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Policy Watch

Offshore Wind’s Sign of Resilience

And more of the week’s top policy news around renewable energy.

Wind turbines.
Heatmap Illustration/Getty Images

1. Offshore wind lease win – Two companies, Avangrid and Invenergy, purchased four of the eight leases up for grabs yesterday at the first floating offshore wind sale in the Gulf of Maine, according to the Bureau of Ocean Energy Management.

  • I’ve previously chronicled how offshore wind is particularly vulnerable to the whims of the federal government and how if Donald Trump wins the presidency again, the entire U.S. sector could grind to a shrieking halt.
  • That’s why, as my colleague Emily Pontecorvo noted, the fact any leases were purchased at all is a surprise sign that not all momentum has stalled ahead of this consequential election.
  • “The fact that two developers took the leap now rather than waiting for 2028 – which is when the next lease sale in the Gulf of Maine is scheduled – shows some level of confidence in the long-term prospects for the industry,” she writes.

2. Community benefit plans – The Energy Department’s Loan Programs Office is letting the public in on its community benefit agreements, publishing three plans for a wire harness plant in Texas, a solar-plus-storage project on tribal lands in California, and the revived Holtec Palisades nuclear plant in Michigan.

  • The LPO emphasized labor and trade benefits involved in each project. We’ve previously explored how community benefit agreements can really help with getting local consent on a project, depending on how they’re structured.

3. Big ports money pour – The EPA yesterday debuted nearly $3 billion in IRA funding to port decarbonization projects ranging from direct acquisitions of zero-emission tech to internal emissions planning.

  • EPA stated projects will not receive all funding until remaining legal requirements have been met. I’d note environmental analysis of these funding decisions has been a factor in “permitting reform” talks in Washington.

Here’s what else I’m watching right now…

  • In Massachusetts, a compromise climate bill is temporarily taking a back seat to an economic development package.
  • In Rhode Island, a mayoral re-election bid is now infused with allegations of conflict-of-interest surrounding a solar farm, close friends, and Revity Energy.
  • In Wyoming, legislators rejected bills that would’ve curbed state eminent domain powers for carbon capture and renewables.

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Spotlight

An Energy Developer Is Fighting a Data Center in Texas

Things in Sulphur Springs are getting weird.

Energy production and a data center.
Heatmap Illustration/Library of Congress, MSB Global, Luminant

Texas Attorney General Ken Paxton is trying to pressure a company into breaking a legal agreement for land conservation so a giant data center can be built on the property.

The Lone Star town of Sulphur Springs really wants to welcome data center developer MSB Global, striking a deal this year to bring several data centers with on-site power to the community. The influx of money to the community would be massive: the town would get at least $100 million in annual tax revenue, nearly three times its annual budget. Except there’s a big problem: The project site is on land gifted by a former coal mining company to Sulphur Springs expressly on the condition that it not be used for future energy generation. Part of the reason for this was that the lands were contaminated as a former mine site, and it was expected this property would turn into something like a housing development or public works project.

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Hotspots

Who Really Speaks for the Trees in Sacramento?

A solar developer gets into a forest fight in California, and more of the week’s top conflicts around renewables.

The United States.
Heatmap Illustration/Getty Images

1. Sacramento County, California – A solar project has become a national symbol of the conflicts over large-scale renewables development in forested areas.

  • This week the Sacramento County Board of Supervisors unanimously voted to advance the environmental review for D.E. Shaw Renewables’ Coyote Creek agrivoltaics solar and battery project, which would provide 200 megawatts to the regional energy grid in Sacramento County. As we’ve previously explained, this is a part of central California in needs of a significant renewables build-out to meet its decarbonization goals and wean off a reliance on fossil energy.
  • But a lot of people seem upset over Coyote Creek. The plan for the project currently includes removing thousands of old growth trees, which environmental groups, members of Native tribes, local activists and even The Sacramento Bee have joined hands to oppose. One illustrious person wore a Lorax costume to a hearing on the project in protest.
  • Coyote Creek does represent the quintessential decarb vs. conservation trade-off. D.E. Shaw took at least 1,000 trees off the chopping block in response to the pressure and plans to plant fresh saplings to replace them, but critics have correctly noted that those will potentially take centuries to have the same natural carbon removal capabilities as old growth trees. We’ve seen this kind of story blow up in the solar industry’s face before – do you remember the Fox News scare cycle over Michigan solar and deforestation?
  • But there would be a significant cost to any return to the drawing board: Republicans in Congress have, of course, succeeded in accelerating the phase-out of tax credits under the Inflation Reduction Act. Work on Coyote Creek is expected to start next year, in time to potentially still qualify for the IRA clean electricity credit. I suspect this may have contributed to the county’s decision to advance Coyote Creek without a second look.
  • I believe Coyote Creek represents a new kind of battlefield for conservation groups seeking to compel renewable energy developers into greater accountability for environmental impacts. Is it a good thing that ancient trees might get cut down to build a clean energy project? Absolutely not. But faced with a belligerent federal government and a shrinking window to qualify for tax credits, companies can’t just restart a project at a new site. Meanwhile, the clock is ticking on decarbonizing the electricity grid. .

2. Sedgwick County, Kansas – I am eyeing this county to see whether a fight over a solar farm turns into a full-blown ban on future projects.

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Q&A

How to Build a Data Center, According to an AI-Curious Conservationist

A conversation with Renee Grabe of Nature Forward

Renee Grebe.
Heatmap Illustration

This week’s conversation is with Renee Grabe, a conservation advocate for the environmental group Nature Forward who is focused intently on data center development in Northern Virginia. I reached out to her for a fresh perspective on where data centers and renewable energy development fits in the Commonwealth amidst heightened frustration over land use and agricultural impacts, especially after this past election cycle. I thought her views on policy-making here were refreshingly nuanced.

This transcript was lightly edited for clarity.

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