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Policy Watch

Renewable Energy’s Gloomy Election

Why alarm bells are ringing in the renewable energy ecosystem, plus more policy news

Bill text.
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IRA on the mind – The renewable energy ecosystem is starting to really sound alarm bells about the November election and the risks of what they’re calling a “clean energy plan repeal” – e.g. scrapping IRA credits and carbon pollution rules.

  • Yesterday, the nonprofit E2 released a survey of industry leaders that found more than half would “lose business or revenue” from such a repeal and more than 20% would have to lay off employees.
  • Climate Power then sent out the survey in an email blast that read in big bold letters: “ICYMI: Business Leaders Say Repealing the Clean Energy Plan Would Lead to Mass Layoffs, Major Blow to Business.”
  • This is some classic Washington messaging prep clearly in the event of a less-than-favorable outcome in the election.

No Golden climate bill – However, if Kamala Harris and the Democrats do win in November, I’m bearish on the odds of another big piece of renewables stimulus passing through Congress next term.

  • That’s because of moderate Democrat Jared Golden of Maine, who said in a Politico profile yesterday that he would oppose his party moving to another piece of major climate legislation if they held power.
  • “I don’t want to talk about a climate bill,” Golden told the Beltway media outlet.
  • Given the odds of a major blue wave are exceedingly low, a Democratic majority would probably be thin – so thin that Golden would easily get his way.

Data center moratoriums – Energy demand for tech may be a driver of renewables development across the country, but data centers are starting to face moratoria fights of their own.

  • In Indiana, the activist group Citizens Action Coalition called for a state-wide ban on new data centers for artificial intelligence, arguing they waste electricity and no longer fit the budgetary boundaries of an existing state tax exemption on data centers.
  • The Coalition’s organizers include Ben Inskeep, who is also an analyst for energy consulting firm EQ Research.
  • It’s unclear whether this will fly with state policymakers as data center moratoriums so far have failed to get off the ground in the U.S.. Earlier this year a grassroots effort to restrict development in Loudon County, Virginia, flatlined.

Here’s what else we’re watching…

In Illinois, the Solar Energy Industries Association and American Clean Power are rallying behind comprehensive decarb stimulus legislation.

In Louisiana, voters going to the polls will decide whether to increase revenues from offshore energy – including wind – that go to coastal restoration.

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Spotlight

The Real vs. Imagined Problems with Data Centers’ Water Use

How much water is too much?

Water, a data center, and a protester.
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The data center water issues are real – but they aren’t what you think.

Too often, I hear people say the number one reason they’re against data center development is water use. Heatmap’s data shows water consumption is historically the reason cited most often by activists when opposing projects. This complaint, they often say, is rooted in the fear that this nascent buildout of AI infrastructure will simply draw so much H2O it will leave little liquid left for the rest of us.

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Hotspots

Texas Is the Eye of the Bipartisan Data Center Hurricane

And more of this week’s biggest news around project fights.

The United States.
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1. Matagorda County, Texas – The bipartisan data center backlash is now so powerful that a top Republican Texas state official is doing an event with the Democrat vying to replace him.

  • On Thursday afternoon, outgoing Republican agriculture commissioner Sid Miller and Democratic candidate Clayton Tucker are marqueeing a forum hosted by Matagorda County Against Data Centers, an opposition group that appears to also monitor solar and battery storage for potential opposition, too. Miller is leaving his post at the end of the year after being defeated in a GOP primary by Nate Sheets, who was supported by Gov. Greg Abbott.
  • This bipartisan forum will take place after Abbott himself called for new laws and regulations on data centers in a letter to Texas Public Utility Commission Chair Thomas Gleeson and ERCOT CEO Pablo Vegas. Abbott said he’d push to require data centers to pay costs for electric infrastructure and use “water-efficient technologies such as closed-loop cooling systems.” Also on the to-do list? Mandatory property setbacks and noise reduction.
  • It’s becoming clear the frustrations against AI infrastructure and associated energy projects are starting to boil without a vent. The first county to issue a data center moratorium in Texas has withdrawn the effort after facing a $100 million lawsuit from a developer, and other counties are delaying future moratoria on fears of legal risks. Where will all of this frustration go without the option to pause development locally?
  • We’re starting to see Texas legislators seek to channel this anger. Last week, Rep. Veronica Escobar – a Democrat who represents the dry, data center-anxious city of El Paso – offered an amendment in a House committee to block funding for the EPA’s new data center construction rules. The amendment failed but I’d hardly be surprised to see this sort of rider gain traction if Democrats retake the lower chamber, especially if data centers are a major election issue.

2. Albany County, New York – As we await Gov. Kathy Hochul’s decision on whether to enact the nation’s first statewide moratorium on data centers, I wanted to bring up some pretty crucial facts about the situation in the Empire State.

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Q&A

One Investor’s Climate ‘Realism’ In the Data Center Era

A conversation with Craig Lawrence of Energy Transition Ventures

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This week’s conversation is one of my favorites so far – Craig Lawrence of Energy Transition Ventures. Lawrence has been around the block and back again when it comes to the cleantech investment landscape. So I took note when he got into a brief back-and-forth with an activist fighting data centers in Indiana who claimed there were “so many clean energy people who no longer care about climate change” because they “now support fossil fuel data centers if some nominal amount is met with clean energy.”

Lawrence replied, “Some of us are simply realists.”

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