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Policy Watch

What Trump’s NEPA Wrecking Ball Means for Renewables

And more of the week’s top policy news.

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 New NEPA world – The Trump White House overnight effectively rescinded all implementing rules for the National Environmental Policy Act, a key statute long relied on by regulators for permitting large energy and infrastructure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

Trump Taps Nashville Legend to Fight Solar and Wind Farms

And data centers might be collateral damage.

Farmland.
Simon Abranowicz | Getty Images | Unsplash

After derailing gigawatts of renewable power with a permitting freeze, the Trump administration is expanding its war on renewable energy, retaining one of country music’s biggest stars in a PR offensive against utility-scale projects on “prime farmland.”

The administration recently onboarded John Rich – one half of the stadium-packing American musical duo Big & Rich – to be Trump’s “special envoy for American landowners.” Rich entered activism around landowner rights last January when he backed opponents fighting a large Tennessee Valley Authority transmission project routed through his home county of Cheatham, Tennessee. This led to him joining the Trump team, where he’s fashioning himself as a go-to guy and cheerleader for anyone who wants Trump to help stop a solar or wind farm they don’t want built.

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Hotspots

Data Centers Are the Election Year Villain

And more of the week’s top news around project fights.

Data Centers Are the Election Year Villain
Heatmap Illustration

1. Kansas City, Missouri – Data centers are so toxic that politicians are using them as boogeymen in totally unrelated policy discussions.

  • All week I’ve been thinking about Missouri, where a widely-screened TV campaign ad is airing screeds against AI hyperscale projects to sell a constitutional amendment initiative up for a vote in this year’s November elections. “That hum is the sound of Big Tech making money on online gambling, for porn,” says a nameless man in the ad. “Amendment 5 makes Big Tech pay so you don’t have to. Yes on Amendment 5.”
  • What does Amendment 5 do? Based on the ad, you would think it was focused on tax exemptions for data centers. But no – a yes vote supports cutting the state income tax, a proposal backed by Republican Gov. Mike Kehoe.
  • The ad is misinformation and a mind-blowing use of a confusing conversation around tech infrastructure most were unfamiliar with before this year. Per reporting by the Missouri Independent, the state’s existing tax exemptions for data centers would stay in place if the amendment was adopted.
  • My gut tells me this is only the beginning of the data center industry’s transformation into an election year villain.

2. Ingham County, Michigan – We have our first major anti-data center candidate in a Democratic congressional primary.

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Q&A

Why Data Center NDAs Are a Big Mistake

A conversation with Grant Gutierrez of Carbon Direct

Why Data Center NDAs Are a Big Mistake
Heatmap Illustration

This week’s conversation is with Grant Gutierrez, head of community impacts at carbon management company Carbon Direct. This week Carbon Direct published a white paper Gutierrez authored on opposition around data centers he’s studied. His research reinforces much of what Heatmap Pro has uncovered, but I was particularly intrigued by a topline finding – that transparency is the most common thread in the 46 data center fights he looked into. Was he seeing what I’ve been seeing? So I asked him to hop onto a Zoom call and let me know his thoughts.

The following conversation was lightly edited for clarity.

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