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A conversation with Mike Barnwell of the Michigan Regional Council of Carpenters and Millwrights
Today’s conversation is with Mike Barnwell at the Michigan Regional Council of Carpenters and Millwrights, a union organization more than 14,000 members strong. I reached out to Barnwell because I’d been trying to better understand the role labor unions could play in influencing renewables policy decisions, from the labor permitting office to the fate of the Inflation Reduction Act. So I called him up on my way home from the American Clean Power Association’s permitting conference in Seattle, where I gave a talk, and we chatted about how much I love Coney Island chili in Detroit. Oh, and renewable energy, of course.
The following conversation has been lightly edited for clarity.
I guess to start, we covered Michigan’s new permitting and siting law. What role did your union play in that process?
Locally, with the siting laws, we were a big part of that from the local level all the way to the state. From speaking at the Capitol down to city council and building authority meetings about projects happening in areas and cleaning out some of the red tape to make these possible.
It’s created jobs for our members current and future.
So you see labor as being helpful in getting permitting done faster?
Being labor maybe I’m biased but I think it is. I say labor collectively, we’ve got a pretty good coalition here in Michigan.
Do you think unions like yours will be similarly influential in the future of the Inflation Reduction Act back in Washington, D.C.?
Let me put it this way: the requirements of registered apprenticeships being on site come back to creating jobs for our members. Otherwise it’s just hiring anybody off the street – unskilled and unsafe workplaces. We train our folks through our apprenticeships and that legislation is ensuring safety on the jobs for one, let alone letting them build careers and pensions.
We’re a carpenter-centric union but this all falls under the work of what we do. We’ve been implementing our four-year apprenticeship program — every kind of renewable energy training you can think of, we’ve implemented it into our programs. It’s hands on. We have mockups at our training centers where [projects] get built and torn down and built and torn down. When you talk about a utility-scale solar project, it’s an average of 160-170 individuals working on that project. Without proper skills training they can’t work in coordination with each other.
How are you feeling about the future of the tax credits?
Uneasy.
The current leadership, they obviously have different views than the past leadership did. Lookit – when you talk about the IRA that has done nothing but create jobs for the blue collar working man in not just our state but around the nation. Here in Michigan, it almost went from zero to sixty in 10 seconds. It was miraculous what they did for us. We went from scratching and clawing in trying to procure these projects to now the IRA requiring skill training and prevailing wage and benefits and health care, which what as a union we’re all about.
Just in the last year, we’ve brought on over 300 new members just for solar alone. That’s all because of the federal tax credit and the language in the IRA.
Last question – what role do you see labor playing in the process of getting individual projects permitted and built?
Our role in that, I’ve been to plenty of these community meetings myself but it’s the actual working guy, the guy who is using his tools every week, who goes and speaks up to their county or town leadership about the benefits of these projects.
That big BlueOval battery plant in Marshall, Michigan – I don’t know if that would’ve been permitted without the work of our members being at those meetings, letting their voices be heard. There was obviously an opposition voice as well, but ours were a bit louder in the room. People want to hear the voices that say yes we want it and here’s why. This is how I support my family from the work on these projects. Otherwise it would’ve never gotten off the ground.
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And more of the week’s top conflicts around renewable energy
1. Worcester County, Massachusetts – The town of Oakham is piping mad about battery energy storage.
2. Worcester County, Maryland – A different drama is going down in a different Worcester County on Maryland’s eastern shore, where fishing communities are rejecting financial compensation from U.S. Wind tied to MarWin, its offshore project.
3. Lackawanna County, Pennsylvania – A Pivot Energy solar project is moving ahead with getting its conditional use permit in the small town of Ransom, but is dealing with considerable consternation from residents next door.
4. Cumberland County, North Carolina – It’s hard out here for a 5-megawatt solar project, apparently.
5. Barren County, Kentucky – Remember the Geenex solar project getting in the fight with a National Park? The county now formally has a restrictive ordinance on solar… that will allow projects to move through permitting.
6. Stark County, Ohio – Stark Solar is no more, thanks to the Ohio Public Siting Board.
7. Cheboygan County, Michigan – A large EDP Renewables solar project called the Northern Waters Solar Park is entering the community relations phase and – stop me if you’ve heard this before – it’s getting grumbles from locals.
8. Adams County, Illinois – A Summit Ridge Energy solar project located near the proposal in the town of Ursa we’ve been covering is moving forward without needing to pay the city taxes, due to the project being just outside city limits.
9. Cottonwood County, Minnesota – National Grid Renewables has paused work on the Plum Creek wind farm despite having received key permits to build, a sign that economic headwinds may be more powerful than your average NIMBY these days.
10. Oklahoma County, Oklahoma – Turns out you can’t kill wind in Oklahoma that easily.
11. Washoe County, Nevada – Trump’s Bureau of Land Management has opened another solar project in the desert up for public comment.
12. Shasta County, California – The California Energy Commission this week held a public hearing on the ConnectGen Fountain Wind project, which we previously told you already has gotten a negative reaction from the panel’s staff.
A conversation with Heather Cooper, a tax attorney at McDermott Will & Emery, about the construction rules in the tax bill.
This week I had the privilege of speaking with Heather Cooper, a tax attorney at McDermott Will & Emery who is consulting with renewables developers on how to handle the likelihood of an Inflation Reduction Act repeal in Congress. As you are probably well aware, the legislation that passed the House earlier this week would all but demolish the IRA’s electricity investment and production tax credits that have supercharged solar and wind development in the U.S., including a sharp cut-off for qualifying that requires beginning construction by a date shortly after the bill’s enactment.
I wanted to talk to Heather about whether there was any way for developers to creatively move forward and qualify for the construction aspect of the credits’ design. Here’s an abridged version of our conversation, which happened shortly after the legislation passed the House Thursday morning.
How would this repeal affect projects that are already in the pipeline?
Projects in the pipeline are likely going to be safe harbored or grandfathered from these repeals, assuming they’ve gone far enough into their development to meet certain tax rules.
For projects that are less far along in the pipeline and haven’t had any outlays or expenditures yet, those developers right now are scrambling and I’ve gotten probably about 100 emails from my clients today asking me questions about what they can do to establish construction has begun on their project.
If they don’t satisfy those construction rules under the tax bill, they will be completely ineligible for the energy generating credits — the investment tax credit and production tax credit. A pretty significant impact.
What are the questions your clients are asking you?
I’m being asked how these credits are being repealed, if there’s any grandfathering, and how it’s impacting transferability. Also, they’re asking if these rules are tied to construction or placing in service or tax years generally. But also, it seems like people are asking what folks need to do to technically begin construction.
How much will this repeal affect fights between developers and opposition? I spoke to an attorney who told me this repeal could empower NIMBYs, for example.
I don’t know if it empowers them as much as NIMBYs will have less to worry about. If these projects are no longer economical, if these are no longer efficient to build, then the projects just won’t get built. NIMBYs and opponents will be happy.
I don’t think anything about the particular structure of the repeal, though, is empowering opponents. It is what it is.
Like, you can begin construction by entering into procurement contracts for equipment to build your facility so if you’re building a project you can enter into a contract today to get modules, warehouse those modules, and then use those modules to cause one or more projects as having begun construction based on when they were purchased.
If a developer today is able to enter into those contracts, that’ll be outside the scope of anything an opponent would have anything to do with.
Are we expecting people to make decisions before the Senate has acted on this bill or are people in a holding pattern?
When the election happened in November I had increased interest in clients who were concerned about a worst-case scenario like this, that credits would be repealed at or around the time of enactment. We had clients betting not that this would happen but [there was still] a 1% chance or a 5% chance. And folks asked then, how do we re-up thinking about how to begin construction on projects as a precautionary measure.
A lot of my clients were thinking about the worst case scenario beforehand. This is probably just escalating their thinking.
I don’t think people have a lot of time to think about what to do, though, given the 60-day cut off after enactment.
What is the silver lining here? Is there any? If I were to talk to a developer right now, is there an on the bright side here?
The short answer is no. Maybe it makes power projects a lot more expensive and American energy a lot more expensive and therefore those building power projects can make more money from their existing projects? That’s whether they’re renewable or otherwise. Other than higher power costs – for consumers, regular old taxpayers – there’s not really a bright side.
So, what you’re saying is, you don’t have any good news?
The good news is the Senate is still out there and needs to review this. There are a few senators who’ve expressed strong support of these credits – I’m not super optimistic, but four senators tend to have a bit more sway than congresspeople do.
How well-organized opposition is killing renewable energy in a state that’s desperate for power
The Commonwealth of Virginia is clamping down on solar farms.
At least 39 counties in Virginia – 41% of all the state’s counties – now have some form of restriction on solar development, according to a new analysis of Heatmap Pro data. Many of these counties adopted ordinances significantly reducing how much land can be used and capping the total acreage of land allowed for solar projects. Some have gone further by banning new solar facilities altogether.
I wanted to get to the bottom of the Virginia dilemma after we collected this data and crunched these numbers because, simply put, it didn’t make a lot of sense.
Historically Virginia, like Texas, has been a relatively favorable state for energy infrastructure. Culturally, it would make sense for people to welcome new forms of energy. The state is an epicenter in the American data center boom, home to about 35% of all hyperscalers in the world – an economic boon that’ll require inordinate amounts of power. One would assume people want that energy to come from cleaner sources!
Yet counties across the state have been rolling up the red carpets. Mecklenburg recently banned new solar projects. Surry limited solar projects to a tenth of the county’s acreage. Buckingham has put a firm limit on development to 7,500 megawatts of solar projects in total. Why?
Well, here’s where I’ve landed: the opposition’s well organized and benefits from a history of conflicts over other forms of development.
Citizens for Responsible Solar – an anti-renewables organization headquartered in Culpepper, Virginia, founded by a former special adviser to President George W. Bush – has been active in the state since at least 2018. Although it is a national organization in name, and does have factions in other states, its website primarily boasts “success stories” in Virginia counties, including Augusta, Culpepper, Fauquier, Gloucester, Henry, Madison, Mecklenburg, and Page counties.
CRS is primarily focused on opposing solar on agricultural lands – a topic we’ve previously covered thoroughly – as well as forested areas. It claims to not be entirely against solar energy but only wants projects on industrial-zoned acreage. But the organization is also well documented to spread misinformation about solar energy itself.
Dr. Faith Harris of Virginia Interfaith Power & Light told me this week that her experience speaking with individuals opposed to renewable energy in the state indicates that falsehoods and conspiracy theories are playing a large role in turning otherwise friendly counties against solar energy. In her view, this has become an even bigger problem since the state turned red with the election of Governor Glenn Youngkin, who this week vetoed a slate of climate bills, including one that would make it easier to permit small solar farms and battery storage facilities.
“We’ve had a lot of misinformation and directions and narratives changed trying to initiate a resurgence of more fossil fuels,” Harris said. “It’s part of the movement to prevent and stop renewable energy.”
There’s something else going on, too, and it’s historically linked to systemic social inequities in some of these counties. They’ve been burned before, Harris noted, over the construction of other forms of industrial energy.
For years, Buckingham County residents resisted the construction of a gas compression station smack dab in the middle of a historically Black neighborhood. I covered this conflict early in my environmental journalism career because it was central to the construction of the now-defunct Atlantic Coast gas pipeline. It was a fight Buckingham won, in no small part due to the support of organizations like Virginia Interfaith Power & Light.
Now, Buckingham has capped solar projects. I asked Harris why a county that was so aggressive in fighting gas power would be against renewable energy, and she bluntly replied that these two fights are “pretty much directly related” – with the added conspiracy factor making matters worse for solar projects. For example, she’s heard complaints from residents in Buckingham about trees that could be cut down for solar, echoing the claims spread by organizations like CRS.
“People in the communities have been challenged and frightened in some way that solar is somehow going to have an impact on them, and not really even recognizing that they’re constantly being exposed to air and water contamination,” she said. “I don’t think the average person understands how they get their energy.”
She added: “This is still an ongoing challenge and in many ways we – the climate movement – have failed to educate the public well enough.”