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Policy Watch

Trump’s Energy Direction: 5 Early Takeaways

And more on this week’s top policy and energy news.

Trump and wind.
Heatmap Illustration/Getty Images.

Trump’s energy direction – We’re far enough into the Trump 2.0 transition that I can offer a few specific insights having covered him the first go-around.

  1. Trump’s pick for Interior Secretary Doug Burgum indicates any form of energy or resource extraction prevalent in his state of North Dakota could be safe from the wrath of political meddling in permitting. That includes onshore wind and battery metals.
  2. Trump’s selection for Energy Secretary – gas CEO Chris Wright – indicates even more reason for optimism about mining given the heavy overlap between companies in historic fracking development and U.S. lithium industry growth.
  3. Trump’s EPA pick Lee Zeldin previously backed legislation to ease permitting for renewable energy, though I anticipate from his lack of agency leadership experience that he’ll be more deferential to political directions than a former governor or CEO.
  4. Cantor Fitzgerald CEO Howard Lutnick was chosen for the Commerce Department, which will dictate tariff proposals. Although Cantor Fitzgerald itself supports the “megatrend” that is the energy transition, I expect China hawkishness to prevail above fear of short-term impact on American renewables projects.
  5. Even with all this, you should expect the deputy picks to matter for solar and wind. Trump 1.0 began with figurehead agency leaders (Ryan Zinke at Interior, Scott Pruitt at EPA) and an empowered assistant administrator, who was usually a former lobbyist or ideologue. I’m anticipating the same here.

New hydrogen hub backing – The Energy Department has announced more than $2.2 billion in cost-sharing agreements with two more hydrogen hubs in the Midwest and Gulf Coast.

  • Both hubs appear to rely on both renewable energy and natural gas to get their jobs done. Given the uncertainty surrounding Trump’s views on hydrogen, it’s likely this move is intended to get out ahead of any effort to claw back funds from the infrastructure law and Inflation Reduction Act.

Here’s what else I’m watching…

A Virginia Circuit Court has struck down Governor Glenn Youngkin’s attempt to withdraw the state from the Regional Greenhouse Gas Initiative.

Massachusetts Governor Maura Healey signed new legislation creating new tax breaks and financing for offshore wind as she defiantly insists the industry will continue to grow during the Trump 2.0 era.

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Spotlight

Scoop: The Draft Order that Offshore Wind Opponents Sent to Trump

If even only a few of these ideas are enacted, it would be a harbinger of doom for wind energy in America.

Trump and offshore wind energy.
Heatmap Illustration/Getty Images

Major groups in the anti-offshore wind movement are going big, submitting a lengthy policy wish list to the Trump transition team, according to documents obtained and first reported by Heatmap News.

Key organizations in the movement against offshore wind submitted a draft executive order “on the suspension of offshore wind development” to the transition team. According to the draft, not only are activists asking for a pause on new permits for offshore wind but also for a stop-work order on all projects currently under construction. They’re also asking for the Health and Human Services Department to become a weapon against the growth of renewable energy, requesting studies into the health and environmental effects of wind turbines and transmission cables.

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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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