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And more from my conversation with Ray Long, president and CEO of the American Council on Renewable Energy
This week’s conversation is with Ray Long, president and CEO of the American Council on Renewable Energy, or ACORE. A representative of one of Washington’s most influential climate tech policy trade groups, Long is also a seasoned veteran of the energy sector across fossil and carbon-free power and now an industry thought leader based in Washington. I caught up with him at ACORE’s Grid Forum last week and asked him how companies are doing against NIMBYs.
Developers of gas infrastructure – are they spending more, less, or the same as renewable energy developers on community engagement? Who spends more on community engagement?
I just don’t know. I have no idea. It’s hard to gauge. And let’s talk about why – each company doesn’t disclose how much they spend on community engagement. You know, it’s not like you can go see who is registered to lobby in different areas, it’s not clear. I suppose you could go back after the fact and look at community benefit funds and those sorts of things that get put together but I’m just not sure if that’ll give you the snapshot that you’re looking for.
I’m curious if you feel if developers in renewable energy are spending enough of their capital on getting the consent of host communities.
Having worked for a renewable developer I can only speak from the perspective of the experience I had there. My sense is, across the industry, you’ve got different levels of companies that have different levels of sophistication and different levels of capabilities to do those things. And I’ll say this: even the sophisticated companies that are going in early, having the conversations and doing all the things that I would say would be a strategic way to getting it done… even they’re running into opposition. I don’t think it’s really any different than some of the fossil plants in my experience where there has been politicization.
Given the various degrees of sophistication and the various degrees of capacity, how would you score the renewable energy industry’s success rate at dealing with project opposition?
One of the places you can look at data is NEPA – the environmental impact statements. You know that NEPA impacts wind, solar, transmission, and fossil. Stanford [University] did this really interesting study where they looked back 10 years and they pulled all the environmental impact statements that had been submitted and then they graphed it, and they looked at it from the standpoint of which projects had been delayed, litigated, and ultimately canceled. Going in, if you go into Democratic offices and you talk to them in Washington, the impression a lot of us had was, I’d guess fossil projects would be the first. They’d be delayed the most, litigated the most, canceled the most. But it wasn’t. It was solar, wind… fossil’s fourth. That study was fascinating. That’s one of those things making the rounds now on the Hill as Democratic offices are considering the permitting and transmission bill.
But so many of these projects don’t require a NEPA review. How is the industry doing when it comes to dealing with the local county clerks?
I think it really depends on which technology, which company is going in. What’s their approach to it. It’s really hard to give a grade to the industry as a whole.
What would you say to a developer on best practices for community engagement in your view?
Number one, go into a community as soon as you think you have a project you’re going into. Start to talk to local people there about what their interests are and understand why. You’ve got to have a sense of curiosity, and develop an understanding of what people’s motivators are.
The second thing is hire local. Get some local people that you’re going to work with, who understand the community and can best advise you on it.
The third thing is, as you look to pull your project together and you think about your permitting structure, start to build in those things that the community cares about. Only then, when you have a line of sight on doing that, start the permitting process.
I certainly hope companies heed your advice.
Well if you look at the success record, companies that do that have a higher success record than those who don’t.
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A conversation with Tim Brightbill of Wiley Rein LLP
Today we’re talking with Tim Brightbill, a trade attorney at Wiley Rein LLP and lead counsel for a coalition of U.S. solar cell and module manufacturers – the American Alliance for Solar Manufacturing Trade Committee. Last week, his client won a massive victory – fresh tariffs on south Asian solar panel parts – on the premise that Chinese firms are dumping cheap products in the region to drive down prices and hurt American companies. It’s the latest in a long series of decadal trade actions against solar parts with Chinese origin.
We wanted to talk to Tim about how this move could affect developers, if an America-first strategy could help insulate solar from political opposition, and how this could play out in next year’s talks over the future of the IRA. The following conversation was lightly edited for clarity.
If you were talking to a developer, what would you tell them should be their takeaway?
I think the takeaway is that these determinations appear to go a long way toward addressing the unfair trade that’s been present in solar panels, solar cells, for more than a decade. And I think these duties do send a signal that will help build up domestic manufacturing. We’ve seen historic investment next to the Inflation Reduction Act in U.S. solar manufacturing facilities – in places like Georgia with QCells, in Ohio for First Solar – and we’re at a critically important point here.
Those investments were being undercut by this unfair trade by these Chinese-owned companies. We think now hopefully that will be addressed and that should lead to a bright future for solar deployment, the growth of solar power in the United States.
How does the pursuit of a fairer trade landscape globally in the broader sense impact support for solar energy in the U.S.? I hear often that a “made without China” approach can shore up support for renewables. Do you find that to be the case?
Definitely, I find that to be the case.
The U.S. industry invented solar technology and perfected it. And then unfortunately, it was virtually wiped out due to the unfair trade practices of China and these Chinese-owned companies. If we want to have solar and not be dependent on other countries for renewable energy needs, the best way to do that is to have a strong manufacturing base and a strong supply chain.
What do you think the direction of this is going to be under the next administration? Even more ratcheting up of trade measures?
Well the trade laws are a calculation, right? They’re based on rules, they’re not political. I don’t expect this administration to necessarily change individual trade cases. But I do think trade policy will change in a way that tries to address these Chinese-owned companies that undercut the rest of the world.
For example, the IRA provides right now potential benefits for any company that sets up shop here, even if they are owned by a foreign entity of concern. That seems like something this administration is going to address. If you’re going to receive IRA money, you should not be affiliated with a foreign entity of concern.
Given the potential for an impact on pricing, combined with the impacts on limiting the tax credits in that way – wouldn’t that make it harder to build projects in the U.S. short term?
I don’t think so. The solar panels themselves are not anywhere close to the majority of the cost of a project. There are so many other things that impact project cost, from permitting to the land. I don’t think this will impact the costs of deployment of solar. It will just give us a more secure supply chain that is either here in the United States or at least more regional in nature, which is going to be better for the industry.
With foreign entities of concern – are you referring to 45X? You’re anticipating that tax credit will change with respect to the IRA?
I expect the Trump administration will focus on that. There are already other related products under IRA where “foreign entity of concern” participation is not allowed for those tax credits. So it seems like a ready fix to ensure that is the same for solar technologies.
Is that bad news, or is that saving the credit?
I don’t think it’s bad news. I think it’s good news. It means more of the credit will be available to U.S. companies and our allies who might want to set up here as well.
If Chinese companies want to come here and set up in the United States, that’s great, but they shouldn’t also receive subsidies because those are the same companies that have harmed our industry with unfair trade for more than a decade.
Okay enough serious talk. Can I ask you a fun question: what was the last band you listened to?
It’s sort of dad rock-ish right now: Spoon. When I get my Spotify Wrapped, it’s going to be Spoon. That’s my favorite rock band right now.
And more of the week’s biggest news around renewable energy policy.
Sourcing requirements – As we explain in our Q&A today, there’s momentum building in Washington, D.C., to attach new sourcing requirements to an IRA credit for advanced manufacturing known as 45X.
Virginia’s planning – The state of Virginia is looking at its own plans to override local objections, which would make it one of the few GOP-led states to do so.
Here’s what else we’re watching…
And more of the week’s news around renewable energy conflicts.
Queens County, New York – TotalEnergies’ first Attentive Energy offshore wind project might be the canary in the Trumpy renewables coal mine.
Clinton County, Michigan – EV manufacturing news in Michigan is showing that fallout from Trump’s election may not be limited to offshore wind, and could creep into other projects facing grassroots opposition.
Linn County, Iowa – Even carbon pipelines facing opposition are getting canceled right now, after Wolf Carbon Solutions rescinded its project application to the Iowa Utilities Board.
Here’s what else we’re watching right now …
In California, the city of Escondido has extended its moratorium against the Seguro battery storage project. (Consider us shocked.)
In Illinois, an Acconia Energy solar farm’s application with the Will County government is being delayed over local opposition.
In Nebraska, NextEra is facing resistance to a new 2,400 acre solar farm in Lancaster County.
In Oklahoma, momentum for a moratorium is building in Lincoln County, an area once friendly to wind development.
In New York, the small town of Glenville rejected a small solar project proposed by a Nexamp subsidiary.