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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.

  • If successful, it would totally neuter permitting powers in this sector, letting developers and manufacturers avoid a lengthy federal approval process. SMR startup Last Energy is also involved in the lawsuit.
  • The lawsuit cites the Supreme Court’s recent decision to undo a longstanding principle in American regulatory law that courts should defer to agency experts when interpreting vague language in statute. As Heatmap’s Robinson Meyer explained when that ruling came down, this means judges themselves get to decide if a law explicitly gives an agency authority to do something.
  • The lawsuit argues the nation’s primary nuclear law, the Atomic Energy Act, did not give the NRC the discretion to regulate SMRs. “If Congress wanted the NRC to have plenary authority in this area it needed to speak clearly. Instead, it has unambiguously indicated the opposite.”
  • I expect more of these lawsuits to come down the pike in the coming months, as the federal government under Trump will have the power to settle those cases and offer plaintiffs favorable deregulation through that process.

3. Biden’s parting words – The Biden administration has finished its long-awaited guidance for the IRA’s tech-neutral electricity credit (which barely changed) and hydrogen production credit.

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Spotlight

Inside the Data Center Lobby’s Quiet Ad Blitz

What’s the deal with all those “America Connects” videos?

Data center.
Heatmap Illustration | Unsplash

The data center lobby is launching a big PR blitz on television and social media, racking up millions of views on evidently AI-generated content boasting economic impacts from new projects and hitting against criticism around energy and water use.

In an interview with me Wednesday, Data Center Coalition CEO Josh Levi explained how and why his organization – the largest and most prominent data center trade group – stood up an “evolving” national advertising campaign called America Connects.

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Hotspots

The Data Center Most Likely to Get Investigated by a Democratic Congress

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

Map of data center and renewable energy fights.
Heatmap Illustration

1. Richland Township, Louisiana - The Meta Hyperion project is suddenly now a central focus of activists and media coverage, just as it is seeking environmental permits for a key gas pipeline.

  • A number of painful investigations about Hyperion published in the last week: a New York Times profile of the local negotiations surrounding the deal that involved interviews with more than 40 people, painting the entire development as secretive. Then came an article from States Newsroom’s Louisiana affiliate claiming Governor Jeff Landry’s staff signed more than 100 NDAs, including some with Meta. Environmental advocates are trying to marshal up more public opposition to the project; on Monday, Earthjustice and advocates they’re working with on the ground in the Bayou are holding a press conference about Hyperion.
  • Why all the attention now? For starters, the state regulatory commission is considering whether to approve more gas plants at the project site. In addition, a Federal Register notice published last week disclosed ETC Tiger filed paperwork with the Federal Regulatory Energy Commission to get authorization for a gas pipeline that’ll pump roughly 1 million dekatherms per day to Hyperion. (A single dekatherm is a common measurement for gas transport volume equal to about 1,000,000 BTUs, so you do the math on how massive that pipeline is going to be.)
  • Louisiana is a hot bed for environmental justice advocacy because of Cancer Alley and a long legacy of offshore oil and gas development. I expect that as we saw under Trump 1.0, this amount of media coverage will lead to this project becoming an oversight topic in Congress, especially given the likelihood of prolonged federal review.

2. Memphis, Tennessee – Hyperion won’t be the first data centers that House Democrats go after if they retake the lower chamber in Congress though – that looks like it’ll be xAI’s Colossus projects. Congrats, Elon!

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Q&A

Is Trump to Blame When Data Centers Choose Gas?

A conversation with Peter Gardett of Noreva

Is Trump to Blame When Data Centers Choose Gas?

This week’s conversation is with Peter Gardett, CEO of the AI-powered energy market research firm Noreva. Before helming the price and deal research consultancy, Gardett built a strong repertoire as an energy expert spearheading analysis at S&P Global, IHS Markit, and Argus Media. I reached out to Gardett because I wanted a candid conversation about the fuel choices data center companies are making under the Trump administration and, to my delight, Gardett was open to sitting in my hot seat.

Let’s get into it then. The following conversation was lightly edited for clarity.

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