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Policy Watch

Trump’s Energy Direction: 5 Early Takeaways

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

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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

The New Push for Underwater Data Centers

Exploratory projects are making a splash in Maine and Alaska.

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Wires and water.
Heatmap Illustration/Getty Images

A legal brawl is brewing over what could be the nation’s first underwater data centers.

Two subsidiaries of a new LLC named DeepGreen have applied for “preliminary” permits from the Federal Energy Regulatory Commission that would give four years of permission for studies and analysis towards constructing underwater data centers off remote coastlines in Maine and Alaska. The data centers as proposed would be powered entirely by tidal energy, as in, the power of waves themselves – a technological innovation from hydropower still being piloted around the world. Project descriptions submitted to FERC lay out what these data centers would look like in broad strokes: hundreds of hydrokinetic turbines, dozens of underwater “data center pods,” and miles of subsea cable. The permits would not authorize construction, which would need its own lengthy review process. But these early green lights would tee both areas up for years of potential conflict over hypotheticals that feel real to those on the ground.

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Hotspots

The Solar Opponents Begging Trump to Intervene in Michigan

And more of the week’s biggest fights around project development

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The United States.
Heatmap Illustration/Getty Images

1. Ottawa County, Michigan – A congressional district House Democrats are targeting for control of the Lower Chamber is now a battleground over solar development on farmland, and I’m waiting to see if President Trump gets involved.

  • On Sept. 24, the Michigan township of Zeeland wrote a letter to the president – and reportedly Agriculture Secretary Brooke Rollins – requesting the federal government intervene in the development of RWE’s utility-scale Silver Maple Solar project. The letter to Trump which is public requests the president visit Zeeland and the project site to “provide an opportunity to meet directly with local farmers, business owners, elected officials, and residents who are living with the consequences of the poor policies you are fighting against.”
  • Shortly thereafter, Zeeland Township supervisor Kerri Bosma, who authored the letter, met with Rep. Bill Huizenga and presented him with a copy of the letter. “Thank you for reaching out Kerri and keep up the fight against this Lansing big government takeover!” Huizenga said on Facebook. Huizenga’s office did not respond to a request for comment on how they would support this request further.
  • This is remarkable because local officials are beckoning for Trump to arrive at a time when he’s historically unpopular and Huizenga’s congressional district is one being targeted by the Democratic Congressional Campaign Committee in this year’s midterm elections as a priority. Maybe this is about ginning up partisan red meat, as Huizenga’s opponent, State Sen. Sean McCann, has been publicly supportive of more solar development in agricultural communities.
  • Locals appear most irate with the state permitting primacy law which allows the state regulator, Michigan Public Service Commission, to supersede local opposition toward renewable energy projects. So far, the legality of that power is withstanding court challenges, and it’s unclear to me how the federal government could in any way stall this large solar farm aside from helping out in that legal effort on behalf of localities.
  • Clearly, RWE is confident they can go ahead – they just resubmitted their application to build the project with the MPSC, citing the primacy law’s survival in the courts.

2. Texas – The Lone Star State sure is action-packed right now, huh? Let’s break down a few of the most important fights.

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Q&A

Why the Senate Permitting Bill Isn’t a ‘Grand Bargain’

A conversation with Josh Freed of Third Way

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Josh Freed.
Heatmap Illustration

This week’s conversation is about the big energy policy story of the week – month? year? – which is the new bipartisan permitting deal in the U.S. Senate. As my colleagues and I were feverishly working on our mega-explainer about the bill, I rang up Josh Freed, founder of Third Way’s energy and climate program, who graciously picked up the phone despite traveling in London. Freed, a fellow energy wonk-slash-musician, was gracious to jam out with me on all the things I felt you needed to know about this bill – including whether there really is only one shot to get what he believes would be landmark legislation into law.

The following chat was lightly abridged for clarity. Let’s dive in.

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