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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

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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Spotlight

The Loud Fight Over Inaudible Data Center Noise

Why local governments are getting an earful about “infrasound”

Data center noise.
Heatmap Illustration/Getty Images

As the data center boom pressures counties, cities, and towns into fights over noise, the trickiest tone local officials are starting to hear complaints about is one they can’t even hear – a low-frequency rumble known as infrasound.

Infrasound is a phenomenon best described as sounds so low, they’re inaudible. These are the sorts of vibrations and pressure at the heart of earthquakes and volcanic activity. Infrasound can be anything from the waves shot out from a sonic boom or an explosion to very minute changes in air pressure around HVAC systems or refrigerators.

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Hotspots

An Anti-Battery Avalanche Outside Seattle

And more on the week’s top fights around project development.

The United States.
Heatmap Illustration/Getty Images

1. King County, Washington – The Moss Landing battery backlash is alive and well more than a year after the fiery disaster, fomenting an opposition stampede that threatens to delay a massive energy storage project two dozen miles east of Seattle.

  • Moss Landing looms large in Snoqualmie, a city in the Cascade Mountains where Jupiter Power is trying to build Cascade Ridge Resiliency Energy Storage, a 130-megawatt facility conveniently located on unincorporated county land right by a substation and transmission infrastructure.
  • To say residents nearby are upset would be an understatement. A giant number of protestors – reportedly 650 people, which is large for this community of about 14,000 – showed up to rally against the project this weekend, just as Jupiter Power submitted its application for the project to county regulators.
  • The opposition is led by Snoqualmie Valley for Responsible Energy, a grassroots organization that primarily has focused on the risk of thermal runaway from battery storage events and rhetoric about the Moss Landing fire. “The battery chemistry proposed for Cascadia Ridge has not been verified in any public filing. Recent incidents illustrate what is at stake,” state SVRE strategy materials posted to their website.
  • Jupiter Power has tried to combat this campaign with its own organizing coalition – dubbed “Keep the Lights On!” – that includes local union labor and some environmentalists, including volunteers for Sierra Club. This campaign has emphasized how modern engineering around battery storage is nothing like the set-up was at Moss Landing.
  • However, the concerned voices are winning out over those who want the storage project. On Wednesday night, this outcry led the Snoqualmie city council at a special meeting to vote to request via letter for the storage project to be relocated and communicate that dissent to both the local utility, Puget Sound Energy, and King County.
  • “We encourage consideration of alternate locations within the Puget Sound Energy transmission and distribution system to better address the concerns that have been raised,” read a draft version of the letter presented by councilors at the meeting.
  • Jupiter Power told me it “welcome[s] any feedback from the community” and King County said in a statement, “We understand the concerns.” PSE told me they had not “received official notification about the formal action by the City Council and we can't comment on something we have not received.”
  • This degree of on-the-ground frustration will be challenging for any higher-level decision maker in Washington State to ignore. I’d argue the entire storage sector should be watching closely.

2. Prince Williams County, Virginia – It was a big week for data center troubles. Let’s start with Data Center Alley, which started to show cracks this week as data center developer Compass announced it was pulling out of the controversial Digital Gateway mega-project.

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Q&A

Is the Left Making a ‘Massive Strategic Blunder’ on Data Centers?

A conversation with Holly Jean Buck, author of a buzzy story about Bernie Sanders’ proposal for a national data center moratorium.

Holly Jean Buck.
Heatmap Illustration

This week’s conversation is with Holly Jean Buck, an associate professor at the University of Buffalo and former official in the Energy Department’s Office of Fossil Energy and Carbon Management. Buck got into the thicket of the data center siting debate this past week after authoring a polemic epistemology of sorts in Jacobin arguing against a national data center ban. In the piece, she called a moratorium on AI data centers “a massive strategic blunder for the left, and we should think through the global justice implications and follow-on effects.” It argued that environmental and climate activists would be better suited not courting a left-right coalition that doesn’t seem to have shared goals in the long term.

Her article was praised by more Abundance-leaning thinkers like Matthew Yglesias and pilloried by some of the more influential people in the anti-data center organizing space, such as Ben Inskeep of Citizens Action Coalition of Indiana. So I wanted to chat with her about the discourse around her piece. She humbly obliged.

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