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Policy Watch

Mineral Mania

The week’s biggest news in renewable energy policy.

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

Senator John Hickenlooper on Renewable Energy in a Trump 2.0 Era

A conversation with Colorado's junior senator on the 2024 election, permitting reform, and what might happen with the IRA.

Hickenlooper.
Heatmap Illustration

This week we’re talking to Senator John Hickenlooper of Colorado who joined me yesterday at Heatmap’s Election Post-Game event in Washington, D.C., for a spirited chat about the 2024 election, permitting, and support for renewable energy in a Trump 2.0 era. We also talked about beer and The Fray, but we’ll spare you those details. The following is an abridged version of our conversation.

So you’ve said in your time in the Senate there needs to be a “business plan” for climate change. What’s the business plan now that Trump is going to be president again?

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Policy Watch

Nothing Is Safe from Trump

The week’s top news around renewable energy policy.

Trump.
Heatmap Illustration/Getty Images

1. Forget about the IRA – As the dust has settled post-election, it’s becoming clearer far more than the IRA is at stake in the coming Trump 2.0 administration – namely, whether what people expect in the normal course of governing will resume at all.

  • Case in point: Massachusetts electeds just learned they will not be able to complete talks on new offshore wind procurement contracts until after Trump takes office. Will any of these projects even be able to pursue federal permits?
  • Or take statutes and agencies once considered sacrosanct. Overnight, The Washington Post reported Trump may seek to unilaterally cut programs with expired authorizations. That includes the Energy Policy Act of 2005 – and the statute creating NOAA.
  • I covered Trump from the day he was sworn in, with most of my time spent in Congress. And I’ve kept tabs with some in his braintrust over the years. So I can tell you confidently: expect the unexpected, and don’t count on your permits.

2. Money and time – Biden agencies are (predictably) starting to get rules out the door to wrap up whatever they can before Trump takes office.

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Hotspots

The Renewable Energy Project Trump Might Kill on Day 1

And more news on the biggest conflicts around renewable energy projects.

Map.
Heatmap Illustration

1. Magic Valley, Idaho – Sen. Jim Risch, one of the state’s loudest opponents of the Lava Ridge wind farm, said he believes Donald Trump will stop the project on Day 1.

  • In a newly-aired interview with TV outlet KTVB, Risch said the matter has been presented to the incoming president and that the proposal from LS Energy would be targeted by an order similar to Biden’s stopping the Keystone XL oil pipeline.
  • “When Biden took office, he walked in there [and] signed an executive order and that was the end of the Keystone pipeline. When Donald Trump walks into that president’s room, waiting for him is going to be a keystone pipeline-like executive order that says Lava Ridge ain’t no more.”
  • Lava Ridge has faced fierce backlash for a long time, for cultural and environmental reasons. That’s why we at Heatmap put it at the very top of our list of 10 at-risk projects to watch in the energy transition.
  • The Bureau of Land Management released a federal environmental review for Lava Ridge in June and it sliced the project’s scope in half, from 400 turbines to a little north of 200. The next and final step would be a record of decision formally approving it but it’s unclear when – or if – the record of decision for the wind project may be released before Trump leaves office.
  • Keep an eye out for more reporting on this potential move.

2. Hardin County, Kentucky – Lightsource, a subsidiary of bp, is going to the mat against a chapter of prominent anti-renewables network Citizens for Responsible Solar over a project in the small Kentucky city of Elizabethtown.

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