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Policy Watch

Building Renewable Energy on Castles of Sand

A look at the biggest news around renewable energy policy this week.

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Wind turbines
Getty Images / Heatmap Illustration

1. The anti-renewable locavore – Republican lawmakers are aiming to empower localities to block renewables projects, a similar scene to what’s played out in Ohio, where state legislators gave towns the power to have a final word on development instead of state-led entities.

2. Sgamma thoughts – Trump selected Kathleen Sgamma, head of the pro-oil Western Energy Alliance, to head the Bureau of Land Management. What does this mean for renewables developers? It’s hard to tell because so much of her time was spent on a single mission: liberating as much oil from the ground as possible.

  • The best and most predictable guess is simply that renewables will not be a priority for her. Sgamma coauthored the Interior Department section of Project 2025, which made just one reference to solar, criticizing Joe Biden’s leadership at the agency for “dramatically increas[ing] production of solar and wind energy.” The document made scant nods to renewables.

3. Contract law challenge – The Trump administration’s funding freezes are challenging the foundations of the compact between private industry and contracted government services. If you haven’t read it yet, I implore you to scroll through my colleague Robinson Meyer’s new article on the issue.

Here’s what else I’m watching…

In California, Democratic legislators have introduced a bill that would ensure the state keeps studying offshore wind port infrastructure despite Trump’s permitting freeze.

In Maryland, lawmakers are trying to move permitting legislation under the banner of lowering utility bills.

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Q&A

How to Channel Voters’ Anxieties About Data Centers

A conversation with the Guardrails Alliance’s Shaunna Thomas.

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.

After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.

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Hotspots

Consider the Lobstermen Affected by New York’s Empire Wind

Plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.

  • In late October, a family of lobstermen sued Equinor in federal court claiming the company’s compensatory mitigation program is failing to adequately make up for alleged negative impacts to lobster fishing grounds in the New York Bight. According to the lawsuit, the wind project irreparably hurt fishing in previously trafficked waters. The suit also claims that Empire Wind construction destroyed lobster fishing pots and seeks at least $75,000 in damages as well as punitive damages and attorneys’ fees.
  • The lawsuit is the first I have seen involving someone in aquaculture suing for damages over negative impacts of an already-constructed wind project, and it carries outsized implications as the Trump administration remands without vacatur the construction and operations plans for other offshore wind farms. This case is far from being decided, but that doesn’t matter: It is precisely the kind of complaint that Trump officials are likely to consider as they mull revisions to operational plans.
  • An Equinor spokesman declined to comment on the case, telling me they don’t speak on pending litigation.

2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.

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Spotlight

Data Center Developers Can’t Pay People Enough to Accept Them

Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.

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Donald Trump and data center protesters.
Heatmap Illustration/Getty Images

This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.

Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.

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