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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

How a Fight over Cables Could Kill Offshore Wind in New Jersey

Let's dive deep into the campaign against the so-called “high-risk” cables.

Cable and offshore.
Wiki Commons / Joel Arbaje / Heatmap

One of the biggest threats to American offshore wind is a handful of homeowners on the south Jersey shoreline spouting unproven theories about magnetic fields.

Within a year of forming, the activist group “Stop The High-Risk Cables” has galvanized local politicians against the transmission infrastructure being planned for wind turbines off the coast of New Jersey known as the Larrabee Pre-built Infrastructure. The transmission route, which will run a few miles from the beaches of Sea Girt, New Jersey, to a substation nearby, is expected to be a crucial landing zone for power from major offshore wind projects in south Jersey waters, including Atlantic Shores, a joint venture between EDF Renewables and Shell that received final permits from federal regulators last week.

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Hotspots

Vineyard Wind’s New Fight

And more of the week’s biggest conflicts in renewable energy.

Map.
Heatmap illustration.

1. Nantucket County, Massachusetts – A new group – Keep Nantucket Wild – is mobilizing opposition to the Vineyard Wind offshore wind project, seeking to capitalize on the recent blade breakage to sever the town of Nantucket’s good neighbor agreement with project developer Avangrid.

  • Keep Nantucket Wild was started weeks ago by raw bar restaurateur Jesse Sandole and yoga studio owner Evie O’Connor. The group already has amassed more than 1,000 signatures on a petition to the town select board to pull out of the good neighbor agreement.
  • Town officials have previously said they will renegotiate the pact, which included a $16 million company payment into a community fund and promises to reduce nighttime visual impacts.

2. East Baton Rouge Parish, Louisiana – One lowkey local election this fall may decide the future of Louisiana’s renewables: the swing seat on the state’s Public Service Commission, which is being vacated this year by a retiring moderate Republican.

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Policy Watch

Power Line Planning

And more of the week’s top policy news.

Power Line Planning
Olivie Strauss / Severin Demchuk / Heatmap

Transmissions on transmission – The Energy Department last week released a must-read national planning study for transmission to connect renewables to the grid through 2040.

  • The takeaway? We could reduce billions of tonnes of CO2 emissions with interregional transmission and constraining development would require new nuclear and hydrogen energy to meet emission reduction targets, instead of solar, wind, and batteries.
  • The lengthy report didn’t go into the permitting challenges at all though and the mapping does read aspirational if you know the context.
  • Regardless, we hope to see you on DOE’s webinar on the study next Wednesday.

SCOTUS shrugs for once – The Supreme Court declined to stay challenges to the EPA’s methane and mercury air pollution regulations, meaning at least two Biden regulatory tailwinds for renewables developers remains in play.

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