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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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What happens when one of energy’s oldest bottlenecks meets its newest demand driver?
Often the biggest impediment to building renewable energy projects or data center infrastructure isn’t getting government approvals, it’s overcoming local opposition. When it comes to the transmission that connects energy to the grid, however, companies and politicians of all stripes are used to being most concerned about those at the top – the politicians and regulators at every level who can’t seem to get their acts together.
What will happen when the fiery fights on each end of the wire meet the broken, unplanned spaghetti monster of grid development our country struggles with today? Nothing great.
The transmission fights of the data center boom have only just begun. Utilities will have to spend lots of money on getting energy from Point A to Point B – at least $500 billion over the next five years, to be precise. That’s according to a survey of earnings information published by think tank Power Lines on Tuesday, which found roughly half of all utility infrastructure spending will go toward the grid.
But big wires aren’t very popular. When Heatmap polled various types of energy projects last September, we found that self-identified Democrats and Republicans were mostly neutral on large-scale power lines. Independent voters, though? Transmission was their second least preferred technology, ranking below only coal power.
Making matters far more complex, grid planning is spread out across decision-makers. At the regional level, governance is split into 10 areas overseen by regional transmission organizations, known as RTOs, or independent system operators, known as ISOs. RTOs and ISOs plan transmission projects, often proposing infrastructure to keep the grid resilient and functional. These bodies are also tasked with planning the future of their own grids, or at least they are supposed to – many observers have decried RTOs and ISOs as outmoded and slow to respond. Utilities and electricity co-ops also do this planning at various scales. And each of these bodies must navigate federal regulators and permitting processes, utility commissions for each state they touch, on top of the usual raft of local authorities.
The mid-Atlantic region is overseen by PJM Interconnection, a body now under pressure from state governors in the territory to ensure the data center boom doesn’t unnecessarily drive up costs for consumers. The irony, though, is that these governors are going to be under incredible pressure to have their states act against individual transmission projects in ways that will eventually undercut affordability.
Virginia, for instance – known now as Data Center Alley – is flanked by states that are politically diverse. West Virginia is now a Republican stronghold, but was long a Democratic bastion. Maryland had a Republican governor only a few years ago. Virginia and Pennsylvania regularly change party control. These dynamics are among the many drivers behind the opposition against the Piedmont Reliability Project, which would run from a nuclear plant in Pennsylvania to northern Virginia, cutting across spans of Maryland farmland ripe for land use conflict. The timeline for this project is currently unclear due to administrative delays.
Another major fight is brewing with NextEra’s Mid-Atlantic Resiliency Link, or MARL project. Spanning four states – and therefore four utility commissions – the MARL was approved by PJM Interconnection to meet rising electricity demand across West Virginia, Virginia, Maryland and Pennsylvania. It still requires approval from each state utility commission, however. Potentially affected residents in West Virginia are hopping mad about the project, and state Democratic lawmakers are urging the utility commission to reject it.
In West Virginia, as well as Virginia and Maryland, NextEra has applied for a certificate of public convenience and necessity to build the MARL project, a permit that opponents have claimed would grant it the authority to exercise eminent domain. (NextEra has said it will do what it can to work well with landowners. The company did not respond to a request for comment.)
“The biggest problem facing transmission is that there’s so many problems facing transmission,” said Liza Reed, director of climate and energy at the Niskanen Center, a policy think tank. “You have multiple layers of approval you have to go through for a line that is going to provide broader benefits in reliability and resilience across the system.”
Hyperlocal fracases certainly do matter. Reed explained to me that “often folks who are approving the line at the state or local level are looking at the benefits they’re receiving – and that’s one of the barriers transmission can have.” That is, when one state utility commission looks at a power line project, they’re essentially forced to evaluate the costs and benefits from just a portion of it.
She pointed to the example of a Transource line proposed by PJM almost 10 years ago to send excess capacity from Pennsylvania to Maryland. It wasn’t delayed by protests over the line itself – the Pennsylvania Public Utilities Commission opposed the project because it thought the result would be net higher electricity bills for folks in the Keystone State. That’s despite whatever benefits would come from selling the electricity to Maryland and consumer benefits for their southern neighbors. The lesson: Whoever feels they’re getting the raw end of the line will likely try to stop it, and there’s little to nothing anyone else can do to stop them.
These hyperlocal fears about projects with broader regional benefits can be easy targets for conservation-focused environmental advocates. Not only could they take your land, the argument goes, they’re also branching out to states with dirtier forms of energy that could pollute your air.
“We do need more energy infrastructure to move renewable energy,” said Julie Bolthouse, director of land use for the Virginia conservation group Piedmont Environmental Council, after I asked her why she’s opposing lots of the transmission in Virginia. “This is pulling away from that investment. This is eating up all of our utility funding. All of our money is going to these massive transmission lines to give this incredible amount of power to data centers in Virginia when it could be used to invest in solar, to invest in transmission for renewables we can use. Instead it’s delivering gas and coal from West Virginia and the Ohio River Valley.”
Daniel Palken of Arnold Ventures, who previously worked on major pieces of transmission reform legislation in the U.S. Senate, said when asked if local opposition was a bigger problem than macro permitting issues: “I do not think local opposition is the main thing holding up transmission.”
But then he texted me to clarify. “What’s unique about transmission is that in order for local opposition to even matter, there has to be a functional planning process that gets transmission lines to the starting line. And right now, only about half the country has functional regional planning, and none of the country has functional interregional planning.”
It’s challenging to fathom a solution to such a fragmented, nauseating puzzle. One solution could be in Congress, where climate hawks and transmission reform champions want to empower the Federal Energy Regulatory Commission to have primacy over transmission line approvals, as it has over gas pipelines. This would at the very least contain any conflicts over transmission lines to one deciding body.
“It’s an old saw: Depending on the issue, I’ll tell you that I’m supportive of states’ rights,” Representative Sean Casten told me last December. “[I]t makes no sense that if you want to build a gas pipeline across multiple states in the U.S., you go to FERC and they are the sole permitting authority and they decide whether or not you get a permit. If you go to the same corridor and build an electric transmission that has less to worry about because there’s no chance of leaks, you have a different permitting body every time you cross a state line.”
Another solution could come from the tech sector thinking fast on its feet. Google for example is investing in “advanced” transmission projects like reconductoring, which the company says will allow it to increase the capacity of existing power lines. Microsoft is also experimenting with smaller superconductor lines they claim deliver the same amount of power than traditional wires.
But this space is evolving and in its infancy. “Getting into the business of transmission development is very complicated and takes a lot of time. That’s why we’ve seen data centers trying a lot of different tactics,” Reed said. “I think there’s a lot of interest, but turning that into specific projects and solutions is still to come. I think it’s also made harder by how highly local these decisions are.”
Plus more of the week’s biggest development fights.
1. Franklin County, Maine – The fate of the first statewide data center ban hinges on whether a governor running for a Democratic Senate nomination is willing to veto over a single town’s project.
2. Jerome County, Idaho – The county home to the now-defunct Lava Ridge wind farm just restricted solar energy, too.
3. Shelby County, Tennessee - The NAACP has joined with environmentalists to sue one of Elon Musk’s data centers in Memphis, claiming it is illegally operating more than two dozen gas turbines.
4. Richland County, Ohio - This Ohio county is going to vote in a few weeks on a ballot initiative that would overturn its solar and wind ban. I am less optimistic about it than many other energy nerds I’ve seen chattering the past week.
5. Racine County, Wisconsin – I close this week’s Hotspots with a bonus request: Please listen to this data center noise.
A chat with Scott Blalock of Australian energy company Wärtsilä.
This week’s conversation is with Scott Blalock of Australian energy company Wärtsilä. I spoke with Blalock this week amidst my reporting on transmission after getting an email asking whether I understood that data centers don’t really know how much battery storage they need. Upon hearing this, I realized I didn’t even really understand how data centers – still a novel phenomenon to me – were incorporating large-scale battery storage at all. How does that work when AI power demand can be so dynamic?
Blalock helped me realize that in some ways, it’s more of the same, and in others, it’s a whole new ballgame.
The following chat was lightly edited for clarity.
So help me understand how the battery storage side of your business is changing due to the rise in data center development.
We’re really in the early stages for energy storage. The boom is really in generation – batteries aren’t generators. They store, they shift, they smooth power, but they don’t generate the power from fuel. In this boom right now, everyone is trying to find either grid connections or on-site power generation. Those are the longest lead time items – they take a while – so we’re still in the early stages of those types of projects coming back and saying, we need to start procuring batteries. We need to start looking at the controls and how everything’s going to work together. That’s still a little bit in the future.
Are you seeing people deploy batteries responsibly, in an integrated way, or is it people unsure what they need?
There’s definitely uncertainty as to what they need. The requirements are still hard to nail down. A lot of the requirements come from the load curve of the AI workloads they’re doing, and that’s still a bit of a moving target. It’s the importance of knowing the whole system and planning that out in the modeling space.
The biggest space of all this is the load profile. Without a load profile, there’s uncertainty about what you’re going to need –
When you say load profile, what do you mean?
The AI workload. The GPUs. The volatility. In a synchronized training load, all of the GPUs are generally doing the same thing at the same time. They all reach a pause state at the same time, and you’re close to full power on the data center, and then they say, okay now we go idle. It has a little bit of a wait and then starts back up again.
It’s that square wave, very sharp changes in power – that’s the new challenge of an AI data center. That’s one of the new uses of BESS that’s being added compared to the traditional data center doing data storage. They’re more stable which use less power and are more stable.
The volatility is where some of the friction comes in, and that has to be handled by some technology.
So what you’re telling me is that data center developers do not know how much they need in terms of battery storage? Simply put, they don’t know how much power they need?
Traditionally, utility-scale batteries – the projects we’ve been doing – come from a PPA, an interconnect agreement. There’s something in place where they know exactly how many batteries they can install. They know how many megawatts they’re allowed to install. Then they come to us and they say, I need a 4-megawatt battery for two hours. Tell me how many batteries you’re going to give me.
In a data center, they don’t know that first number. They don’t know how many megawatts they need. So that’s the first question: well, how big of a battery do you need?
If you have a 1-gigawatt data center that means the load change is 60% of that – 600 megawatts is the step up-and-down. The starting point is 600 megawatts for two hours. That’s the starting point that’ll cover being able to take care of that volatility. The duration is a part of it, too. From there you get into more detailed studies.
When it comes to transmission, how much of a factor is it in how much storage a data center needs?
The first thing is whether it’s connected at all. The battery is a shock absorber for the whole system. If you are grid-connected, the BESS is still a stability asset – it’s still improving the power quality and stability at an interconnect. If you’re doing on-site generation, it becomes vital because you have only one system being controlled.
As far as when you talk about permitting and transmission, the details of that don’t really play that much into the BESS, but it’s tangentially related. The BESS is an important part of how you handle that situation. Whether you get to interconnect or not, it’s an extremely important asset in that mix.
With respect to the overall social license conversation, how does battery storage fit into the conversations around energy bills and strain on the grid?
Bias aside, I think it’s the most important piece.
If you look at the macro scale, it’s like transitioning to renewables where they’re intermittent; batteries turn intermittent generation from renewables into firm, dispatchable power. It’s still not going to be available all the time – you’re not going to turn a solar plant into a 24-hour baseload plant – but a battery allows you to shift the energy. It greatly alleviates the problem.
The other aspect is it’s a stability asset. The short version of that is you have big thermal plants – rotating metal masses that have momentum to them that stabilize everything on the grid. As you take those offline, the coal plants and the gas plants, the grid itself loses that inertia so it is more susceptible to spikes and failures because of small events. Batteries are able to synthesize that inertia.