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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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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

Trump Keeps Wind Farms Waiting Despite Court Ruling

The administration told a federal court that it has a “new analytical methodology,” hence the continued delays.

Trump measuring wind turbines.
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A federal judge ruled in early August that the Trump administration’s freeze on vertical height clearances for wind turbines was likely illegal. More than a month later nearly all of the wind energy projects remain on pause, as federal officials add new red tape that industry representatives say runs afoul of the court’s edict.

Let’s catch-up quickly on the American wind sector’s existential dilemma: the federal government has control over airspace higher than 200 feet from the ground and wind farm turbines essentially always enter that sphere of control. For at least a year and a half, the Trump administration through the Department of Defense and the Federal Aviation Administration has slowly gummed up what industry and former government officials have said was once a rote, benign bureaucratic process for ensuring turbine rotation didn’t interfere with flight patterns or radar at nearby airports.

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Q&A

Why a Climate Law Expert Sees ‘Small Glimmers of Hope’

Talking about the data center backlash, the midterm elections, and the future of renewables with Columbia Law School’s Romany Webb.

Romany Webb.
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This week’s conversation is a quick catch-up with our friends at Columbia Law School’s Sabin Center for Climate Change Law. I hopped on the phone with the center’s deputy director Romany Webb to chat about recent updates they published to anti-renewables opposition analysis. I wanted to dig into their research beyond the toplines — what should people care about in the coming election? How have data centers come up in their research? Or the repeal of the Inflation Reduction Act?

The following conversation was lightly edited for clarity.

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Hotspots

All the Data Center News That’s Fit to Print

A developer sues an Arkansas paper, plus more of the week’s biggest development fights.

The United States.
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1. Pulaski County, Arkansas – A major utility sued the biggest newspaper in Arkansas over reporting on a data center energy deal. It’s a crucial case to follow.

  • The lawsuit Entergy filed last week against the Arkansas Democrat-Gazette centers on whether the newspaper was legally able to publish about an Entergy deal with Google around payments for a large solar farm to power a data center. It claims the information reported was a trade secret accidentally released by the state public services commission.
  • In a statement to a local ABC station, the utility claimed Google’s “electricity contract may be confidential to newspapers,” and that the publication also erroneously reported on the solar farm financing. Entergy is seeking a temporary restraining order blocking the publication from reporting any more information in its possession that would qualify as theirs or Google’s trade secrets, and claims they believe more information is in the publication’s possession that may be reported in the future, according to federal court filings.
  • So far, the utility has been unable to win the stoppage and U.S. District Judge Lee Rudofsky rejected their request on Wednesday. The case is proceeding and I will be checking in regularly for you on this one.
  • Why is this case so important? This is easily the most aggressive communications response to public reporting on a previously-unknown deal related to a data center. At a time when non-disclosure agreements are a profound liability for the sector, I am surprised to see a utility go as far as a federal court challenge.

2. Lackawanna County, Pennsylvania – Speaking of hardcore legal strategies, have you ever heard of a data center developer asking every local official to recuse themselves?

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