The Fight

Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Q&A

Biofuels Group Says Trump Has Industry In Standstill

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

Geoff Cooper
Heatmap Illustration

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.

This article is exclusively
for Heatmap Plus subscribers.

Go deeper inside the politics, projects, and personalities
shaping the energy transition.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Spotlight

Secrecy Is Backfiring on Data Center Developers

The cloak-and-dagger approach is turning the business into a bogeyman.

A redacted data center.
Heatmap Illustration/Getty Images

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.

Keep reading...Show less
Yellow
Hotspots

Missouri Could Be First State to Ban Solar Construction

Plus more of the week’s biggest renewable energy fights.

The United States.
Heatmap Illustration/Getty Images

Cole County, Missouri – The Show Me State may be on the precipice of enacting the first state-wide solar moratorium.

  • GOP legislation backed by Missouri Governor Mike Kehoe would institute a temporary ban on building any utility-scale solar projects in the state until at least the end of 2027, including those currently under construction. It threatens to derail development in a state ranked 12th in the nation for solar capacity growth.
  • The bill is quite broad, appearing to affect all solar projects – as in, going beyond the commercial and utility-scale facility bans we’ve previously covered at the local level. Any project that is under construction on the date of enactment would have to stop until the moratorium is lifted.
  • Under the legislation, the state would then issue rulemakings for specific environmental requirements on “construction, placement, and operation” of solar projects. If the environmental rules aren’t issued by the end of 2027, the ban will be extended indefinitely until such rules are in place.
  • Why might Missouri be the first state to ban solar? Heatmap Pro data indicates a proclivity towards the sort of culture war energy politics that define regions of the country like Missouri that flipped from blue to ruby red in the Trump era. Very few solar projects are being actively opposed in the state but more than 12 counties have some form of restrictive ordinance or ban on renewables or battery storage.

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.

Keep reading...Show less
Yellow
Q&A

Why Environmental Activists Are Shifting Focus to Data Centers

A conversation with Save Our Susquehanna’s Sandy Field.

Sandy Field.
Heatmap Illustration

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.

Keep reading...Show less
Yellow