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Q&A

The Transmission Study Making the Rounds on the Hill

And more from my conversation with Ray Long, president and CEO of the American Council on Renewable Energy

Ray Long
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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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Q&A

An America First Strategy for Renewable Energy?

A conversation with Tim Brightbill of Wiley Rein LLP

Tim Brightbill of Wiley Rein LLP.
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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.

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Policy Watch

The IRA’s Coming China Change

And more of the week’s biggest news around renewable energy policy.

Trump.
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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.

  • 45X is supposed to supercharge production of battery and solar components, as well as key minerals and materials for those components that are largely imported from China or what U.S. trade officials believe are Chinese pass-throughs.
  • Some U.S. companies are now quietly urging Congress to enact a “foreign entity of concern” requirement to 45X that would essentially stop battery and solar manufacturing plants with Chinese business involvement from qualifying.
  • Why? Well, doing this would definitely insulate the credit from GOP repeal by tying it not to rapid decarbonization but instead American blue collar jobs.
  • Patrick Donnelly, chief commercial officer for Anovion, told attendees of a Hill briefing I moderated earlier this week that he wants to see this happen because it would be a “game changer” for domestic manufacturing. “I’ve heard some Republicans talking about it already.”
  • But it could also undermine the effectiveness of the credit for climate purposes. Similar requirements were tacked onto the IRA’s EV consumer credit that curtailed its reach and meant many cars couldn’t access the benefit.

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.

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Hotspots

Is Trump Already Killing Off Renewable Energy Projects?

And more of the week’s news around renewable energy conflicts.

Map of renewable energy conflicts.
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Queens County, New York – TotalEnergies’ first Attentive Energy offshore wind project might be the canary in the Trumpy renewables coal mine.

  • The New York wind project in the bight has been indefinitely paused, according to TotalEnergies CEO Patrick Pouyenne, meaning we have our first offshore wind derailment of the Trump era, many weeks before he’s even taken office.
  • It’s unclear how connected Trump is to the move. Attentive Energy also pulled out of New York state’s fifth offshore wind solicitation before this news dropped, which also arrived days before the Bureau of Ocean Energy Management implemented new requirements for projects built in the area where the project would be built.
  • However, remember that even though Attentive Energy has little opposition in New York State, anti-offshore activists are aggressively challenging efforts by New Jersey state to buy power from the project.
  • We’ll have to wait and see if this decision is a domino for other offshore wind curtailments. But we’re already seeing evidence, as Shell announced hours ago it is no longer investing in new offshore wind projects.

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.

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