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Q&A

How the GOP Tax Bill Would Supercharge Renewable Energy NIMBYs

A conversation with Jillian Blanchard of Lawyers for Good Government about the heightened cost of permitting delays

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Jillian Blanchard.
Heatmap Illustration

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.

Yellow

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Q&A

Why a Climate Law Expert Sees ‘Small Glimmers of Hope’

Talking about the data center backlash, the midterm elections, and the future of renewables with Columbia Law School’s Romany Webb.

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Romany Webb.
Heatmap Illustration/Getty Images

This week’s conversation is a quick catch-up with our friends at Columbia Law School’s Sabin Center for Climate Change Law. I hopped on the phone with the center’s deputy director Romany Webb to chat about recent updates they published to anti-renewables opposition analysis. I wanted to dig into their research beyond the toplines — what should people care about in the coming election? How have data centers come up in their research? Or the repeal of the Inflation Reduction Act?

The following conversation was lightly edited for clarity.

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Hotspots

All the Data Center News That’s Fit to Print

A developer sues an Arkansas paper, plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. Pulaski County, Arkansas – A major utility sued the biggest newspaper in Arkansas over reporting on a data center energy deal. It’s a crucial case to follow.

  • The lawsuit Entergy filed last week against the Arkansas Democrat-Gazette centers on whether the newspaper was legally able to publish about an Entergy deal with Google around payments for a large solar farm to power a data center. It claims the information reported was a trade secret accidentally released by the state public services commission.
  • In a statement to a local ABC station, the utility claimed Google’s “electricity contract may be confidential to newspapers,” and that the publication also erroneously reported on the solar farm financing. Entergy is seeking a temporary restraining order blocking the publication from reporting any more information in its possession that would qualify as theirs or Google’s trade secrets, and claims they believe more information is in the publication’s possession that may be reported in the future, according to federal court filings.
  • So far, the utility has been unable to win the stoppage and U.S. District Judge Lee Rudofsky rejected their request on Wednesday. The case is proceeding and I will be checking in regularly for you on this one.
  • Why is this case so important? This is easily the most aggressive communications response to public reporting on a previously-unknown deal related to a data center. At a time when non-disclosure agreements are a profound liability for the sector, I am surprised to see a utility go as far as a federal court challenge.

2. Lackawanna County, Pennsylvania – Speaking of hardcore legal strategies, have you ever heard of a data center developer asking every local official to recuse themselves?

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Spotlight

The Top 5 Midterm Races of the Data Center Backlash

What we’ll be watching for on election night.

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Candidates.
Heatmap Illustration/Getty Images

It’s almost fall 2026 and you know what means: It’s time to figure out the must-watch midterm races amidst the data center backlash.

I’ve spent the past week pulling together a list of the top five congressional races worth watching as bellwethers for the impacts of the data center backlash in the American electorate. This list has three U.S. House races where Republicans are defending seats, one where a House Democrat is defending their seat, and the Senate race many of you are probably most thinking about anyway. Think of it as a tipsheet.

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