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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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Hotspots

Fox News Goes After a Solar Farm

And more of this week’s top renewable energy fights across the country.

Map of U.S. renewable energy.
Heatmap Illustration

1. Otsego County, Michigan – The Mitten State is proving just how hard it can be to build a solar project in wooded areas. Especially once Fox News gets involved.

  • Last week, the Michigan Department of Natural Resources said it wanted to lease more than 400 acres of undeveloped state-owned forestland for part of a much larger RWE Clean Energy solar project near the northern Michigan town of Gaylord.
  • Officials said they were approached by the company about the land. But the news sparked an immediate outcry, as state elected Republicans – and some Democrats – demanded to know why a forest would be cleared for ‘green’ energy. Some called for government firings.
  • Then came the national news coverage. On Friday, Fox News hosted a full four-minute segment focused on this one solar farm featuring iconoclastic activist Michael Shellenberger.
  • A few days later, RWE told the media it would not develop the project on state lands.
  • “[D]uring the development process, we conducted outreach to all landowners adjacent to the project location, including the Michigan Department of Natural Resources,” the company said in a statement to the Petoskey News-Review, adding it instead decided to move forward with leasing property from two private landowners.

2. Atlantic County, New Jersey – Opponents of offshore wind in Atlantic City are trying to undo an ordinance allowing construction of transmission cables that would connect the Atlantic Shores offshore wind project to the grid.

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Policy Watch

How to Solve a Problem Like a Wind Ban

And more of this week’s top policy news around renewables.

Trump.
Heatmap Illustration/Getty Images

1. Trump’s Big Promise – Our nation’s incoming president is now saying he’ll ban all wind projects on Day 1, an expansion of his previous promise to stop only offshore wind.

  • “They litter our country like paper, like dropping garbage in a field,” Trump said at a press conference Tuesday. “We’re going to try and have a policy where no windmills are built.”
  • Is this possible? It would be quite tricky, as the president only has control over the usage of federal lands and waters. While offshore wind falls entirely under the president’s purview, many onshore wind projects themselves fall entirely on state lands.
  • This is where the whole “wind kills birds” argument becomes important. Nearly all wind projects have at least some federal nexus because of wildlife protection laws, such as the Endangered Species Act and Migratory Bird Treaty Act.
  • Then there are the cables connecting these projects to the grid and interstate transmission projects that may require approval from the Federal Energy Regulatory Commission.
  • I’m personally doubtful he will actually stop all wind in the U.S., though I do think offshore wind in its entirety is at risk (which I’ve written about). Trump has a habit of conflating things, and in classic fashion, he only spoke at the press conference about offshore wind projects. I think he was only referring to offshore wind, though I’m willing to eat my words.

2. The Big Nuclear Lawsuit – Texas and Utah are suing to kill the Nuclear Regulatory Commission’s authority to license small modular reactors.

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Q&A

Are Anti-Renewables Activists Going Unchallenged?

A conversation with J. Timmons Roberts, executive director of Brown University’s Climate Social Science Network


J. Timmons Roberts
Heatmap Illustration

This week’s interview is with Brown University professor J. Timmons Roberts. Those of you familiar with the fight over offshore wind may not know Roberts by name, but you’re definitely familiar with his work: He and his students have spearheaded some of the most impactful research conducted on anti-offshore wind opposition networks. This work is a must-read for anyone who wants to best understand how the anti-renewables movement functions and why it may be difficult to stop it from winning out.

So with Trump 2.0 on the verge of banning offshore wind outright, I decided to ask Roberts what he thinks developers should be paying attention to at this moment. The following interview has been lightly edited for clarity.

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