This article is exclusively
for Heatmap Plus subscribers.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.

Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
A conversation with the co-chair of the House Sustainable Energy and Environment Coalition

This week’s conversation is with Rep. Sean Casten, co-chair of the House Sustainable Energy and Environment Coalition – a group of climate hawkish Democratic lawmakers in the U.S. House of Representatives. Casten and another lawmaker, Rep. Mike Levin, recently released the coalition’s priority permitting reform package known as the Cheap Energy Act, which stands in stark contrast to many of the permitting ideas gaining Republican support in Congress today. I reached out to talk about the state of play on permitting, where renewables projects fit on Democrats’ priority list in bipartisan talks, and whether lawmakers will ever address the major barrier we talk about every week here in The Fight: local control. Our chat wound up immensely informative and this is maybe my favorite Q&A I’ve had the liberty to write so far in this newsletter’s history.
The following conversation was lightly edited for clarity.
Okay, so to start, how does the Cheap Energy Act fit into the bipartisan permitting talks?
There are two separate theories about how Congress is supposed to work, and neither of these theories is universally true but I think they inform two different approaches: do you believe the purpose of Congress is to craft good policy and then put together political consensus to put that policy forward or do you think the purpose of Congress is to find where political compromise exists and then advance the policy that can proceed along that constraint?
Depending on the situation you take Door 1 or you take Door 2.
What Mike Levin and I have tried to do with our Cheap Energy Act is to say, let’s identify the barriers to deploying cheap energy in the United States, let’s try to find the policy that’ll help consumers first and then try to get that policy done. That approach – because of the way our politics is geographically sorted out in our country – implies a wealth transfer from energy producers to energy consumers. And energy producers in this country tend to be dominant in Republican areas. That’s where coal mining is, oil and gas, logging. And energy consumers are where the population is, which skews Democratic. So on a bipartisan basis you really can’t put consumers first because that is detrimental to producers.
I think that’s why you have these two different approaches going on. I guess I have a bias towards our approach but I think we have to be very candid that the other approach does not remove the barriers to cheap energy. It removes the barriers to dirty energy.
To an overwhelming degree, and I’m slightly exaggerating, but there really aren’t permitting barriers to clean energy. There are a lot of permitting barriers to dirty energy. Which is not to say you can’t weaponize the permitting system to stop clean energy from going forward. But if you’re building a solar farm and it has to have a wire that connects it to a load, your environmental footprint is very small.
Now we’ve done some things in our bill to pre-identify corridors where there is minimal species disruptions, minimal disruption of historical artifacts, and say these are corridors where you can build things fast without guessing. Let’s not kid ourselves here: the Antiquities Act exists for a reason, the Endangered Species Act exists for a reason, and the Clean Water Act exists for a reason. But the footprint of those projects environmentally is just much, much smaller than an oil rig and a pipeline and a refinery because all of those things have the potential to leak nasty chemicals that permanently defile the air, land, and water in the vicinity.
The challenge that manifests through permitting is that if I want to lower your cost of energy, that means by definition I am undercutting your current energy provider. For the most part, that provider has undue power over whether or not you get a permit. And they have an incentive to start pamphleting the neighbors around a new transmission line, for example, to say a line is going to lower people’s property values. That’s because it is an economic threat. The reason I know that’s not an issue is you never see utilities struggle to get a new wire.
I previously reported on how the biggest sticking point in bipartisan permitting talks underway today is whether Republicans will go for tying Trump’s hands in his pursuit to stop federal renewable energy permits. Do you think any GOP lawmakers will actually do that?
Ignore whatever politics someone might have. If you’re representing a district that had a ton of wind power, not a lot of load, and you live 200 miles from a major urban center that was paying a lot for electricity, you would probably be very supportive of making it easier to build the wire to access that market and making it easier for the wind turbines to go up.
I have just described the entire Iowa congressional delegation.
Let’s say in the next election, we flip some of those Iowa seats and now what was Republican is now a Democrat, that wouldn’t change the interests of the Iowa delegation. It would just change the party. So there’s reasons why [Iowa Republican] Randy Feenstra and I have led letters on trying to build SOO Green, this high voltage transmission line that would solve exactly the problem I described there. That’s not because he’s a Republican – it’s because it is in the interests of his community.
But then why do we see so few Republicans standing up to the president in his fight specifically against renewable energy, at least in the permitting talks?
We have a huge problem with the White House that they’ve been entirely captured by the interests of energy producers and they have a rooted interest in making the price of energy expensive. The reason why they’re blocking wind permits, and the reason why they’re accelerating oil and gas exports, is because they’re completely captured by people who want the price of oil and gas to be high and they lose money when the price is low.
But that’s a completely separate series of problems.
Within the House, the leadership of the Democratic Party represents concentrated areas that would like the price of energy to be cheap. The leadership of the Republican Party represents oil and gas extractive areas that would like the price of energy to be high. So a rank and file member of the Democratic Party has no particular problem advocating for energy consumers because they’re not crossing leadership. A rank and file member of the Republican Party has no particular problem advocating for the interests of producers because they’re not crossing leadership.
I think where there’s a slight distinction is you can identify any number of Democrats from the oil and gas patch who will regularly vote with the interests of oil and gas producers, and leadership will understand why they are doing that. But it is much harder to identify members of the Republican Party who are advocating for the interests of consumers and get a pass from leadership to do that.
Mmm. So to close the loop on this, how much of a priority is it for Democrats that whatever bipartisan permitting deal is made won’t be used to speed things up for fossil while Trump continues to put the brakes on every little thing a renewable energy permit requires?
Look, I’ve seen nothing out of the House or Senate that wouldn’t do exactly what you just said. Everything would make the price of energy more expensive and make it harder to do reasonable and thoughtful environmental review. In the House and Senate as currently constituted, we are not going to get a good bill that comes through.
I think within the House you have a growing awareness that energy prices are a problem. Certainly the recent elections in New Jersey and Virginia have made that clear. You need to have a strategy to bring energy costs down. That does create an opportunity prior to next November where folks say, can I do something to help my community?
We’ll see when this bill ultimately gets out whether we get much support. I’ll say we’ve privately found Republican support for pieces of it. The way we fix this problem is by doing what the Republican Party used to be known for, which is competition. There’s no reason why we couldn’t incentivize utilities to make money by saving their consumers money. Or incentivize various pieces of the energy industry to better interconnect their markets so you could always choose the lowest cost option because Adam Smith is a god. Those arguments play much better with Republicans in states that have heavily deregulated. There are individual pieces where we’ve found Republican support. And if you think good policy and economics wins, let’s make good policy and economics wins and build support for it.
Last thing – you said there aren’t permitting barriers to clean energy. But in my reporting, I’m constantly covering local communities opposing renewable energy projects, transmission siting, battery storage. It’s a major barrier to development.
What role do you think the federal government and Congress has in dealing with the issue of local control?
It’s an old saw: depending on the issue, I’ll tell you that I’m supportive of states rights.
There are huge chunks of our energy system that should be federalized but aren’t. As an example, it makes no sense that if you want to build a gas pipeline across multiple states in the U.S., you go to FERC and they are the sole permitting authority and they decide whether or not you get a permit. If you go to the same corridor and build an electric transmission line that has less to worry about because there’s no chance of leaks, you have a different permitting body every time you cross a state line. That’s only because of laws going back to the 1930s that gave FERC sole authority on gas but not on the electric side. Our bill would fix that.
We’ve had this legacy of local control that has – not intentionally – had the practical effect of making it much easier for communities to block electric generation and distribution than natural gas distribution. This necessarily means that we have made natural gas producers more politically powerful and electricity consumers less politically powerful. Whether it was an intentional choice or not, it was a choice.
There are ways consistent with energy policy and congressional law where we can rationalize and have more parity across the energy system to make sure we make the right decision every time.
I also think at the end of the day, markets win. West Virginia one hundred years ago was the place to site your energy-intensive manufacturer because they had a ton of hydro and a ton of coal. They’ve tapped out the hydro, the coal is no longer cheap, and the economy is not good anymore. Then shift to Texas which has built more wind and solar than any state in the country and unusually for a red state has been much more pro-competition in how they regulate their energy markets, that has given them more dynamic electricity costs. Those are two different red states and sets of policy choices.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
A chat with CleanCapital founder Jon Powers.
This week’s conversation is with Jon Powers, founder of the investment firm CleanCapital. I reached out to Powers because I wanted to get a better understanding of how renewable energy investments were shifting one year into the Trump administration. What followed was a candid, detailed look inside the thinking of how the big money in cleantech actually views Trump’s war on renewable energy permitting.
The following conversation was lightly edited for clarity.
Alright, so let’s start off with a big question: How do investors in clean energy view Trump’s permitting freeze?
So, let’s take a step back. Look at the trend over the last decade. The industry’s boomed, manufacturing jobs are happening, the labor force has grown, investments are coming.
We [Clean Capital] are backed by infrastructure life insurance money. It’s money that wasn’t in this market 10 years ago. It’s there because these are long-term infrastructure assets. They see the opportunity. What are they looking for? Certainty. If somebody takes your life insurance money, and they invest it, they want to know it’s going to be there in 20 years in case they need to pay it out. These are really great assets – they’re paying for electricity, the panels hold up, etcetera.
With investors, the more you can manage that risk, the more capital there is out there and the better cost of capital there is for the project. If I was taking high cost private equity money to fund a project, you have to pay for the equipment and the cost of the financing. The more you can bring down the cost of financing – which has happened over the last decade – the cheaper the power can be on the back-end. You can use cheaper money to build.
Once you get that type of capital, you need certainty. That certainty had developed. The election of President Trump threw that into a little bit of disarray. We’re seeing that being implemented today, and they’re doing everything they can to throw wrenches into the growth of what we’ve been doing. They passed the bill affecting the tax credits, and the work they’re doing on permitting to slow roll projects, all of that uncertainty is damaging the projects and more importantly costs everyone down the road by raising the cost of electricity, in turn making projects more expensive in the first place. It’s not a nice recipe for people buying electricity.
But in September, I went to the RE+ conference in California – I thought that was going to be a funeral march but it wasn’t. People were saying, Now we have to shift and adjust. This is a huge industry. How do we get those adjustments and move forward?
Investors looked at it the same way. Yes, how will things like permitting affect the timeline of getting to build? But the fundamentals of supply and demand haven’t changed and in fact are working more in favor of us than before, so we’re figuring out where to invest on that potential. Also, yes federal is key, but state permitting is crucial. When you’re talking about distributed generation going out of a facility next to a data center, or a Wal-Mart, or an Amazon warehouse, that demand very much still exists and projects are being built in that middle market today.
What you’re seeing is a recalibration of risk among investors to understand where we put our money today. And we’re seeing some international money pulling back, and it all comes back to that concept of certainty.
To what extent does the international money moving out of the U.S. have to do with what Trump has done to offshore wind? Is that trade policy? Help us understand why that is happening.
I think it’s not trade policy, per se. Maybe that’s happening on the technology side. But what I’m talking about is money going into infrastructure and assets – for a couple of years, we were one of the hottest places to invest.
Think about a European pension fund who is taking money from a country in Europe and wanting to invest it somewhere they’ll get their money back. That type of capital has definitely been re-evaluating where they’ll put their money, and parallel, some of the larger utility players are starting to re-evaluate or even back out of projects because they’re concerned about questions around large-scale utility solar development, specifically.
Taking a step back to something else you said about federal permitting not being as crucial as state permitting–
That’s about the size of the project. Huge utility projects may still need federal approvals for transmission.
Okay. But when it comes to the trendline on community relations and social conflict, are we seeing renewable energy permitting risk increase in the U.S.? Decrease? Stay the same?
That has less to do with the administration but more of a well-structured fossil fuel campaign. Anti-climate, very dark money. I am not an expert on where the money comes from, but folks have tried to map that out. Now you’re even seeing local communities pass stuff like no energy storage [ordinances].
What’s interesting is that in those communities, we as an industry are not really present providing facts to counter this. That’s very frustrating for folks. We’re seeing these pass and honestly asking, Who was there?
Is the federal permitting freeze impacting investment too?
Definitely.
It’s not like you put money into a project all at once, right? It happens in these chunks. Let’s say there’s 10 steps for investing in a project. A little bit of money at step one, more money at step two, and it gradually gets more until you build the project. The middle area – permitting, getting approval from utilities – is really critical to the investments. So you’re seeing a little bit of a pause in when and how we make investments, because we sometimes don’t know if we’ll make it to, say, step six.
I actually think we’ll see the most impact from this in data center costs.
Can you explain that a bit more for me?
Look at northern Virginia for a second. There wasn’t a lot of new electricity added to that market but you all of the sudden upped demand for electricity by 20 percent. We’re literally seeing today all these utilities putting in rate hikes for consumers because it is literally a supply-demand question. If you can’t build new supply, it's going to be consumers paying for it, and even if you could build a new natural gas plant – at minimum that will happen four-to-six years from now. So over the next four years, we’ll see costs go up.
We’re building projects today that we invested in two years ago. That policy landscape we invested in two years ago hasn’t changed from what we invested into. But the policy landscape then changed dramatically.
If you wipe out half of what was coming in, there’s nothing backfilling that.
Plus more on the week’s biggest renewables fights.
Shelby County, Indiana – A large data center was rejected late Wednesday southeast of Indianapolis, as the takedown of a major Google campus last year continues to reverberate in the area.
Dane County, Wisconsin – Heading northwest, the QTS data center in DeForest we’ve been tracking is broiling into a major conflict, after activists uncovered controversial emails between the village’s president and the company.
White Pine County, Nevada – The Trump administration is finally moving a little bit of renewable energy infrastructure through the permitting process. Or at least, that’s what it looks like.
Mineral County, Nevada – Meanwhile, the BLM actually did approve a solar project on federal lands while we were gone: the Libra energy facility in southwest Nevada.
Hancock County, Ohio – Ohio’s legal system appears friendly for solar development right now, as another utility-scale project’s permits were upheld by the state Supreme Court.
The offshore wind industry is using the law to fight back against the Trump administration.
It’s time for a big renewable energy legal update because Trump’s war on renewable energy projects will soon be decided in the courts.
A flurry of lawsuits were filed around the holidays after the Interior Department issued stop work orders against every offshore wind project under construction, citing a classified military analysis. By my count, at least three developers filed individual suits against these actions: Dominion Energy over the Coastal Virginia offshore wind project, Equinor over Empire Wind in New York, and Orsted over Revolution Wind (for the second time).
Each of these cases are moving on separate tracks before different district courts and the urgency is plain. I expect rulings in a matter of days, as developers have said in legal filings that further delays could jeopardize the completion of these projects due to vessel availability and narrow timelines for meeting power contracts with their respective state customers. In the most dire case, Equinor stated in its initial filing against the government that if the stop work order is implemented as written, it would “likely” result in the project being canceled. Revolution Wind faces similar risks, as I’ve previously detailed for Heatmap.
Meanwhile, around the same time these cases were filed, a separate lawsuit was dropped on the Interior Department from a group of regional renewable energy power associations, including Interwest Energy Alliance, which represents solar developers operating in the American Southwest – ground zero for Trump’s freeze on solar permits.
This lawsuit challenges Interior Secretary Doug Burgum’s secretarial orders requiring his approval for renewable energy decisions, the Army Corps of Engineers’ quiet pause on wetlands approvals, and the Fish and Wildlife Services’ ban on permitting eagle takes, as well as its refusal to let developers know if they require species consultations under the Endangered Species Act. The case argues that the administration is implementing federal land law “contrary to Congress’ intent” by “unlawfully picking winners and losers among energy sources,” and that these moves violate the Administrative Procedures Act.
I expect crucial action in this case imminently, too. On Thursday, these associations filed a motion declaring their intent to seek a preliminary injunction against the administration while the case is adjudicated because, as the filing states, the actions against the renewables sector are “currently costing the wind and solar industry billions of dollars.”
Now, a victory here wouldn’t be complete, since a favorable ruling would likely be appealed and the Trump administration has been reluctant to act on rulings they disagree with. Nevertheless, it would still be a big win for renewables companies frozen by federal bureaucracy and ammo in any future legal or regulatory action around permit activity.
So far, Trump’s war on solar and wind has not really been tested by the courts, sans one positive ruling against his anti-wind Day One executive order. It’s easy in a vacuum to see these challenges and think, Wow, the industry is really fighting back! Maybe they can prevail? However I want to remind my readers that simply having the power of the federal government grants one the capacity to delay commercial construction activity under federal purview, no matter the legality. These matters can become whack-a-mole quite quickly.
Dominion Energy’s Coastal Virginia offshore wind project is one such example. Intrepid readers of The Fight may remember I was first to report the Trump administration might try to mess around with the permits previously issued for construction through litigation brought by anti-renewables activists, arguing the government did not adequately analyse potential impacts to endangered whales. Well, it appears we’re getting closer to an answer: In a Dec. 18 filing submitted in that lawsuit, Justice Department attorneys said they have been “advised” that the Interior Department is now considering whether to revoke permits for the project.
Dominion did not respond to a request for comment about this filing, but it is worth noting that the DOJ’s filing concedes Dominion is aware of this threat and “does not concede the propriety” of any review or revocation of the permits.
I don’t believe this alone would kill Coastal Virginia given the project is so far along in construction. But I expect a death by a thousand cuts strategy from the Trump team against renewable energy projects writ large, regardless of who wins these cases.