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A conversation with Geoff Cooper, head of the Renewable Fuels Association

Today’s conversation is with Geoff Cooper, head of the Renewable Fuels Association, the most powerful biofuels trade organization in D.C. And he’s not happy.
In Cooper’s view, the Biden administration left the IRA’s tax credit supporting lower-carbon jet fuel unfinished despite releasing guidance days before Trump entered office (here’s an explainer on that problem). Not to mention the chaos of Trump’s early days has, as Cooper put it, thrown the brakes on the American biofuels sector’s foray into aviation. Cooper and I have a history going back years, and almost a month into Trump 2.0, I thought it was time we had a chat about how solar and wind aren’t the only sectors left out in the cold right now.
The following conversation was lightly edited and abridged for clarity.
We’ve been telling our readers what’s happening in the renewable energy space under Trump. But what’s happening in the renewable fuels space?
I think what we’re seeing right now is lots of businesses hitting the pause button and waiting for more certainty, waiting for more clarity on where everything is headed. There is, of course, always uncertainty and unpredictability at the beginning of any new administration. But this one in particular there has been more than usual because we were sort of in the middle of getting rules finalized on some of those key tax credits from the Inflation Reduction Act. We had good clarity, and I’d say understanding of where some of those programs were going, like 45Q, but on others like 45Z, literally, it was the last week of the Biden administration that we began to see the necessary pieces of that program we’d been waiting on, and what the administration put out was incomplete and unfinished, so now it falls to the Trump administration to decide whether and how to move forward with that. So all of that uncertainty and confusion and the timing of all of that has resulted in many companies in the renewable fuels space just calling a time out on any investment plans and strategies that they have been considering to lower carbon intensity. I think there’s a real hesitancy to dive head first into some of those investments right now when it just isn’t clear where the bottom is.
What do you mean by a pause on investment? Can you give some examples?
Under 45Z and under the initial modeling the Biden administration put out in early January, I’d say probably three-quarters of the ethanol industry is just barely on the outside of generating 45Z credit, so the carbon intensity of their ethanol is just above that threshold that would be required to generate that credit on the low end of that scale.
There are a number of technologies that producers could adopt to get them on the other side of that threshold into the position where they can begin claiming some value from 45Z — combined heat and power, installing wind or solar behind the meter at these facilities so they can enjoy the benefit of renewable electricity, using biogas in lieu of natural gas. These are all things most producers were considering, and had in some cases had deals ready to go and projects ready to go. But they’re on hold now because again, nobody’s quite sure what the future looks like for 45Z.
Are any companies saying this out loud, or is this mostly private board room chatter?
This is mostly internal conversations during board meetings and other meetings we’ve had as an association. But there have been public statements.
Is the uncertainty surrounding government funding also a factor here?
It has been. If you look at USDA — for example, the [Rural Energy for America Program] REAP program — funding was paused for that program. And it isn’t just for on-farm renewable projects. There’s some ethanol plants that had successfully applied and received commitments for REAP funding for projects they were doing and that’s been put on hold. More broadly, things have slowed down in terms of making investments and commitments to efficiency and lower carbon intensity in the industry as a result of just the broader freeze and slowdown on all of these programs at the federal level.
And again, you expect some of that is going to occur any time there’s a new administration and you go through a transition like this. But this one has been, I would say, particularly acute so far.
Do you believe that given his history supporting biofuel infrastructure in North Dakota as governor, Interior Secretary Doug Burgum will be more deferential to your members when it comes to permitting?
I should say the industry is confident that everything that’s paused right now — or, not everything, but a lot of the important programs that have been frozen or paused right now — will eventually be unstuck and the door will open back up. Certainly we see carbon capture and sequestration projects in that way, permitting for those projects. Obviously there’s a couple of carbon pipeline projects that we do expect will move forward, and the 45Q tax credit seems to be on firmer ground than 45Z at this moment. So we do expect that those things will move forward.
It’s just a matter of how long things are delayed and how long things are frozen as the new administration is reviewing things and formulating their own strategy and plans for how they want to move forward.
Do you have any idea how that’ll shake out?
I don’t think there is any indication of how it’ll shake out at this point.
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The cloak-and-dagger approach is turning the business into a bogeyman.
It’s time to call it like it is: Many data center developers seem to be moving too fast to build trust in the communities where they’re siting projects.
One of the chief complaints raised by data center opponents across the country is that companies aren’t transparent about their plans, which often becomes the original sin that makes winning debates over energy or water use near-impossible. In too many cases, towns and cities neighboring a proposed data center won’t know who will wind up using the project, either because a tech giant is behind it and keeping plans secret or a real estate firm refuses to disclose to them which company it’ll be sold to.
Making matters worse, developers large and small are requiring city and county officials to be tight-lipped through non-disclosure agreements. It’s safe to say these secrecy contracts betray a basic sense of public transparency Americans expect from their elected representatives and they become a core problem that lets activists critical of the data center boom fill in gaps for the public. I mean, why trust facts and figures about energy and water if the corporations won’t be up front about their plans?
“When a developer comes in and there’s going to be a project that has a huge impact on a community and the environment – a place they call home – and you’re not getting any kind of answers, you can tell they’re not being transparent with you,” Ginny Marcille-Kerslake, an organizer for Food and Water Watch in Pennsylvania, told me in an interview this week. “There’s an automatic lack of trust there. And then that extends to their own government.”
Let’s break down an example Marcille-Kerslake pointed me to, where Talen Energy is seeking to rezone hundreds of acres of agricultural land in Montour County, Pennsylvania, for industrial facilities. Montour County is already a high risk area for any kind of energy or data center development, ranking in the 86th percentile nationally for withdrawn renewable energy projects (more than 10 solar facilities have been canceled here for various reasons). So it didn’t help when individuals living in the area began questioning if this was for Amazon Web Services, similar to other nearby Talen-powered data center projects in the area?
Officials wouldn’t – or couldn’t – say if the project was for Amazon, in part because one of the county commissioners signed a non-disclosure agreement binding them to silence. Subsequently, a Facebook video from an activist fighting the rezoning went viral, using emails he claimed were obtained through public records requests to declare Amazon “is likely behind the scenes” of the zoning request.
Amazon did not respond to my requests for comment. But this is a very familiar pattern to us now. Heatmap Pro data shows that a lack of transparency consistently ranks in the top five concerns people raise when they oppose data center projects, regardless of whether they are approved or canceled. Heatmap researcher Charlie Clynes explained to me that the issue routinely crops up in the myriad projects he’s tracked, down to the first data center ever logged into the platform – a $100 million proposal by a startup in Hood County, Oregon, that was pulled after a community uproar.
“At a high level, I have seen a lack of transparency become more of an issue. It makes people angry in a very unique way that other issues don’t. Not only will they think a project is going to be bad for a community, but you’re not even telling them, the key stakeholder, what is going on,” Clynes said. “It’s not a matter of, are data centers good or bad necessarily, but whether people feel like they’re being heard and considered. And transparency issues make that much more difficult.”
My interview with Marcille-Kerslake exemplified this situation. Her organization is opposed to the current rapid pace of data center build-out and is supporting opposition in various localities. When we spoke, her arguments felt archetypal and representative of how easily those who fight projects can turn secrecy into a cudgel. After addressing the trust issues with me, she immediately pivoted to saying that those exist because “at the root of it, this lack of transparency to the community” comes from “the fact that what they have planned, people don’t want.”
“The answer isn’t for these developers to come in and be fully transparent in what they want to do, which is what you’d see with other kinds of developments in your community. That doesn’t help them because what they’re building is not wanted.”
I’m not entirely convinced by her point, that the only reason data center developers are staying quiet is because of a likelihood of community opposition. In fairness, the tech sector has long operated with a “move fast, break things” approach, and Silicon Valley companies long worked in privacy in order to closely guard trade secrets in a competitive marketplace. I also know from my previous reporting that before AI, data center developers were simply focused on building projects with easy access to cheap energy.
However, in fairness to opponents, I’m also not convinced the industry is adequately addressing its trust deficit with the public. Last week, I asked Data Center Coalition vice president of state policy Dan Diorio if there was a set of “best practices” that his large data center trade organization is pointing to for community relations and transparency. His answer? People are certainly trying their best as they move quickly to build out infrastructure for AI, but no, there is no standard for such a thing.
“Each developer is different. Each company is different. There’s different sizes, different structures,” he said. “There’s common themes of open and public meetings, sharing information about water use in particular, helping put it in the proper context as well.”
He added: “I wouldn’t categorize that as industry best practice, [but] I think you’re seeing common themes emerge in developments around the country.”
Plus more of the week’s biggest renewable energy fights.
Cole County, Missouri – The Show Me State may be on the precipice of enacting the first state-wide solar moratorium.
Clark County, Ohio – This county has now voted to oppose Invenergy’s Sloopy Solar facility, passing a resolution of disapproval that usually has at least some influence over state regulator decision-making.
Millard County, Utah – Here we have a case of folks upset about solar projects specifically tied to large data centers.
Orange County, California – Compass Energy’s large battery project in San Juan Capistrano has finally died after a yearslong bout with local opposition.
Hillsdale County, Michigan – Here’s a new one: Two county commissioners here are stepping back from any decision on a solar project because they have signed agreements with the developer.
A conversation with Save Our Susquehanna’s Sandy Field.
This week’s conversation is with Sandy Field, leader of the rural Pennsylvania conservation organization Save Our Susquehanna. Field is a climate activist and anti-fossil fuel advocate who has been honored by former vice president Al Gore. Until recently, her primary focus was opposing fracking and plastics manufacturing in her community, which abuts the Susquehanna River. Her focus has shifted lately, however, to the boom in data center development.
I reached out to Field because I’ve been quite interested in better understanding how data centers may be seen by climate-conscious conservation advocates. Our conversation led me to a crucial conclusion: Areas with historic energy development are rife with opposition to new tech infrastructure. It will require legwork for data centers – or renewable energy projects, for that matter – to ever win support in places still reeling from legacies of petroleum pollution.
The following conversation has been lightly edited for clarity.
Given your background, tell me about how you wound up focusing on data centers?
We won a fight against a gas plant in fall of 2023. We started saying, Instead of focusing on what we don’t want, we’re going to start focusing on what we do want. We were focusing on supporting recreational projects in our area, because this is an area where people come to hike and camp and fish. It’s a great place to ride your bike.
Then, all of the sudden, people were saying, What about these data centers?
At first, it seemed benign. It’s like a warehouse, who cares? But we started to learn about the water use concerns, the energy use concerns. We learned about the Amazon one that’s connected to Three Mile Island, which is responsible for turning it back on. We learned about one in Homer, Pennsylvania, where they’re taking a former coal plant and converting it into the largest gas plant in the country in order to power a data center. The people in that area are going to get the pollution from the enormous power plant but none of the power. It started to be clear to us that, again, behind these projects is a push to build out more fracking and gas in Pennsylvania.
From a climate change point of view, this is exactly the wrong perspective. We’re running in the wrong direction. Between water usage, and this energy usage, people are becoming alarmed that the burden will be on us and data centers will be just another boondoggle.
The last thing I’ll say is that there is nothing right now in American politics that is reaching across the aisle. Our communities are coming together. Everybody – Democrats, Republicans – to fight these things.
This is also the only thing I’ve ever worked on that people hate more than plastics.
It sounds like how you learned about these projects was, it began as an anodyne issue but you began to hear about impacts on water and energy use. When I talk to people in the development space, some will call anybody who opposes development NIMBYs. But I’m feeling like this is an oversimplification of the problem here. If you had to identify a principle reason so many people are opposing data centers, what would be the big overarching motive?
I think it seems rushed. People are concerned because it's like a gold rush.
A gas-fired power plant takes five years to build. They’re talking about data centers right now. Where is that power coming from? The whole thing feels like a bubble, and we’re concerned that people are going to invest into communities, and communities will be accepting them only to be left with stranded assets.
When I hear you bring up the principle reason being speed, I hear you. Power plants take years. Mines take years. So do renewable energy projects. Help me get a better understanding though, how much of this is purely the speed –
They’re taking people by surprise.
Take into account where we are. We live by the Susquehanna River, the longest non-navigable river in the world. It doesn’t have a lot of industry on it because it’s too shallow, but we drink from the river and we’ve just gotten it clean. The river was so low this past year that historic structures were beginning to be visible that I’ve never seen, the entire time I have lived here. That was because of a drought.
Now, add to that a couple of data centers pulling millions of gallons of water a day and only putting a portion back in, with who knows what in there. People here are saying that back in the day this river was filled with coal dust, and then we had fracking, so its… enough is enough. Let’s put something into rural communities that will actually benefit us.
The small townships [deciding] don’t know enough about data centers to plan for them. So we’re trying to make sure they’re prepared for managing them. We go to these townships being approached and encourage them to have a protective ordinance that allows them to define parameters for these things. Setbacks, water use rules, things like that.
To your point about NIMBYs – there are a few around here who really are. But there are others who really do just have concerns about how this is a bad idea and we’re rushing in a direction we don’t want to go for our state. They felt this way about fracking, about advanced plastics recycling too, for example. It wasn’t that people didn’t want the projects in their backyards – it’s that they didn’t want them anywhere. Labeling us as NIMBYs or whiners or gripers is unfair.
On that note, I can’t help but notice that these efforts to get protective ordinances on data centers are happening as opponents of renewable energy are doing the same thing. Are you at all concerned that this increased scrutiny towards land use will lead to greater restrictions on renewables alongside data centers?
You’re right that a lot of this is about land use and there are similar arguments about renewable energy. Some of these arguments are being fed by the fossil fuel industry and its allies, and a lot of it is baseless. They’re feeding in concerns about glare and noise and whatever else that don’t even really exist about solar panels.
But it is, yes, often the same people talking about protecting their land. It does have similar elements, especially because of the agricultural land use being proposed in many cases.
We need to meet the concerns about renewable energy head-on. If you talk to people and show them a picture of solar panels with sheep grazing underneath and the land can be conserved for many years, this starts to be a different argument than building a data center for Amazon or someone else that people don’t even like, using the water and all that.