative aimed at combating misleading climate claims in the meat and poultry industries.

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Q&A

How to Channel Voters’ Anxieties About Data Centers

A conversation with the Guardrails Alliance’s Shaunna Thomas.

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.

After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.

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Hotspots

Consider the Lobstermen Affected by New York’s Empire Wind

Plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.

  • In late October, a family of lobstermen sued Equinor in federal court claiming the company’s compensatory mitigation program is failing to adequately make up for alleged negative impacts to lobster fishing grounds in the New York Bight. According to the lawsuit, the wind project irreparably hurt fishing in previously trafficked waters. The suit also claims that Empire Wind construction destroyed lobster fishing pots and seeks at least $75,000 in damages as well as punitive damages and attorneys’ fees.
  • The lawsuit is the first I have seen involving someone in aquaculture suing for damages over negative impacts of an already-constructed wind project, and it carries outsized implications as the Trump administration remands without vacatur the construction and operations plans for other offshore wind farms. This case is far from being decided, but that doesn’t matter: It is precisely the kind of complaint that Trump officials are likely to consider as they mull revisions to operational plans.
  • An Equinor spokesman declined to comment on the case, telling me they don’t speak on pending litigation.

2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.

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Spotlight

Data Center Developers Can’t Pay People Enough to Accept Them

Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.

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Donald Trump and data center protesters.
Heatmap Illustration/Getty Images

This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.

Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.

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