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Policy Watch

Mineral Mania

The week’s biggest news in renewable energy policy.

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Mineral mining.
Getty Images / Chris Briggs / Heatmap

1. Global minerals mania – The U.S. government and allies this week announced the Minerals Security Partnership Finance Network, a global minerals investment operation focused on battery metals and other resources key to the energy transition.

  • Along with the announcement came the disclosure of specific U.S. financing decisions – $600 million to Australian Strategic Materials for a rare earths project in New South Wales; $20 million to Electra Ontario Cobalt, a Canadian company, for a cobalt refinery; $50 million to ESS Inc. for iron flow battery assembly lines at its Oregon plant; and $3.6 million to Pensana Rare Earths for researching the expansion of a rare earths mine in Angola.
  • This represents a new norm where U.S. dollars can go to mining overseas. I’ve covered mining my whole career and can safely say the U.S. has never organized this hard to counter China’s outsized influence in global minerals markets through direct investments.
  • What else does this mean? Companies that rely on raw materials abroad are probably thinking internally about whether their resources could qualify for federal money one day, too.

2. Mining at home – Meanwhile, the Energy Department on Friday announced $3 billion (!) for 25 battery minerals and manufacturing projects in the United States.

  • A noteworthy name on the recipient list: SWA Lithium, a joint venture between Norwegian state-owned oil major Equinor and the Koch-backed mining company Standard Lithium. The money will go towards extracting lithium chemicals from the Smackover formation in Arkansas.

3. Buckwheat bucked – Domestic lithium extraction got another major boost from the government late last week when the Bureau of Land Management published the final environmental review for the Rhyolite Ridge mine in Nevada, one of the few U.S. lithium mining projects close to completing its permitting.

  • Publication of the review without adverse recommendations means the project is all but assured to be approved.
  • It’s another blow to the Center for Biological Diversity, which has fought to block the mine because studies, including research funded by the mining company, show a clear danger to an endangered flower present at dig sites called Tiehm’s buckwheat.
  • I’d expect litigation here from CBD. I’d also treat this as a bellwether for how the Biden administration looks generally at mining vs. species protection.

4. Semiconductors souped – Congress passed legislation on Monday to provide for federal regulators to fund semiconductor projects under the CHIPS Act without environmental reviews, sending it to the president’s desk where it’ll likely be enacted into law.

  • Semiconductor industry representatives had bemoaned the risk of NEPA reviews impacting CHIPS money going out. Now they won’t have to worry.

5. Content standards – The Solar Energy Industries Association published a new draft standard for compliance with U.S. customs requirements against the use of inputs from the Xinjiang region of China, where the U.S. government suspects forced labor is involved with solar materials manufacturing.

  • The draft standard is intended as a series of recommendations for companies to most easily meet the existing customs requirements.
  • They’re open for comment through Nov. 4. You can comment here.

Here’s what else I’m watching…

  • Anti-offshore activists in Nantucket petitioned the Supreme Court to take up their failed appeal of a lawsuit claiming the Vineyard Wind project violated the Endangered Species Act, citing the court’s recent decision to undo the so-called “Chevron Doctrine.”
  • A Senate committee is poised to vote on bipartisan legislation this week that would create revenue sharing for states with offshore wind – which may not easily become law in an election year but could be on the horizon soon after.
  • Nearly half of all IRA funding has gone to seven swing states for the U.S. presidential election, according to analysis conducted by a public policy firm at the request of The Guardian.
  • Colorado is offering a fresh round of grant money to localities in the state that want to use automated rooftop solar permitting software.

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Q&A

Why the Wilderness Society Backs a Data Center Moratorium

Talking with Dan Hartinger, the land conservation group’s senior policy director.

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Dan Hartinger, senior policy director for The Wilderness Society, a prominent land conservation organization in D.C. that this week called for a moratorium on data center development on public land. The public statement was relatively scant on details about the group’s stance, and a decade of reporting on policy in Washington has taught me that its positions are quite influential, especially in more traditional outdoor recreation and conservationist circles that are also often bipartisan. So I reached out and asked if someone could further explain the society’s position, and Dan obliged.

The following chat was lightly edited for clarity.

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Hotspots

Data Center Outrage Catches Up to Renewables Outrage in Michigan

Plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. Central Michigan – I regret to inform you of this back-and-forth between candidates running for Congress and a would-be constituent because it’s a warning sign for the renewable energy sector (and sort of broke my brain).

  • This week brought the first and likely only debate between Rep. Tom Barrett and Sunrise Movement cofounder Will Lawrence, who are locked in a tight contest over the Michigan 7th congressional district. As I’ve written, their race is a must-watch not only for control of the U.S. House but also the political fortunes of the data center sector.
  • The debate contained a remarkable exchange: Moderators played taped remarks from Paula Caltrider, identified as “a local resident” in the city of Mason to ask the candidates a question about data centers. Instead, she offered a comment. “You know, you can’t be a part of this no data center movement without renouncing the large solar farms and dangerous battery storage facilities that power these data centers.” (Quick TL;DR on Caltrider: She’s been quoted in national media coverage of the data center backlash and last year won a legal settlement after allegedly being fired for refusing a vaccine mandate.)
  • Barrett then ran with Caltrider’s baton. “I appreciate Paula linking these together, the stripping away of local control that took place in pursuit of this Green New Deal agenda in Lansing that took away control from communities” – a reference to the state’s primacy law that other Michigan Republican candidates have opposed.
  • Lawrence, whose support for a federal data center moratorium made him a national political test case, did not take the bait, nor did he criticize renewable energy. Instead, this part of the debate became a tit-for-tat about whether the sitting congressman once backed tax breaks for data centers. “He stuck his finger up into the wind, saw which way it was blowing, did a complete 180 on this issue,” Lawrence said. Then Barrett and Lawrence got into a confusing back-and-forth about whether the Inflation Reduction Act was a giveaway to data centers.
  • To the best of my knowledge, this is the first time the Data Center Trojan Horse has reared its ugly head on any kind of prominent debate stage, but it won’t be the last. For example: The Wisconsin gubernatorial debate is Oct. 21, and we’ve warned you about that one.

2. Doña Ana County, New Mexico – I suggest you pay closer attention to the federal permitting fight playing out over Oracle’s Project Jupiter.

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Spotlight

The Data Center Backlash Is Coming for Permitting Reform

The Senate’s compromise bill enters the chat at a moment when federal land and anti-pipeline advocates are already quite activated.

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The Capitol and a data center.
Heatmap Illustration/Getty Images

The AI data center backlash is getting louder in D.C. ahead of the midterms – and it’s poised to collide head-on with the new permitting reform deal being negotiated in Congress.

This week, major environmental advocacy organizations are taking large public steps to lean in on the data center fight. The League of Conservation Voters and Natural Resources Defense Council, I’ve been told, are imminently announcing a $250,000 ad buy in the Washington, D.C. market focused entirely on decrying fossil fuel-powered data centers and Trump administration policies to speed up their construction. The Wilderness Society, a prominent land conservation organization, announced it now supports a moratorium against data centers on “public lands” focused on the roughly half billion acres under the Interior Department’s stewardship. And Earthjustice on Thursday did a detailed report claiming that 80% of the data centers under development “bringing their own power” are going to rely on gas generation.

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