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A conversation with Stephanie Loucas, chief development officer for Renewable Properties

This week I got the chance to speak with Stephanie Loucas of Renewable Properties, one of the fantastic subject matter experts who joined me this week for a panel on local renewables conflicts at Intersolar. After revealing herself to me as someone in the development space who clearly cares about community engagement, I asked if I could bring her on the record to chat about her approach to getting buy-in on projects. She’s not someone who often works in utility scale – all her projects are under 10 megawatts – but the conflicts she deals with are the same.
Here’s an edited version of our chat outside the conference as we overlooked the San Diego bay:
I guess to start, what’s the approach you’d like to see the renewables development sector adopt when it comes to community engagement?
I would like to see developers collaborate a little bit more so messaging is similar and we can have more engagement sooner. I don’t think that some of this is some sort of secret sauce. We could be a little bit more together.
Okay, but what’s your approach?
Our approach is early and often, listen empathetically and try to answer the questions clearly and try to build trust.”
If there is no secret sauce, what’s the best way to build trust?
I think the best way to build trust is to listen, to address the issues, to understand what the community is really asking. I think it’s easy for a person to sit behind a computer and write a long letter or email with 25 concerns but actually talking to the person, which is something that I think the younger people in the industry – more junior folks – aren’t as accustomed to talking to people. They’re more used to communicating in written form.
You’re able to suss out what’s actually important by talking to them. They’ll hit their one-to-five most important topics, as opposed to the 25 things they’ll write in their letter.
What does ‘early and often’ look like for you?
Early is… as soon as you talk to the authority with jurisdiction, talk to them about who in the community is actually important. Who should we be talking to? Do you think we’ll have opposition? Do you think we’ll have supporters? And it’s getting the planning department’s perspective. Then you start from there, to build who you’re going to be talking to and when.
Okay. So what’s often then? Do you have to be there every day? Is it about having an office in the community?
I think it depends on the comments you get and what’s going on specifically in the community. Sometimes you have to be in it for a while to really root out what’s going on. It might feel like you’re starting to talk for a year, a certain amount of time before you submit your permit, but you don’t get to the root cause of what’s really bugging people until you’ve had more conversations and they’re trusting you’ll show back up. Answer those questions.
Let’s say you provided a report from a third party consultant addressing “X” and then they bring up “Y.” Then you address “Y” and they bring up another thing. It’s about listening and responding. That’s how you build trust.
So I’m often told I tell too many negative stories of conflict in this newsletter. Do you have any examples in your work where you really feel like you got community buy-in?
To be honest, one of the best is a recent case study. It’s a project coming online in New York where we were in the community for a long time, a lot of public meetings and there was a ton of opposition. Part of the opposition was confusing our project size. There was a huge project – a several hundred megawatt project – going on too. They kept using the same opposition talking points. And we said, we’re not that. We heard the community and talked them through it. We wanted to make sure they were evaluating the project for the appropriate level of impact it was having.
We had opposition and we overcame it in that town. And then really flipping the mayor, having him come around. We did a ribbon cutting ceremony. We made sure we had the right number of local people benefiting from a community solar program – we ended up with a 20% number [of local subscribers].
Does having local use of power – using power from the solar project near their backyard – help with getting buy in?
Absolutely. I think so. The electrons aren’t just in their viewpoint getting on the grid and they’re never knowing where they’re going.
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Things in Sulphur Springs are getting weird.
Texas Attorney General Ken Paxton is trying to pressure a company into breaking a legal agreement for land conservation so a giant data center can be built on the property.
The Lone Star town of Sulphur Springs really wants to welcome data center developer MSB Global, striking a deal this year to bring several data centers with on-site power to the community. The influx of money to the community would be massive: the town would get at least $100 million in annual tax revenue, nearly three times its annual budget. Except there’s a big problem: The project site is on land gifted by a former coal mining company to Sulphur Springs expressly on the condition that it not be used for future energy generation. Part of the reason for this was that the lands were contaminated as a former mine site, and it was expected this property would turn into something like a housing development or public works project.
The mining company, Luminant, went bankrupt, resurfaced as a diversified energy company, and was acquired by power giant Vistra, which is refusing to budge on the terms of the land agreement. After sitting on Luminant’s land for years expecting it to be used for its intended purposes, the data center project’s sudden arrival appears to have really bothered Vistra, and with construction already underway, the company has gone as far as to send the town and the company a cease and desist.
This led Sulphur Springs to sue Vistra. According to a bevy of legal documents posted online by Jamie Mitchell, an activist fighting the data center, Sulphur Springs alleges that the terms of the agreement are void “for public policy,” claiming that land restrictions interfering with a municipality’s ability to provide “essential services” are invalid under prior court precedent in Texas. The lawsuit also claims that by holding the land for its own use, Vistra is violating state antitrust law by creating an “energy monopoly.” The energy company filed its own counterclaims, explicitly saying in a filing that Sulphur Springs was part of crafting this agreement and that “a deal is a deal.”
That’s where things get weird, because now Texas is investigating Luminant over the “energy monopoly” claim raised by the town. It’s hard not to see this as a pressure tactic to get the data center constructed.
In an amicus brief filed to the state court and posted online, Paxton’s office backs up the town’s claim that the land agreement against energy development violates the state’s antitrust law, the Texas Free Enterprise and Antitrust Act, contesting that the “at-issue restriction appears to be perpetual” and therefore illegally anti-competitive. The brief also urges the court not to dismiss the case before the state completes its investigation, which will undoubtedly lead to the release of numerous internal corporate documents.
“Sulphur Springs has alleged a pattern of restricting land with the potential for energy generation, with the effect of harming competition for energy generation generally, which would necessarily have the impact of increasing costs for both Sulphur Springs and Texas consumers generally,” the filing states. “Evaluating the competitive effects of Luminant’s deed restrictions as well as the harm to Texans generally is a fact-intensive matter that will require extensive discovery.”
The Texas attorney general’s office did not respond to multiple requests for comment on the matter. It’s worth noting that Paxton has officially entered the Republican Senate primary, challenging sitting U.S. Senator John Cornyn. Contrary to his position in this case, Paxton has positioned himself as a Big Tech antagonist and fought the state public utilities commission in pursuit of releasing data on the crypto mining industry’s energy use.
A solar developer gets into a forest fight in California, and more of the week’s top conflicts around renewables.
1. Sacramento County, California – A solar project has become a national symbol of the conflicts over large-scale renewables development in forested areas.
2. Sedgwick County, Kansas – I am eyeing this county to see whether a fight over a solar farm turns into a full-blown ban on future projects.
3. Montezuma County, Colorado – One southwest Colorado county is loosening restrictions on solar farms.
4. Putnam County, Indiana – An uproar over solar projects is now leading this county to say no to everything, indefinitely.
5. Kalamazoo County, Michigan – I’m eyeing yet another potential legal challenge against Michigan’s permitting reform efforts.
A conversation with Renee Grabe of Nature Forward
This week’s conversation is with Renee Grabe, a conservation advocate for the environmental group Nature Forward who is focused intently on data center development in Northern Virginia. I reached out to her for a fresh perspective on where data centers and renewable energy development fits in the Commonwealth amidst heightened frustration over land use and agricultural impacts, especially after this past election cycle. I thought her views on policy-making here were refreshingly nuanced.
This transcript was lightly edited for clarity.
Tell me more about how you started focusing on data centers.
So, in Fairfax County, in 2020 or 2021, people were pursuing the construction of an indoor ski facility on a landfill. From a climate perspective, to build something that would need to be cooled 24/7 for indoor skiing seemed like a very bad proposal in terms of energy usage. And for what kind of gain?
Then our friends at the Sierra Club were saying, indoor ski slopes? Bad, yes. But data centers? Way, way worse. Those aren’t cooling to support snow but are cooling much larger areas on a much larger scale, dwarfing the area of that one ski slope. This was around the time the Prince William Digital Gateway was showing up – they were saying all these acres of agricultural lands and single-family housing zones were about to be rezoned. This was a big deal, and Sierra Club led the way in opening our eyes to this. The rezoning ultimately passed. The data centers were sued and the people who filed the lawsuit won, but pre-planning for the centers is still allowed to take place.
The way we think about the impacts of data centers, besides the loss of natural lands and the amount of energy that’s going to be needed to power these things, has been diesel generators. These are the things that are backup generation and the camel’s nose under the tent is trying to get them to be primary power.
Now I want to ask you a provocative question: is there any middle ground between letting these projects be built unfettered and outright bans on their development?
We have no regulation today. From our standpoint, these things are coming, they’re here. We know a lot more now than we did in 2022. As we make decisions about how and where to build these facilities we all need – I mean we’re using one right now. I use a data center all day at work. Teams conferencing. ChatGPT to answer a question. We need these. So if we’re going to build them, let’s not give a pass to some of the world’s largest and richest companies. Let’s ask them to put the guardrails on to protect our residences and our infrastructure to make sure they’re as sustainable as possible.
Okay, so what are the guardrails then?
The costs of what was going to go into a data center need to be more transparent. We need to bring accountability to the forefront right away as they’re being built.
In Ohio, they passed a law requiring data center companies to pay for a high percentage of the power they’re using. That cut a significant number of the projects in Ohio. This industry is so speculative and a land grab and a rush to be first to get the most.
You have this dichotomy of land values for residences being inundated, while land values for developers are skyrocketing. We have an affordability crisis going on and we are all on the hook for paying for the infrastructure to power these things.
So when you think about what regulation might make data center development more reasonable, it’s asking for the costs happening to be borne by the industry making them. Let’s get rid of some of the incentives for power users. We don’t need to be encouraging the loss of state revenue, either – we’re leaving money on the table to bring these facilities here.
Lastly, our readers love to get hyperlocal. I know you’re intently focused on Fairfax County right now which has been a big part of the data center boom in Virginia – what’s happening there?
There are a couple things that have happened over the course of this past year. Fairfax County passed a data center zoning ordinance amendment – minimum requirements a data center will have to adhere to. The big thing with that one is, you have to have a special exception if you build within a mile of a Metro station. When you think about good land use and building a data center within a walkable distance of a Metro, that’s eye-openingly poor land use policy and a missed opportunity for transit-oriented development. It doesn’t mean they can’t be built near one but you have to get a special exception.
Some things can’t be regulated at the local level. Like generators. That’s in the hands of the state.
Last night, we had a public hearing at the Fairfax County board level for our policy plan – our comprehensive plan providing guidance for developers who want to get a special exception or rezoning. It is not law. It is not required. It is a visionary document that helps us get to better. They’ve added a section for data centers in that. In May, staff put forward something pretty good, making sure data centers met a minimum level of efficiency. But our chairman of the county board said it went above and beyond our zoning ordinance and said he didn’t think it was appropriate, so staff rewrote that section and stripped out a lot of the specificity and higher standards that were in that document.
At the hearing, they deferred a decision, listening to the public but not having a discussion at the board level. They’ve left the record open through December 9th.