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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

The Summit Carbon Pipeline Is Having a Great Trump Transition

And what renewables can learn from it.

The Summit Carbon Pipeline Is Having a Great Trump Transition

A sprawling multi-state carbon pipeline appears easier to permit and build than wind and solar farms in red states, despite comments the president-elect or his team may have said on the campaign trail. And the answer has to do with more than just the potential benefits for oil and gas.

The Summit Carbon Solutions CO2 pipeline network would criss-cross five states – Iowa, Minnesota, Nebraska, and the Dakotas – connecting dozens of ethanol “biorefinery” plants to carbon sequestration sites for storing CO2 captured while producing the agri-fuel. On paper Summit has its work cut out for it in ways not dissimilar to the troubles facing solar and wind. Land use issues, ecological concerns, the whole lot. And its work has become controversial amongst a myriad of opposition groups I often write about like rural farmers and, of course, conspiratorial NIMBYs – chief among them Vivek Ramaswamy and Robert F. Kennedy Jr., two members of the incoming Trump administration.

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Hotspots

Southcoast Wind’s Last Dash

And more of this week’s top fights around renewable energy.

Map of renewable energy fights.
Heatmap Illustration

1. Nantucket County, Massachusetts – The Biden administration is rushing to finish permitting Ocean Winds’ Southcoast Wind project, a joint venture between EDP Renewables and Engie, before Donald Trump returns to the White House. Questions remain as to whether it can be done.

  • Since Election Day, Southcoast Wind has received full environmental review and received a draft EPA air permit last week. We’re still waiting on a record of decision though and until then, all bets are off.
  • Complicating matters is the town of Nantucket, Massachusetts, which is now fighting the Bureau of Ocean Energy Management to get more money and benefits in the event the project is fully permitted. They’re worried about blade failures.
  • Legal counsel for the town wrote BOEM on Oct. 30 objecting to the agency’s plans for mitigating potential impacts to the town’s historic properties, arguing the Vineyard Wind blade collapse must be fully investigated before any final approvals are granted.
  • Given how Southcoast Wind is close to the finish line at the federal level, I’m watching to see if this dispute with Nantucket becomes a basis for a permitting reversal in the event it can’t make its way through the process before Trump comes into office.

2. Pittsburgh County, Oklahoma – Momentum is building for an anti-wind moratorium in this Oklahoma county home to multiple proposed wind projects.

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Q&A

Can Labor Save Offshore Wind?

A conversation with Ryan Murphy of Climate Jobs Massachusetts

Ryan Murphy of Climate Jobs Massachusetts.
Heatmap Illustration

Today we’re chatting with Ryan Murphy, executive director of the labor-enviro coalition group Climate Jobs Massachusetts. Last week his group along with labor organizations in Rhode Island and Connecticut released a report detailing how they envision the offshore wind industry moving forward in the near term — which Murphy was quick to tell me was in the works before Trump won the election. The report’s conclusion? Labor’s support is going to be necessary for the industry to stand a chance at maintaining growth. You can read it in full here.

The following is an abridged version of our conversation…

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