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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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Spotlight

Offshore Wind’s Existential Crisis at Climate Week

Can the industry ever recover?

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A wind turbine and Chris Wright.
Heatmap Illustration/Getty Images, Luke Liu

American offshore wind’s existential crisis was laid bare at this year’s Climate Week.

California and New York officials gathered on Tuesday at the New York Bar Association in Manhattan to tell attendees of the annual climate action mega-event about their efforts to hold the Trump administration to account. After Trump regulators upended wind projects off the East Coast and struck buyout trades with energy developers to ditch ocean wind leases, both states filed fresh legal action against the administration, targeting what they said were egregious abuses of taxpayer dollars that canceled once-promising projects that would’ve given gigawatts of power to grids expecting energy demand to spike.

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Hotspots

Another Solar Company Trying Gas-Powered Data Center on Federal Lands

And more of the week’s top news around project development.

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The United States.
Heatmap Illustration/Getty Images

1. Ada County, Idaho – Trump’s push for more data centers on federal lands is causing a lot more ruckus and catching another solar company in the cross-fire.

  • Last week, D.C. news outlet The Washington Sun first reported that a subsidiary of solar developer Arevia Power submitted a right-of-way application for a data center project on federal lands in Idaho, a fact the Bureau of Land Management confirmed in a statement to me Thursday. The project is currently in a preliminary phase of permitting and a public notice can be expected this year, a Bureau of Land Management representative told me.
  • Until the initiation of any National Environmental Policy Act review, information on the data center is scarcely available on public websites. So here’s what BLM told me about it in a statement: the data center project will be 4 million square feet and include a 3,226-acre parcel of federal land. An additional 514 acres will be needed for a 10.6-mile “electrical load line corridor.” The data center complex will include a substation, stepdown electrical yards, a water connection, and a 450-megawatt on-site natural gas-fired power facility. The project is expected to use upwards of 600 megawatts though, which explains the potential load lines.
  • The Sun story also claimed the Arevia project will connect to a “sprawling utility-scale” solar project. BLM has previously said the data center is in some way “linked” to an Arevia solar farm proposed on federal lands north of Twin Falls, Idaho.
  • Arevia Power did not respond to a request for comment on the project nor the reported inclusion of gas generation along with solar, which I could not find discussed on their website. This is not the first time I’ve seen reports of this kind of activity from a solar developer. On August 3, I reported that solar developer Clearway canceled a proposal submitted to the Bureau of Land Management to transform a solar application into a data center and gas project – after we made the existence of the proposal public.
  • On Thursday I spoke with Heather Tied-Nelson, acting communications lead for the Bureau of Land Management Idaho field office, briefly over the phone about the project. “It’s all so very early in the process. We’re working with the company to try to finalize their plan of development and probably publish a notice of intent to begin the planning process later this fall or winter,” Tied-Nelson told me. Then I asked whether the data center was tied to Arevia’s solar efforts and if this was another solar farm-for-data center application swap kind of situation. She replied: “I can’t speak to that.”

2. Carbon County, Wyoming – Tell me if you’ve heard this one before: The Trump administration just delayed a large fossil-free power project after criticism from a powerful Republican senator. But this time, it’s hydropower.

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Q&A

Pro-Renewables Super PAC Paying ‘Close Attention’ to Tom Tiffany

A conversation with Tom Matzzie of the Invest in Tomorrow Coalition

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Tom Matzzie, chair of the Invest in Tomorrow Coalition – a pro-renewables Super PAC fighting lawmakers of both sides of the aisle who spurn the sector. The Super PAC won quite a few victories during the primary season, successfully boosting challengers to hardline conservatives in the U.S. that fought for cuts to the Inflation Reduction Act and are no longer going to serve in the Lower Chamber. Matzzie, also CEO of solar firm CleanChoice Energy, is intent the sector must go on offense to win more public bipartisan support and survive the Trump 2.0 era.

I chatted with Matzzie to hear how he’s looking at the general election season. The conversation revealed to me they want the renewables industry to be seen as politically lethal. And they’re paying close attention to the Wisconsin gubernatorial race.

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