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Policy Watch

Time for Tariffs and Permitting Reform?

A look at federal and state policy battles over the past week

Factory illustration.
Getty Images / Heatmap illustration

Tariffs time, baby – All eyes are on the U.S. Trade Representative after the Biden administration locked in 100% tariffs on Chinese electric vehicle imports effective in a week and a half, and determined up next are a 50% tariff on solar cells and 25% tariff on steel, aluminum, EV batteries and transition metals.

  • Before the duty news came down, walking around RE+ last week, I was honestly surprised at the sheer number of Chinese manufacturers with convention showroom booths, from EV company BYD to companies like Gotion that have riled up lawmakers in D.C. It was a charm offensive.
  • If Ford executives are to be believed, China could still play a role in the future of the U.S. automotive industry. But that being said, I have my doubts U.S. trade policy will change on EV and solar supply chains given the big lobbying spend from domestic manufacturers and mining companies in Washington.

Permit time, time permitting – Lots of hay is being made of permitting reform back in D.C., where congressional Republicans have revived legislative efforts to overhaul the National Environmental Policy Act and Endangered Species Act.

  • Action lately has largely taken place in the House Natural Resources Committee, which oversees land use issues. The committee held a hearing on legislation to modify NEPA implementation last week. Its chair Bruce Westerman also introduced legislation that would change federal species preservation.
  • These bills go much further than the bipartisan permitting compromise reached in the Senate, which focuses on judicial review, fossil fuel leasing, and renewable energy timelines.
  • I’ll say this with all the painful confidence of someone who covered Congress for far too long: some centrists have applauded the bills but they’re DOA – especially if Kamala Harris wins the November presidential election. That’s simply because the math for radically changing NEPA just isn’t there, and doubly so for wildlife protection law.

Maine’s offshore wind – The Bureau of Ocean Energy Management announced it’ll officially hold the first offshore wind lease sale on Maine waters on Oct. 29.

  • It is widely expected that for offshore wind in the Gulf of Maine to succeed it must consist of floating turbines to accommodate concerns from the state’s politically powerful fishermen.
  • BOEM issued a research lease for a floating offshore wind pilot project last month to the University of Maine for studying the technology.

Transformers, too – A White House-led infrastructure policy committee recommended the federal government should create a “virtual reserve” of transformers for energy security.

  • The recommendations note a growing wait time for procuring transformers for the grid and note physical products wouldn’t be necessary. Instead, it says the government needs ample data on what’s in stock domestically and the capacity to offer pricing support to businesses for purchasing transformers and products in the supply chain.

Here’s what else I’m watching…

  • The Treasury Department this morning proposed wide eligibility parameters for the IRA electric vehicle charging station credit.
  • House Speaker Mike Johnson said congressional Republicans may preserve some IRA credits if the GOP maintains control of Congress next year. He didn’t say which credits, though I took a stab at predicting which would stay over the summer.
  • Fresh off his op-ed for Heatmap, former White House National Economic Council head Brian Deese authored a new report on building out advanced transmission.
Climate activists are urging the Federal Energy Regulatory Commission to reverse its approval of the Southeast Energy Exchange Market, a regional energy trading platform.

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Spotlight

Renewable Energy’s Farmland Free-for-All

Why farmers are becoming the new nemeses of the solar and wind industries

Farmland
Ahmet Kurt / Heatmap Illustration

Farms are fast becoming one of the most powerful opponents to renewable energy in the United States, second perhaps only to the fossil fuel industry. And it’s frighteningly unclear how developers will resolve this problem – or if they even can.

As solar and wind has grown rapidly across the country, so too have protests against solar and wind power on “prime farmland,” a loose term used by industry and government officials to describe property best suited for growing lots of crops. Towns and counties are banning the construction of solar and wind farms on prime farmland. State regulators – including those run by Democrats – are restricting renewable development on prime farmland, and members of Congress are looking at cutting off or restricting federal funds to projects on prime farmland.

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Yellow
Hotspots

Trouble for Renewables in Rhode Island, Oregon, Iowa, and More

A look at the conflicts around renewable energy projects over the past week

Map.
Heatmap Illustration.

1. Newport County, Rhode Island – I’ve learned that climate activists in Rhode Island are now using local protests to oppose NIMBYs who are challenging renewables projects.

  • On Sept. 19, members of Climate Action Rhode Island – a local offshoot of 350.org – will be on the ground disrupting the entrance to a lavish dinner hosted by the Preservation Society of Newport County, a wealthy architectural conservation group that sued federal regulators over their approval of Eversource’s Revolution offshore wind project.
  • As that lawsuit works its way through the courts, activists are using local opposition to draw public attention to the Preservation Society and portray it as an obstacle to progress on decarbonization with op-eds, meetings, and now more protests.
  • Nick Horton of Climate Action Rhode Island told me that this public awareness campaign may also target the TV network HBO, as its show “The Gilded Age” has been filmed at the Preservation Society’s historic mansions.
  • “I think broadly speaking the environmental movement really needs to start organizing around the threat of NIMBYism, and needs to start identifying these NIMBY organizations as prime bad actors in the pushback against the renewable energy transition,” Horton said.

2. Coos County, Oregon – The Confederated Tribes of the Coos, Lower Umpqua, and Siuslaw Indians have sued the Bureau of Ocean Energy Management requesting it delay an offshore wind lease sale scheduled on Oct. 15.

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Q&A

Eric Dresselhuys, CEO of ESS, Makes the Case for Iron-Flow Batteries

An interview about the politics of energy storage — and whether different technologies can help

Eric Dresselhuys
Heatmap Illustration

While in Anaheim for RE+ last week, I met with Eric Dresselhuys, CEO of long duration iron-flow battery storage manufacturer ESS Inc. We chatted about battery fires, community buy-in, and the future of China policy. I came in expecting optimism and left feeling we need a lot more conversations like this one.

The following is an abridged version of our conversation that has been edited for clarity.

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