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A conversation with Colorado's junior senator on the 2024 election, permitting reform, and what might happen with the IRA.
This week we’re talking to Senator John Hickenlooper of Colorado who joined me yesterday at Heatmap’s Election Post-Game event in Washington, D.C., for a spirited chat about the 2024 election, permitting, and support for renewable energy in a Trump 2.0 era. We also talked about beer and The Fray, but we’ll spare you those details. The following is an abridged version of our conversation.
So you’ve said in your time in the Senate there needs to be a “business plan” for climate change. What’s the business plan now that Trump is going to be president again?
I said from the moment I got to Washington that I could not understand how we got so far down the road without any kind of plan. No one has mapped it out – and at this point it has to change – but there’s no sense of a plan.
Right now we have to look at the possibility of dramatic rollbacks from a lot of legislation that got passed in 2023. The Inflation Reduction Act, the largest financial commitment to addressing climate change in the history of the world. I think the CHIPS and Science Act has a lot of stuff in it that over time is going to have dramatic benefits in terms of addressing climate. Rolling back those efforts for the simple purpose of giving another tax break to the publicly traded stocks of America doesn’t seem constructive.
One thing that’ll make that difficult is many of the people who worked so hard to elect Donald Trump are receiving those benefits and those jobs. A lot of those tax credits are being spent in red states.
Faced with that rollback, which I think is really an interruption and which slows down the momentum – you want to disrupt the business plan, you want to throw a wrench in the gears, one way to do that is to create unpredictability. That anything agreed to [isn’t] going to stay the same for more than two years.
I’ve heard the argument a lot before, the past few years, that a lot of the money being spent is going to red states. Why was that not an election winning argument in these states?
My impression is people basically felt that the elites – Democrats and Republican elites – are looking down on them. They’re being judged by a woke culture. They’re being bossed around. Well over 2/3rds of the people who start business aren’t doing it to make a lot of money. They’re doing it because they can’t stand having a boss. They’re doing it because they want to be in control of their lives, their job, their work, their hours, their mission. And we Democrats did a piss poor disappointing job of communicating that way.
There’s a whole bunch of reasons why this happened like it did. Hearing the war stories the past couple of days, the kinds of ads that were used as a way of taking down Democrats were pretty outrageous.
What’s to come with permitting reform?
I think we’re seeing an alignment of self interest around permitting reform. Most of the large environmental organizations recognize that if we’re going to successfully address climate change, we’ve got to get transmission lines – you can’t spend 20 years permitting transmission lines. We’ve got to go faster. The time, sense of urgency we have, is not really sufficient. The same thing is true about critical minerals. We’re going to need so much of them and we haven’t really identified where they’re going to come from.
The bill that’s sitting there right now, I think we can get that passed. I’m not saying we’re going to. But I’m saying we have a very good chance of Republicans and Democrats lining up and saying, alright I don’t like a lot of this, but we need it.
So you think the first place people are going to go is the Manchin-Barrasso bill?
Yeah I think in the short-term I think that’s where they’re going to give their best shot.
Both sides have certain parts of that bill they are really unhappy with, and they modified certain parts of it, so [we’ll] come back from recess and everyone’ll [be] taking a fresh look at it and say well I still don’t like this but it’s not as bad as it was before.
There’s some worry in some corners of climate advocacy spaces that they’ll have less of an ear from members of Congress in light of the election results. In listening to more progressive environmentalists who’ve been critical of the bill, is listening to them a politically smart idea? Practically smart idea?
I don’t think it’s a smart idea politically or practically because I do feel this sense of urgency that we’ve got to go now.
With the Barrasso-Manchin bill, we’re still going to have to do all this work. We’re just going to do it in six months or a year or two years down the road and it takes us further and further away from dealing with the issue. The costs are asymptotic.
What climate gains will be made this Congress aside from permitting reform?
I think this great transition’s going to continue. It might slow down a little bit.
There is genuine factual basis that this transition makes sense on so many levels. Politically, it’s not something you want to talk about. But we as a country have to move in that direction. Maybe talk a little less, do a little more? I heard that advice in the musical Hamilton – talk less, smile more. We have to do the opposite, do more and smile less.
What do you mean by the transition being something you don’t want to talk about?
As you’re describing the cost of waiting for people, they can get into the nits and gnats where they can go back to who they represent and say hey, there’s a problem. The same thing happens when we talk about it. Try to talk about the issues in the broadest, most fundamental ways, because that’s the hardest way for it to be attacked. Just having the broad statement is going to be more effective with a large group of people.
So I asked if progress will be made on climate in Congress besides permitting and you didn’t say yes…
No, I’ll say yes. The great thing about the Inflation Reduction Act is that it put a lot of things in play. Carbon capture, there’s a bunch of research projects and a couple of implementations in red states where they are making great progress in terms of how they can get carbon out of the air in an increasingly cost-effective way. I haven’t seen it make any kind of economic sense, but that doesn’t mean they aren’t going to get there. Hydrogen is a huge thing. Looking at some of the new nuclear reactors, where they’re looking at types of fusion reactors, small and large. Climate change is not going to allow us to go and pick out our favorite treats.
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A conversation with Carl Fleming of McDermott Will & Emery
This week we’re talking to Carl Fleming, a renewables attorney with McDermott Will & Emery who was an advisor to Commerce Secretary Gina Raimondo under the Biden administration. We chatted the morning after the Trump administration attempted to freeze large swathes of federal spending. My goal? To understand whether this chaos and uncertainty was trickling down into the transition as we spoke. But Fleming had a sober perspective and an important piece of wisdom: stay calm and remain on course.
The following conversation has been lightly edited for clarity.
How are you seeing the private sector respond to all of this news?
My view is, you can read a lot into what people publish in the EOs and what’s written and what’s issued and you can sometimes read a good deal into what hasn’t been issued and what hasn’t been said. In the executive orders that got first issued in a flurry we saw a few that got pointed directly at onshore wind, some on offshore wind, but solar and standalone storage – as predicted – remained pretty much intact.
We were under the impression and we stood by it that we had the guidance in hand, bankable guidance, from the IRS prior to the change in administration and prior to any look-back window that people had been transacting on over the past year at kind of a record pace. Standalone storage has just had a breakout year. Solar continues to go, to continue to be put on the grid. And we also have manufacturing of solar panels, the domestic supply chain. This year we stood up is nowhere near what we need to fulfill our requirements to get everything we need to do domestically to fill our generation requirements [but] its a pretty great step in the right direction. And those credits have been pretty good to the economy and Republican states.
The way I’ve seen people react is, I’ve probably been busier than ever the past two weeks, not only fielding questions like that but also for tax credit transfers, all of the corporates we work with. We work in both the buy and the sell side of all these credit transfers. We’re working with a lot of solar module manufacturers to sell the credits under the IRA. We’re working with a lot of buyers to purchase those credits. And we’re working with the buyers and sellers under the generation of these projects.
All of the buyers have come out and continued with their 2025 strategy to buy more of these credits, if not more so. And all of the developers we represent continue to produce more of these credits. So I haven’t seen a hiccup or slowdown in actual transactions. If anything, I’ve seen stuff pick up in the solar space and in the manufacturing space. I continue to be very optimistic about those two fundamental parts of the energy transition, because if you need to go be an energy superpower, you wouldn’t want to turn off solar, turn off storage –
Is that argument that if you were trying to deal with “energy security,” you wouldn’t turn off solar and storage – is that enough to assuage uncertainty in the investor space?
I think it’s helpful. If you’re a private equity investor or you’re any sort of lender or a developer, you’re probably not going to base your whole model on the hopes that our energy security strategy syncs up with what most people think it should look like. But when you layer it on top of some of the fundamentals… I want to say that solar did not go away eight years ago. When Trump first came in, we saw more renewables deployed in his administration. At times, we saw more beneficial guidance, issuance of tax guidance under that administration, than we would hope for from some more favorable administrations.
The fact that the IRA has disproportionately benefited red states is just a fact that can’t be overlooked. I met with a group of about two dozen lawmakers a few weeks ago to talk about the IRA and there’s quite a few of those folks in the room that say, “Whatever we do, we can’t dismantle the IRA.”
But how has the chaos in the last week and a half impacted investment in renewable energy, though?
I think the renewable energy industry is used to a lack of predictability. It’s kind of a lawyer’s job, our team’s job, to help folks mitigate risk [and] to see what potential pitfalls there may be and to structure and draft around those.
You might see as things get more unpredictable, as folks go out to investors to raise capital, you might see a little bit of tightening around different portfolios or different types of companies based on their pipelines or how they’re put together. But I think one investor’s look on a project or pipeline may vary widely from another investor who’s got a different project or pipeline. There’s a lot of capital out there to be deployed. I think people are looking to invest.
I think you just need to partner the right developers with the right investors.
Are you seeing any slowdown in solar investment though?
I don’t see folks taking a hardline approach or stopping any time soon.
This is not an existential crisis while the ITC [investment tax credit] and PTC [production tax credit] exist. It’s not even, could you go back in time to unwind these credits. It’s moreso, going forward, what will the IRA look like? Will there be additional technologies added to the IRA? That’s possible to help stand up other technologies. Will the runway for the credit, instead of it being unlimited for at least 10 years, will [it] be pared back a bit? There’s potential, but it’s unlikely.
Okay last question and it’s a fun one: what was the last song you listened to?
I’m not going to lie, I’m an Eagles fan. And I’m from Philly and a huge Meek Mill fan. So “Uptown Vibes” by Meek Mill is in the car.
1. Freeze, don’t move – The Trump administration this week attempted to freeze essentially all discretionary grant programs in the federal government. A list we obtained showed this would halt major energy programs and somehow also involve targeting work on IRA tax credits.
2. Sorry, California – The Bureau of Ocean Energy Management canceled public meetings on the environmental impact statement for offshore wind lease areas in California, indicating the Trump wind lease pause will also affect pre-approval activities.
3. Idaho we go – Idaho Gov. Brad Little this week signed an executive order dubbed the SPEED Act aimed at expediting all energy projects, including potentially renewables, transmission, and mining projects.
And more of the week’s top news in renewable energy fights.
1. Atlantic County, New Jersey – The Atlantic Shores offshore wind project is on deathwatch.
2. Waldo County, Maine – The Sears Island saga is moving to the state legislature, as a cadre of lawmakers push to block construction of a floating offshore wind turbine construction facility there before Trump leaves office.
3. San Luis Obispo County, California – The Moss Landing battery fire has sparked a new push for the state to slow approvals for BESS development. Unlike Sears Island, the push is being led by a Democratic lawmaker who has supported rapid climate action.
4. Greene County, New York – A solar farm fight is testing whether the state of New York’s climate law can be used to override local opposition to renewables projects.
5. Fairfield County, Ohio – The Ohio Public Siting Board held a hearing on Tuesday to consider the environmental certificate for EDF Renewables’ Eastern Cottontail solar project.
6. Multnomah County, Oregon – A transmission line proposal known as the Harborton Reliability Project is facing hurdles in the city of Portland, where city planners are recommending the city reject plans to cut down forest to build it.
Here’s what else we’re watching ...
In Idaho, Ada County is drafting up a new restrictive ordinance related to renewables on farmland.
In Virginia, a Savion solar project in Nelson County is facing an uphill climb for local approvals.