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A conversation with Devin Hartman of R Street
Today’s special Q&A is with an old source of mine, Devin Hartman, energy and environment policy director for the conservative D.C. think tank R Street.
When I used to cover Congress, Devin was one of the few climate-minded conservatives willing to offer a candid, principled take on what could happen in that always deliberative body. I decided for our year-end edition to ask him a lot of questions, including an important one: will Trump make it easier or more difficult to permit solar and wind projects?
His answer – that it is very much possible – led us once again down the rabbit hole of conspiracy-powered politics.
The following interview has been lightly edited for clarity.
Let’s start with the U.S. climate elephant in the room – what do you think will happen to the Inflation Reduction Act next Congress?
I have not talked to any Republican staff, members of Congress, or strategists that think full IRA repeal is on the table. Just nip that conversation in the bud right now. That said, they will need to find where to cut some tax credits to pay for the tax extensions. There will be strong pressure to modify those subsidies. So I think subsidy reform is very much on the table but full IRA repeal is not. More specifically, Republicans will be eyeing the electric vehicle tax credit and the PTC and ITC that primarily focus on wind and solar.
Most of the expenditures under IRA are subsidies for mature technologies. I think what you’re going to see is something that is a phase down if not a staggered phase out as on the table for mature technologies, especially wind, solar and EVs.
The thing that’s missing in this narrative so much is that in hindsight the Inflation Reduction Act is not nearly as much of a climate savior as its proponents claim. Folks realized we need all this permitting, all this regulatory reform so we can actually build this stuff and a lot of what we were recognizing is that before the IRA passed, the private sector was going to fund a massive amount of new infrastructure, especially mature technologies. But you couldn’t get the stuff built. So the policy discussion a few years ago really should’ve focused on regulatory and permitting reform… and it prioritized subsidies mostly instead.
Okay. Moving on, folks in Trump’s orbit proffer in conspiracies and misinformation, disinformation about renewable energy – are you at all concerned about the next Trump administration turning against individual solar and wind projects in the permitting process based on those views?
Oh yeah. We’ve seen this getting done under the past several administrations — more polarization. A lot of stakeholders have called this the Keystonization of energy permitting. That’s really concerning.
I always think of presidents or any elected official as more followers to their political milieu than leaders in their own right. We started to see this with President Obama where some of his advisors and his team said, why does something like the Keystone XL matter that much? It doesn’t make or break that much… but you saw a lot of this technology and project tribalism really kicking in with different groups and that clearly influenced political decision-making. It started removing the permitting process from an objective criteria-based approach. It’s really concerning to see this trend move forward. And subsequently on both sides of the aisle you’ve seen this temptation, mostly with presidential administrations given their authorities, these [Council of Environmental Quality] processes or other things that might put their thumb on the scale in favor of some resources over others.
I would note the NEPA reforms that Trump got done on his watch. Those NEPA reforms were cheerleaded by the wind and solar industries. That’s when you started to see the environmental groups really oppose those NEPA reforms but the clean energy groups really wanted them.
That may be true, but activists fighting projects tell me they’re really excited for Trump. These activists believe this – as you put it – Keystonization is going to help them and we're going to see the Trump administration become a more difficult environment to get solar and wind permits on a case-by-case basis. Do you see that happening?
I would be worried if we started to see indications of that. It’s always possible.
Senator Jim Risch recently said he expects the Trump administration to issue a project-by-project executive order. Do you imagine anything in that world is possible?
It’s possible.
Where we’ve seen more of the red-blue divide is at the state level. That’s our biggest concern… oof. That’s been trending in the wrong direction really severely in recent years. That might be the single biggest long-term hindrance to energy infrastructure development and by extension decarbonization. That issue set is really tough. And that unfortunately you’ve seen some of the fault lines–
–Sorry to interrupt. Do you mean the blue states trying to overrule local control versus the red states letting localities have the final say, like Ohio?
Yeah. And some of that can be philosophical, irrespective of the technology. Some of it is home rule versus state government. That is a factor in it.
But going back to some of the misinformation and disinformation stuff… that’s been concerning.
When we’ve surveyed a lot of these developers and asked what is motivating some of this right now? So much of it is Facebook campaigns that were promoting false perspectives on the consequences of infrastructure development. Things like the flicker effect from living near wind turbines causing health effects. A lot of stuff on electro-magnetic fields. There was just a lot of bad information out there. That has generated in some cases opposition from communities that is misguided and unfortunate.
One of our big recommendations with this is we learned a lot from the Telecommunications Act in the ‘90s. Whether Congress pursues something similar for energy infrastructure, I don’t know. But maybe at the state level at least we should have this conversation where you need to actually demonstrate harm if you actually have legitimate concerns about health effects. [It’s] that standing and criteria-based determination approach to this, rather than this sentiment based approach that could be based on utter nonsense.
Is there a federal solution to this problem?
In permitting, we’ve had this conversation for a while now about community engagement – which progressives call for – and judicial review, which is something conservatives have been calling for. I think there’s actually some reinforcing and mutually beneficial reforms that can be done in tandem. Things like narrow standing to individuals and entities actually affected by the infrastructure, and that standing has to be tied to demonstrate harm under these statutes – that’s a piece that can be there.
But the other thing you do is come in with good information. You have standardized packets of information to help communities and siting bodies make more informed decisions. Alright, there can be the potential economic development benefits to your community. Oh also, we’re going to be honest about any kind of drawbacks – legitimate local health and ecosystem effects. You create a system that naturally filters out a bunch of nonsense and also drives in good information. Those concepts can be reinforced.
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A conversation with Jillian Blanchard of Lawyers for Good Government about the heightened cost of permitting delays
This week I chatted with Jillian Blanchard, vice president of climate change and environmental justice with Lawyers for Good Government, an organization that has been supporting beneficiaries of the Inflation Reduction Act navigate the uncertainties surrounding tax credits and grant programs under the Trump administration. The reason I wanted to chat with Jillian is simple: the IRA is under threat for the first time under a Republican Congress. I wanted to understand how solar and wind projects could be impacted by the House Republican reconciliation bill and putting IRA tax credits in doubt. I learned a lot.
The following conversation was lightly edited for clarity.
Okay, Jillian, what’s the topline here? How would the GOP reconciliation bill impact individual projects’ development?
There are big chunks of the reconciliation bill that will have dramatic impacts on project development, including language that would repeal or phase out bipartisan and popular tax credits in a way that would make it very, very difficult to invest in projects. I can get into the weeds next.
But it’s worth saying first – the group of programs aside from tax credits that [House Republicans] would repeal represents every single part of America. Hundreds of projects that will not go forward if these programs are not going well. And they have several legally obligated grants that EPA has already mucked up in a litany of ways. But what they’re proposing to do is to pull the rug out from under those programs. On top of that they want to pull any unobligated funding out.
I think it’s extremely misrepresentative to say these are not big cuts. They’re significant cuts to clean air and clean water across the board.
Help me get into the weeds about how phasing out the credits will make it harder to invest in a project.
Right now, a bank might want to invest a certain amount of money in a clean energy project because they know on the back end they can get 30% or 40% back on their investment. A return through tax credits. They can bank on that, because tax credits are a guarantee.
Was that an intentional pun? “Bank”?
Yeah, it is. I love a good pun. You opened the floodgates, that was a mistake.
But anyway, the program itself was supposed to be around until at least 2032 and the bank could bank on those tax credits. That’s a big runway, because projects could get delayed and you could lock in the credit as soon as you started construction.
Now they’re doing a phase-out approach where if your project is not placed into service before a certain date, you don’t avoid the phase out. You don’t get any protections if you’re starting your project now or next year. It has to be placed in service before 2028 or else your project may not be eligible. You are constructing it, you are financing it, but then through no fault of your own – a storm or whatever – then suddenly that project is no longer entitled to get 30% or 40% back.
That’s a big risk. And banks don’t like risk.
Opposition on the ground also delays projects the way a storm does. Would this empower those opponents?
Oh, totally. Totally. If anyone wants to fight a project, a bank might be even less likely to invest in it. The NIMBYs for that particular project become a risk.
What would you tell a developer at this moment who is wondering about the uncertainty around the IRA?
I would tell them that now is the time to speak up. If they want to stay in this business and make sure their energy stays as low-cost as it already is, they need to speak up right now, no matter what their political party affiliation is. Make it clear solar isn’t going away, wind isn’t going away, storage isn’t going away. These are markets America needs to be competitive with the rest of the world.
And more of the week’s biggest conflicts around renewable energy projects.
1. St. Lawrence County, New York – It’s hard out here for a 2-megawatt solar project in upstate New York.
2. McKean County, Pennsylvania – Swift Current Energy is now dealing with an insurgent opposition campaign against its Black Cherry wind project.
3. Blair County, Pennsylvania – Good news is elsewhere in Pennsylvania though as this county has given the go-ahead for a new utility-scale Ampliform solar project, the BL Hileman Hollow Solar project.
4. Allen County, Ohio – The mayor of Lima, a small city in this county, is publicly calling on Ohio senators to make sure that the pending reconciliation bill in Congress ensures Inflation Reduction Act tax credits can still apply to municipalities.
5. Vanderburgh County, Indiana – Orion Energy’s Blue Grass Creek solar project is now facing opposition too, with Orion representatives telling local press they actually expected some locals to be against the project.
6. Otsego County, Michigan – That state forest-felling solar farm that Fox News loved to hate? That idea is no more.
7. Adams County, Illinois – The Green Key solar project we’ve been following in the town of Ursa has received its special use permit from the county after vociferous local opposition.
8. Dane County, Wisconsin – We’re getting a taste of local worry about how the GOP’s efforts to change the IRA could affect municipal energy planning, thanks to the village of Waukanee.
9. Olmsted County, Minnesota – The fight over Ranger Power’s Lemon Hill solar project is evolving into a nascent bid to give localities more control over permitting renewables projects.
10. Cherry County, Nebraska – This county is seeking an investigation into whether Sandhills Energy’s BSH Kilgore wind farm is violating zoning standards after receiving requests from residents who are against the project.
11. Albany County, Wyoming – Bird conservation activists fighting wind projects in Wyoming claim the Interior Department is providing them incomplete information under the Freedom of Information Act about wind turbines and eagle deaths.
12. Santa Fe County, New Mexico – Renowned climate activist Bill McKibben is publicly going on the attack against opponents of an individual solar project, the AES Rancho Viejo solar farm near Santa Fe.
13. Apache County, Arizona – Opponents of the Repsol Lava Run wind project are now rallying around trying to stop transmission for the project.
14. Klickitat County, Washington – The Cypress Creek Renewables solar project we told you last week got fast-tracked by the state Energy Facility Site Evaluation Council? Turns out the county had a moratorium on new solar and anticipated a chance to formally file public comments before that would happen.
Will Sunrise Wind and Revolution Wind get the Trump treatment?
The sharks of opposition are circling the American offshore wind industry, as they await the federal government’s next victims.
This week, we received news that Equinor – developer of the Empire Wind project – is inching towards potentially canceling development after a visit to Washington and the White House yielded little success. In addition, Interior Secretary Doug Burgum told Fox Business that the department is now reviewing all offshore wind permits issued under the Biden administration.
“What people don’t realize, billions of tons of rock are poured into the ocean before they can begin the years of pile driving,” Burgum told Fox Business, claiming the review of offshore wind permits that Trump ordered uncovered new data about Empire Wind “that was never released to the public” showing the approval “lacked total rigor.”
Meanwhile, coastal opponents of wind energy have moved onto other projects: Orsted’s Revolution Wind project near Rhode Island and Sunrise Wind project off New York’s coastline. In petitions to the EPA, two anti-wind groups – Green Oceans and Protect Our Coast N.J. – have asked the agency to rescind key permits for air emissions and water discharges, asserting the federal government moved too fast to get them approved.
In addition, an environmental consultancy hired by Green Oceans called Planet A* Strategies sent a detailed report to Burgum examining “the background, legal requirements, and data used in Federal agency decision-making regarding offshore wind development.” The consultancy claimed it had found actual violations of environmental law and that facts in the report “include material information that may have been omitted or misrepresented by offshore wind project developers and governmental decisionmakers.” Planet A* Strategies is run by Maureen Koatz, a former policy director for the Nuclear Energy Institute and Senate staffer.
Green Oceans has also retained federal lobbyists from two different firms, a noteworthy move for an organization that previously had no obvious government affairs footprint.
It is likely no coincidence that all of these petitions and this report are all being filed right now, as we saw a similar flurry of activity surround Empire Wind before its stop work order was issued. Similar noise occurred in the days before Atlantic Shores lost a key EPA permit, sending work on the project into indefinite hiatus. For this reason, I suspect we will see more actions threatening other permits for offshore wind projects – and will be surprised if that doesn’t happen.
But at least this time there’s a countervailing force, as climate-minded environmentalists now swoop in too. Late Thursday, 10 major environmental non-profits – including NRDC, Sierra Club, Environmental Defense Fund, and the National Wildlife Federation – filed an amicus brief in the lawsuit that was filed by Democrat-led states against Trump’s blanket ban on offshore wind approvals and leases. I obtained a copy of the filing this afternoon from NRDC.
The amicus brief focuses on the argument that Trump’s order and the government’s compliance with it violates the Administrative Procedures Act. This comes after months of relative inaction from the environmental movement, other than a handful of rallies and public statements against the offshore wind ban.
The brief also declares that “when robust environmental review and permitting frameworks are applied, the responsible deployment of U.S. wind power is compatible with wildlife protection, public health, community protection and economic development,” and that the agencies “have taken an abrupt, 180-degree turn in their approach to wind permitting, without acknowledging this about-face, and without providing any justification, let alone a reasoned one.”