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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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Things in Sulphur Springs are getting weird.
Texas Attorney General Ken Paxton is trying to pressure a company into breaking a legal agreement for land conservation so a giant data center can be built on the property.
The Lone Star town of Sulphur Springs really wants to welcome data center developer MSB Global, striking a deal this year to bring several data centers with on-site power to the community. The influx of money to the community would be massive: the town would get at least $100 million in annual tax revenue, nearly three times its annual budget. Except there’s a big problem: The project site is on land gifted by a former coal mining company to Sulphur Springs expressly on the condition that it not be used for future energy generation. Part of the reason for this was that the lands were contaminated as a former mine site, and it was expected this property would turn into something like a housing development or public works project.
The mining company, Luminant, went bankrupt, resurfaced as a diversified energy company, and was acquired by power giant Vistra, which is refusing to budge on the terms of the land agreement. After sitting on Luminant’s land for years expecting it to be used for its intended purposes, the data center project’s sudden arrival appears to have really bothered Vistra, and with construction already underway, the company has gone as far as to send the town and the company a cease and desist.
This led Sulphur Springs to sue Vistra. According to a bevy of legal documents posted online by Jamie Mitchell, an activist fighting the data center, Sulphur Springs alleges that the terms of the agreement are void “for public policy,” claiming that land restrictions interfering with a municipality’s ability to provide “essential services” are invalid under prior court precedent in Texas. The lawsuit also claims that by holding the land for its own use, Vistra is violating state antitrust law by creating an “energy monopoly.” The energy company filed its own counterclaims, explicitly saying in a filing that Sulphur Springs was part of crafting this agreement and that “a deal is a deal.”
That’s where things get weird, because now Texas is investigating Luminant over the “energy monopoly” claim raised by the town. It’s hard not to see this as a pressure tactic to get the data center constructed.
In an amicus brief filed to the state court and posted online, Paxton’s office backs up the town’s claim that the land agreement against energy development violates the state’s antitrust law, the Texas Free Enterprise and Antitrust Act, contesting that the “at-issue restriction appears to be perpetual” and therefore illegally anti-competitive. The brief also urges the court not to dismiss the case before the state completes its investigation, which will undoubtedly lead to the release of numerous internal corporate documents.
“Sulphur Springs has alleged a pattern of restricting land with the potential for energy generation, with the effect of harming competition for energy generation generally, which would necessarily have the impact of increasing costs for both Sulphur Springs and Texas consumers generally,” the filing states. “Evaluating the competitive effects of Luminant’s deed restrictions as well as the harm to Texans generally is a fact-intensive matter that will require extensive discovery.”
The Texas attorney general’s office did not respond to multiple requests for comment on the matter. It’s worth noting that Paxton has officially entered the Republican Senate primary, challenging sitting U.S. Senator John Cornyn. Contrary to his position in this case, Paxton has positioned himself as a Big Tech antagonist and fought the state public utilities commission in pursuit of releasing data on the crypto mining industry’s energy use.
A solar developer gets into a forest fight in California, and more of the week’s top conflicts around renewables.
1. Sacramento County, California – A solar project has become a national symbol of the conflicts over large-scale renewables development in forested areas.
2. Sedgwick County, Kansas – I am eyeing this county to see whether a fight over a solar farm turns into a full-blown ban on future projects.
3. Montezuma County, Colorado – One southwest Colorado county is loosening restrictions on solar farms.
4. Putnam County, Indiana – An uproar over solar projects is now leading this county to say no to everything, indefinitely.
5. Kalamazoo County, Michigan – I’m eyeing yet another potential legal challenge against Michigan’s permitting reform efforts.
A conversation with Renee Grabe of Nature Forward
This week’s conversation is with Renee Grabe, a conservation advocate for the environmental group Nature Forward who is focused intently on data center development in Northern Virginia. I reached out to her for a fresh perspective on where data centers and renewable energy development fits in the Commonwealth amidst heightened frustration over land use and agricultural impacts, especially after this past election cycle. I thought her views on policy-making here were refreshingly nuanced.
This transcript was lightly edited for clarity.
Tell me more about how you started focusing on data centers.
So, in Fairfax County, in 2020 or 2021, people were pursuing the construction of an indoor ski facility on a landfill. From a climate perspective, to build something that would need to be cooled 24/7 for indoor skiing seemed like a very bad proposal in terms of energy usage. And for what kind of gain?
Then our friends at the Sierra Club were saying, indoor ski slopes? Bad, yes. But data centers? Way, way worse. Those aren’t cooling to support snow but are cooling much larger areas on a much larger scale, dwarfing the area of that one ski slope. This was around the time the Prince William Digital Gateway was showing up – they were saying all these acres of agricultural lands and single-family housing zones were about to be rezoned. This was a big deal, and Sierra Club led the way in opening our eyes to this. The rezoning ultimately passed. The data centers were sued and the people who filed the lawsuit won, but pre-planning for the centers is still allowed to take place.
The way we think about the impacts of data centers, besides the loss of natural lands and the amount of energy that’s going to be needed to power these things, has been diesel generators. These are the things that are backup generation and the camel’s nose under the tent is trying to get them to be primary power.
Now I want to ask you a provocative question: is there any middle ground between letting these projects be built unfettered and outright bans on their development?
We have no regulation today. From our standpoint, these things are coming, they’re here. We know a lot more now than we did in 2022. As we make decisions about how and where to build these facilities we all need – I mean we’re using one right now. I use a data center all day at work. Teams conferencing. ChatGPT to answer a question. We need these. So if we’re going to build them, let’s not give a pass to some of the world’s largest and richest companies. Let’s ask them to put the guardrails on to protect our residences and our infrastructure to make sure they’re as sustainable as possible.
Okay, so what are the guardrails then?
The costs of what was going to go into a data center need to be more transparent. We need to bring accountability to the forefront right away as they’re being built.
In Ohio, they passed a law requiring data center companies to pay for a high percentage of the power they’re using. That cut a significant number of the projects in Ohio. This industry is so speculative and a land grab and a rush to be first to get the most.
You have this dichotomy of land values for residences being inundated, while land values for developers are skyrocketing. We have an affordability crisis going on and we are all on the hook for paying for the infrastructure to power these things.
So when you think about what regulation might make data center development more reasonable, it’s asking for the costs happening to be borne by the industry making them. Let’s get rid of some of the incentives for power users. We don’t need to be encouraging the loss of state revenue, either – we’re leaving money on the table to bring these facilities here.
Lastly, our readers love to get hyperlocal. I know you’re intently focused on Fairfax County right now which has been a big part of the data center boom in Virginia – what’s happening there?
There are a couple things that have happened over the course of this past year. Fairfax County passed a data center zoning ordinance amendment – minimum requirements a data center will have to adhere to. The big thing with that one is, you have to have a special exception if you build within a mile of a Metro station. When you think about good land use and building a data center within a walkable distance of a Metro, that’s eye-openingly poor land use policy and a missed opportunity for transit-oriented development. It doesn’t mean they can’t be built near one but you have to get a special exception.
Some things can’t be regulated at the local level. Like generators. That’s in the hands of the state.
Last night, we had a public hearing at the Fairfax County board level for our policy plan – our comprehensive plan providing guidance for developers who want to get a special exception or rezoning. It is not law. It is not required. It is a visionary document that helps us get to better. They’ve added a section for data centers in that. In May, staff put forward something pretty good, making sure data centers met a minimum level of efficiency. But our chairman of the county board said it went above and beyond our zoning ordinance and said he didn’t think it was appropriate, so staff rewrote that section and stripped out a lot of the specificity and higher standards that were in that document.
At the hearing, they deferred a decision, listening to the public but not having a discussion at the board level. They’ve left the record open through December 9th.