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Policy Watch

What Trump’s NEPA Wrecking Ball Means for Renewables

And more of the week’s top policy news.

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Environmental review, mapped.
Heatmap Illustration/Getty Images

1. New NEPA world – The Trump White House overnight effectively rescinded all implementing rules for the National Environmental Policy Act, a key statute long relied on by regulators for permitting large energy and infrastructure projects.

  • What does this mean for renewables developers? Earthjustice attorney Kristen Boyles told me today that even though fewer regulations sounds nice, Trump’s implementation strategy is unlikely to ease minds on renewables permits.
  • A big reason is confusion. Litigation that anti-renewables advocates filed against Biden’s permits will be considered under the previous NEPA regulations, while Boyles expects regulators to use a new attempt at NEPA implementation in an uneven way that privileges fossil fuels projects.
  • An example is “cumulative impacts,” a term historically used by agencies to look at comprehensive environmental impacts under NEPA. Previous challenges to the cumulative impacts of renewables projects will continue; meanwhile, the new Trump memo scrapped the definition of the term and dissuaded agencies from using it. What Boyles told me is this will simply put more discretion at the hands of political officials in permitting agencies.
  • “When you get rid of the definition, you’re going to still have a fight,” she said. “You now no longer have that common basis of understanding of what is a definition.”
  • When I first asked Boyles to tell me what comes next, she started hysterically laughing: “I’m not laughing because it’s a bad question. I think it’s a question that everybody’s asking.”
  • Heatmap’s Katie Brigham has a deeper dive on the Trump rule withdrawal here.

2. Our hydrogen hero – Senate Environment and Public Works Chair Shelley Moore Capito this week came out against any freeze for a hydrogen hub with projects in her state, indicating that any clampdown on H2 projects from the federal level may get Republican pushback.

  • Capito took to TV this week and told West Virginians the ARCH2 Appalachian hub has received money it needs to keep going but that the future of that financing is uncertain.
  • “I think there is some concern about going forward,” she told local affiliate WTRF. “I’m going to be in there fighting for this money to make sure the hydrogen hub is not just successful but can go forward, and I do have great confidence that that’s what the end result is going to be.”
  • We previously told you the ARCH2 hub and other hubs backed by the Biden administration were experiencing financial and logistical hurdles. Can’t imagine any of this Trump uncertainty is helpful either, but I bet having the top Republican on the Senate’s environmental committee in your corner certainly is.
We’re also closely monitoring the situation at EPA, where new Administrator Lee Zeldin has started to target grant recipients and post some salacious allegations on X

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Q&A

How to Channel Voters’ Anxieties About Data Centers

A conversation with the Guardrails Alliance’s Shaunna Thomas.

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.

After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.

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Hotspots

Consider the Lobstermen Affected by New York’s Empire Wind

Plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.

  • In late October, a family of lobstermen sued Equinor in federal court claiming the company’s compensatory mitigation program is failing to adequately make up for alleged negative impacts to lobster fishing grounds in the New York Bight. According to the lawsuit, the wind project irreparably hurt fishing in previously trafficked waters. The suit also claims that Empire Wind construction destroyed lobster fishing pots and seeks at least $75,000 in damages as well as punitive damages and attorneys’ fees.
  • The lawsuit is the first I have seen involving someone in aquaculture suing for damages over negative impacts of an already-constructed wind project, and it carries outsized implications as the Trump administration remands without vacatur the construction and operations plans for other offshore wind farms. This case is far from being decided, but that doesn’t matter: It is precisely the kind of complaint that Trump officials are likely to consider as they mull revisions to operational plans.
  • An Equinor spokesman declined to comment on the case, telling me they don’t speak on pending litigation.

2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.

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Spotlight

Data Center Developers Can’t Pay People Enough to Accept Them

Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.

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Donald Trump and data center protesters.
Heatmap Illustration/Getty Images

This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.

Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.

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