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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

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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 New Push for Underwater Data Centers

Exploratory projects are making a splash in Maine and Alaska.

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Wires and water.
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A legal brawl is brewing over what could be the nation’s first underwater data centers.

Two subsidiaries of a new LLC named DeepGreen have applied for “preliminary” permits from the Federal Energy Regulatory Commission that would give four years of permission for studies and analysis towards constructing underwater data centers off remote coastlines in Maine and Alaska. The data centers as proposed would be powered entirely by tidal energy, as in, the power of waves themselves – a technological innovation from hydropower still being piloted around the world. Project descriptions submitted to FERC lay out what these data centers would look like in broad strokes: hundreds of hydrokinetic turbines, dozens of underwater “data center pods,” and miles of subsea cable. The permits would not authorize construction, which would need its own lengthy review process. But these early green lights would tee both areas up for years of potential conflict over hypotheticals that feel real to those on the ground.

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Hotspots

The Solar Opponents Begging Trump to Intervene in Michigan

And more of the week’s biggest fights around project development

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1. Ottawa County, Michigan – A congressional district House Democrats are targeting for control of the Lower Chamber is now a battleground over solar development on farmland, and I’m waiting to see if President Trump gets involved.

  • On Sept. 24, the Michigan township of Zeeland wrote a letter to the president – and reportedly Agriculture Secretary Brooke Rollins – requesting the federal government intervene in the development of RWE’s utility-scale Silver Maple Solar project. The letter to Trump which is public requests the president visit Zeeland and the project site to “provide an opportunity to meet directly with local farmers, business owners, elected officials, and residents who are living with the consequences of the poor policies you are fighting against.”
  • Shortly thereafter, Zeeland Township supervisor Kerri Bosma, who authored the letter, met with Rep. Bill Huizenga and presented him with a copy of the letter. “Thank you for reaching out Kerri and keep up the fight against this Lansing big government takeover!” Huizenga said on Facebook. Huizenga’s office did not respond to a request for comment on how they would support this request further.
  • This is remarkable because local officials are beckoning for Trump to arrive at a time when he’s historically unpopular and Huizenga’s congressional district is one being targeted by the Democratic Congressional Campaign Committee in this year’s midterm elections as a priority. Maybe this is about ginning up partisan red meat, as Huizenga’s opponent, State Sen. Sean McCann, has been publicly supportive of more solar development in agricultural communities.
  • Locals appear most irate with the state permitting primacy law which allows the state regulator, Michigan Public Service Commission, to supersede local opposition toward renewable energy projects. So far, the legality of that power is withstanding court challenges, and it’s unclear to me how the federal government could in any way stall this large solar farm aside from helping out in that legal effort on behalf of localities.
  • Clearly, RWE is confident they can go ahead – they just resubmitted their application to build the project with the MPSC, citing the primacy law’s survival in the courts.

2. Texas – The Lone Star State sure is action-packed right now, huh? Let’s break down a few of the most important fights.

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Q&A

Why the Senate Permitting Bill Isn’t a ‘Grand Bargain’

A conversation with Josh Freed of Third Way

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Josh Freed.
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This week’s conversation is about the big energy policy story of the week – month? year? – which is the new bipartisan permitting deal in the U.S. Senate. As my colleagues and I were feverishly working on our mega-explainer about the bill, I rang up Josh Freed, founder of Third Way’s energy and climate program, who graciously picked up the phone despite traveling in London. Freed, a fellow energy wonk-slash-musician, was gracious to jam out with me on all the things I felt you needed to know about this bill – including whether there really is only one shot to get what he believes would be landmark legislation into law.

The following chat was lightly abridged for clarity. Let’s dive in.

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