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A conversation with Nick Loris of C3 Solutions

This week’s conversation is with Nick Loris, head of the conservative policy organization C3 Solutions. I wanted to chat with Loris about how he and others in the so-called “eco right” are approaching the data center boom. For years, groups like C3 have occupied a mercurial, influential space in energy policy – their ideas and proposals can filter out into Congress and state legislation while shaping the perspectives of Republican politicians who want to seem on the cutting edge of energy and the environment. That’s why I took note when in late April, Loris and other right-wing energy wonks dropped a set of “consumer-first” proposals on transmission permitting reform geared toward addressing energy demand rising from data center development. So I’m glad Loris was available to lay out his thoughts with me for the newsletter this week.
The following conversation was lightly edited for clarity.
How is the eco right approaching permitting reform in the data center boom?
I would say the eco-right broadly speaking is thinking of the data center and load growth broadly as a tremendous and very real opportunity to advance permitting and regulatory reforms at the federal and state level that would enable the generation and linear infrastructure – transmission lines or pipelines – to meet the demand we’re going to see. Not just for hyperscalers and data centers but the needs of the economy. It also sees this as an opportunity to advance tech-neutral reforms where if it makes sense for data centers to get power from virtual power plants, solar, and storage, natural gas, or co-locate and invest in an advanced reactor, all options should be on the table. Fundamentally speaking, if data centers are going to pay for that infrastructure, it brings even greater opportunity to reduce the cost of these technologies. Data centers being a first mover and needing the power as fast as possible could be really helpful for taking that step to get technologies that have a price premium, too.
When it comes to permitting, how important is permitting with respect to “speed-to-power”? What ideas do you support given the rush to build, keeping in mind the environmental protection aspect?
You don’t build without sufficient protections to air quality, water quality, public health, and safety in that regard.
Where I see the fundamental need for permitting reform is, take a look at all the environmental statutes at the federal level and analyze where they’re needing an update and modernization to maintain rigorous environmental standards but build at a more efficient pace. I know the National Environmental Policy Act and the House bill, the SPEED Act, have gotten lots of attention and deservedly so. But also it’s taking a look at things like the Clean Water Act, when states can abuse authority to block pipelines or transmission lines, or the Endangered Species Act, where litigation can drag on for a lot of these projects.
Are there any examples out there of your ideal permitting preferences, prioritizing speed-to-power while protecting the environment? Or is this all so new we’re still in the idea phase?
It’s a little bit of both. For example, there are some states with what’s called a permit-by-rule system. That means you get the permit as long as you meet the environmental standards in place. You have to be in compliance with all the environmental laws on the books but they’ll let them do this as long as they’re monitored, making sure the compliance is legitimate.
One of the structural challenges with some state laws and federal laws is they’re more procedural statutes and a mother may I? approach to permitting. Other statutes just say they’ll enforce rules and regulations on the books but just let companies build projects. Then look at a state like Texas, where they allow more permits rather quickly for all kinds of energy projects. They’ve been pretty efficient at building everything from solar and storage to oil and gas operations.
I think there’s just many different models. Are we early in the stages? There’s a tremendous amount of ideas and opportunities out there. Everything from speeding up interconnection queues to consumer regulated electricity, which is kind of a bring-your-own-power type of solution where companies don’t have to answer or respond to utilities.
It sounds like from your perspective you want to see a permitting pace that allows speed-to-power while protecting the environment.
Yeah, that’s correct. I mean, in the case of a natural gas turbine, if they’re in compliance with the regulations at the state and federal level I don’t have an issue with that. I more so have an issue if they’re disregarding rules at the federal or state level.
We know data centers can be built quickly and we know energy infrastructure cannot. I don’t know if they’ll ever get on par with one another but I do think there are tremendous opportunities to make those processes more efficient. Not just for data centers but to address the cost concerns Americans are seeing across the board.
Do you think the data center boom is going to lead to lots more permitting reform being enacted? Or will the backlash to new projects stop all that?
I think the fundamental driver of permitting reform will be higher energy prices and we’ll need more supply to have more reliability. You just saw NERC put out a level 3 warning about the stability of the grid, driven by data centers. People really pay attention to this when prices are rising.
Will data centers help or hurt the cause? I think that remains to be seen. If there’s opportunities for data centers to pay for infrastructure, including what they’re using, there are areas where projects have been good partners in communities. If they’re the ones taking the opportunity to invest, and they can ensure ratepayers won’t be footing the bill for the power infrastructure, I think they’ll be more of an asset for permitting reform than a harm.
The general public angst against data centers is – trying to think of the right word here – a visceral reaction. It snowballed on itself. Hopefully there’s a bit of an opportunity for a reset and broader understanding of what legitimate concerns are and where we can have better education.
And I’m certainly not shilling for the data centers. I’m here to say they can be good partners and allies in meeting our energy needs.
I’m wondering from your vantage point, what are you hearing from the companies themselves? Is it about a need to build faster? What are they telling you about the backlash to their projects?
When I talk to industry, speed-to-power has been their number one two and three concern. That is slightly shifting because of the growing angst about data centers. Even a few years ago, when developers were engaging with state legislatures, they were hearing more questions than answers. But it’s mostly about how companies can connect to the grid as fast as possible, or whether they can co-locate energy.
Okay, but going back to what you just said about the backlash here. As this becomes more salient, including in Republican circles, is the trendline for the eco-right getting things built faster or tackling these concerns head on?
To me it's a yes, and.
I would broaden this out to be not just the eco right but also Abundance progressives, Abundance conservatives, and libertarians. We need to address these issues head on – with better education, better community engagement. Make sure people know what is getting built. I mean, the Abundance movement as a whole is trying to address those systemic problems.
It’s also an opportunity for the necessary policy reform that has plagued energy development in the U.S. for decades. I see this from an eco right perspective and an abundance progressive perspective that it's an opportunity to say why energy development matters. For families, for the entire U.S. energy economy, and for these hyperscalers.
But if you don’t win in the court of public opinion, none of this is going to matter. We do need to listen to the communities. It’s not an either or here.
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Chatting about win-win solutions with the Abundance Institute’s Ryan Norris.
This week’s conversation is with Ryan Norris, senior fellow for energy policy at the Abundance Institute. The libertarian-leaning institute — whose name cleverly shortens to AI — is a new-ish entity with increasing relevance in energy and tech spaces. As Norris and I discussed, it’s starting to help shape policy on data center development and the generation that’ll power it all, especially in Republican circles. Norris himself previously worked with Americans for Prosperity, a right-wing political organization. I reached out to him and asked if we could chat because I wanted to know more about the institute’s work within the energy space. He wound up saying a lot more than I expected. So let’s dive into it.
The following conversation was lightly edited and abridged for clarity.
So let’s start with what you’re working on. What’s on your desk these days?
Here at Abundance, we sit at the juncture of emerging technology and the energy they need to bring that new technology to bear to impact life positively. We are always in a constant state of learning and researching what the latest thoughts and feelings are around certain policies, particularly around AI and data centers, and then energy technology. How do they feel about nuclear? Geothermal? Solar and battery arrays?
A lot of what I’m working on is Project Gigawatt, a body of policy that fits into permitting, generation, the grid, transmission, and then market and demand. Policies that we believe will generate more, transmit more, and as much of a free market approach as possible. Knowing that a lot of states have regulated utilities, when the state utility can’t produce what the state can potentially actually generate or would need to in order to accommodate large loads, we think there needs to be other opportunities to either bring that power or purchase it in a different way.
When it comes to this policy set, how are you taking into account the intensifying backlash to data center and AI infrastructure, as well as the energy attached to it?
As everyone can sense, things are moving rapidly, and there is a natural inclination to question how fast we’re going. I think these concerns need to be addressed seriously and respectfully. You can’t just say negative things about people who care about water quality or impacts to their local economies. Those are valid. I’ve lived through those. I come from a rural place in Arkansas that had oil and gas plays. And I’ve seen there needs to be conversations with people living in those areas too.
We cannot discount the backlash. When you take the legitimate concerns and pair them with the opportunities coming, I think there’s actually a chance to set up win-win solutions. It shouldn’t be a win-lose scenario here. They have skepticism about AI in the short and long term — that’s a natural inclination and not a negative, per se. But educating people and policymakers about data centers, that’s important.
What is your approach to the rise in land use regulation around data centers and energy infrastructure, moratoria and restrictive ordinances?
As much as possible, you want the infrastructure and cost allocation to be borne by the business causing it. That’s the motivation behind a lot of colocation partnerships happening right now, like the Kilby project in Texas, with natural gas powering a Microsoft hyperscale.
To us, it’s about setting up the opportunity for private property owners to sell to those hyperscalers and those generating the energy. Setting up situations where you’re not stopping people from benefiting. A lot of the “bring your own power” concept, we really like that. Maybe having it where power purchase agreements are more in the mix, things along those lines. That’s where I see things.
The energy increases to our utility bills, people are concerned about it, and that’s a bread and butter issue. That’s the approach: We know we need grid upgrades and want to have the most cost effective versions of those as possible, but you want those needing the power paying for it and not putting it on the backs of residents.
I’m curious, what’s you and your organization’s approach to the rise of gas infrastructure built for AI and the potential impacts that could have on climate change?
I don’t discount the issue of climate change.
Let’s say we’re not able to decarbonize enough to reverse the effects of warmth. We know we’ll have to create energy. We know we have other options for energy that need to be in the mix — more nuclear, which now even some of those who are climate-minded understand is an abundant energy source. I’m also interested in new technologies in geothermal where it can be viable in more places than we thought. You can drill down and tap hot rocks, a basin of water, turn a turbine, and that’s more acceptable for those who care about the climate. And states are looking at it, including my state of Arkansas. I bring these up because I also care about sources that provide firm, consistently available power.
We attended the American Legislative Exchange Council, and one of the things we do, we’re voting members on the energy, environment, and agriculture task force. We’re pro letting the market decide what they need. So we took opposite stances from what people typically consider normal standards on the center-right about banning “net-zero” for local governments. It did pass as model legislation but if we believe “all of the above” is the approach, we also want to be principally correct to ourselves that it doesn’t mean banning wind or solar where it’s viable.
My last question: What’s your thought on the future of politics around AI infrastructure and energy generation for it?
There’s definitely headwinds to those in that industry. I think the sense is, they understood what they wanted and didn’t see any barriers to the way they’d go about it. That’s causing ripple effects in our politics at the local level, including here in Arkansas, where I live in Pulaski County. I think it’ll stay important particularly as it connects to affordability concerns around energy. We know we need more energy, but we want it at the lowest cost possible to the residential side. If people are feeling like data centers are driving the demand for the energy and aren’t on the hook for it, that’s going to position them to be more negative towards the technology.
But we have to expand the conversation. There are folks out there talking about 3D printing for homes, using proprietary cement mixes to build homes in a few weeks when they took months. Agriculture is using robotics in lieu of pesticides and herbicides. Advanced manufacturing is improving the quality of medical equipment. No one completely understands the end goal of new energy to fuel the data centers and AI to get us where there’s a net benefit to them.
Plus more of the week’s biggest development fights.
1. Shelby County, Alabama — The Trump administration’s widening effort to intervene in rural energy project fights is facing an early test: What happens if companies don’t take it seriously?
2. Ozaukee County, Wisconsin — Speaking of walls, we just saw the political power of the data center resistance hit one in the Badger State.
3. Everywhere in Texas — Texas Governor Greg Abbott is getting a lot of love for his data center standards, with major developers rolling out press statements claiming they’ll comply.
4. Herkimer County, New York — Something weird is going on in upstate New York with a monastery, a wind farm, and the Trump administration. I’m not sure what to make of it yet.
Renewable and pipeline companies alike have come out against the administration’s attempt to leverage an obscure Cold War-era law.
The Trump administration is considering changing its interpretation of an obscure law related to farmland ownership to transform it into a national security instrument with profound impacts for U.S. renewables projects — and fossil fuels. U.S. energy developers and their trade groups are ringing alarms about the plan, arguing that Trump may be about to undermine their relationships with international investors in allied nations.
For the past week, I’ve been hearing anxious rumbling from contacts in D.C. about a proposed regulation from the Agriculture Department published on June 26. The plan has gotten little attention so far outside of energy trade publications and wonk analysis. Pay no mind to the relative quiet — anyone working in energy development needs to know what’s at stake. Explaining why this is sending D.C. energy lobbyists into a tizzy gets complicated quickly, so bear with me. But the easiest way to sum it up is a fear of death by a thousand cuts.
The administration’s proposal would morph USDA’s approach to the Agricultural Foreign Investment Disclosure Act of 1978, often referred to in legal circles by the acronym AFIDA. This Cold War-era statute created a system for collecting information on farmland owned by people or entities born, headquartered, or otherwise governed by laws outside of the United States, requiring people or companies labeled “foreign persons” to disclose land holdings and transactions to the federal government.
As I reported Monday, Senate Democrats claim the department is proposing to expand the definition of “agricultural land” to include all solar and wind projects, as well as pipelines. I’ve since confirmed this is true, as stated in a supplemental document released by USDA. But there’s a lot more causing companies headaches. The plan would drastically expand the pool of entities and people required to report to USDA by lowering the minimum foreign investment threshold for reporting, compel information on rights of ways when it wasn’t asked for before, and force companies to do detailed geospatial mapping of farmland.
You may not have heard of AFIDA, but security hawks in D.C. and the most affected multi-national companies have been agitating to reform the law for years. Their concerns have focused primarily on Chinese firms and the agriculture sector. In 2022, Republicans in Congress anxious about Chinese companies purchasing farmland near military bases requested an independent Government Accountability Office audit of AFIDA compliance. Two years later, the watchdog office found the law was falling significantly short of its stated objective to track relevant land transactions.
Representatives from the energy sector tell me the actual proposed changes would create a severe red tape headache for developers of all stripes.
Over the past week, almost every major industry trade group in renewables and fossil fuels has filed a comment excoriating the plan, with even some oil and gas allies such as the Western Energy Alliance calling for it to be thrown onto the trash heap. The American Petroleum Institute and Interstate Natural Gas Association of America told the USDA that the plan would “chill foreign investment in U.S. energy infrastructure and increase the cost of capital for pipeline projects with no benefit to national security.”
Meanwhile, renewable energy industry representatives seemed particularly frightened by the proposal given existing financial relationships with investors, parent companies, and business partners in U.S.-aligned nations. American Clean Power said it would burden “good faith, low-risk filers from allied countries,” while the Solar Energy Industries Association said the proposal warranted “a full withdrawal” as it had “unintended national security consequences and [would] unnecessarily expose business sensitive information.”
So far, only one large publicly-traded renewables company has commented with criticisms of the proposal: EDP Renewables North America, a subsidiary of a Portuguese company. “We respectfully urge USDA to carefully weigh the compliance burdens imposed by each proposed change against the incremental national security benefit it provides,” wrote Tom LoTurco, an executive vice president for EDP Renewables North America.
Those calling for reform have wanted to streamline the filing process, not add even more bureaucracy. “Solar and wind, they’ve long been considered agricultural land users. But under this rule, costs are going to go way up,” Jeff Hunter, an attorney with Kelley Drye and Warren LLP, told me. “It’s going from a manageable material cost to something that’s going to have a meaningful effect on the bottom line.” Hunter represents the AFIDA Modernization Coalition, an ad hoc coalition of companies that routinely file under the law. Hunter said the coalition includes founders Invenergy and Doral Renewables, both of which have substantial renewables investments in the U.S. as well as investment originating from other countries.
“It’s going from a manageable material cost to something that’s going to have a meaningful effect on the bottom line.”
Many large renewable energy companies have substantial foreign investment because of the European trend towards ESG-minded financing practices, Hunter added. The law was already on developers’ radars, but this proposal presents a wholly different regime.
As Trump re-entered office, it was reasonable to expect his administration would attempt to “protect farmland” from renewable energy development given the issue’s salience in deep red rural pockets of his supporter base. Still, when the Agriculture Department last May released a “National Farm Security Action Plan” stating that it would change AFIDA regulations, I didn’t think much of it. The plan didn’t mention the energy sector at all.
In December USDA solicited public comments on ways to change the rules, but it was a sleepy affair with little conflict involving renewables or anything else. Even the Center for Regulatory Freedom, a conservative policy shop created by the political organization CPAC, sought changes while emphasizing the “United States benefits from foreign capital in agriculture, renewable energy, and rural development, and AFIDA should not become a blunt instrument that discourages lawful and economically beneficial transactions.”
All this is to say, nobody seemed to anticipate the bomb USDA suddenly dropped on the energy industry.
The plan may change between proposal and implementation. But so far only one organization I know of is focused on ensuring that solar and wind are targeted under the new rulemaking: the America First Policy Institute, a Trump-aligned think tank co-founded by Brooke Rollins, the current Secretary of Agriculture. In comments filed by AFPI’s Adam Savit, the conservative think tank recommended the government preserve “the inclusion of solar and wind generation on agricultural land” because it “prevents the conversion of reportable land into unreportable land through a change in use.” The group’s comments did not address the rule’s references to pipelines.
I asked AFPI to ask if it had any additional comment on the rulemaking, and specifically if it had any view on the new definition for agricultural land. In a statement provided by the think tank, its senior director for China policy Piero Tozzi told me that “the proposed change is necessary to address who owns the land and what control it gives the owner.”
“The current reporting framework for foreign acquisition of American farmland before land was understood as a potential strategic perch for foreign adversaries,” Tozzi said.
The Agriculture Department rarely comments on public input received on proposed rulemakings and did not respond to a request for comment for this story. On Monday, the agency sent me the following statement in response to the Senate Democrats’ claims: “As Secretary Rollins has noted before, the regulations governing the Agricultural Foreign Investment Disclosure Act of 1978 are extremely outdated and need to be updated to better reflect today’s conditions. USDA looks forward to considering all public comments before finalizing the rule.”