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Q&A

An America First Strategy for Renewable Energy?

A conversation with Tim Brightbill of Wiley Rein LLP

Tim Brightbill of Wiley Rein LLP.
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Today we’re talking with Tim Brightbill, a trade attorney at Wiley Rein LLP and lead counsel for a coalition of U.S. solar cell and module manufacturers – the American Alliance for Solar Manufacturing Trade Committee. Last week, his client won a massive victory – fresh tariffs on south Asian solar panel parts – on the premise that Chinese firms are dumping cheap products in the region to drive down prices and hurt American companies. It’s the latest in a long series of decadal trade actions against solar parts with Chinese origin.

We wanted to talk to Tim about how this move could affect developers, if an America-first strategy could help insulate solar from political opposition, and how this could play out in next year’s talks over the future of the IRA. The following conversation was lightly edited for clarity.

If you were talking to a developer, what would you tell them should be their takeaway?

I think the takeaway is that these determinations appear to go a long way toward addressing the unfair trade that’s been present in solar panels, solar cells, for more than a decade. And I think these duties do send a signal that will help build up domestic manufacturing. We’ve seen historic investment next to the Inflation Reduction Act in U.S. solar manufacturing facilities – in places like Georgia with QCells, in Ohio for First Solar – and we’re at a critically important point here.

Those investments were being undercut by this unfair trade by these Chinese-owned companies. We think now hopefully that will be addressed and that should lead to a bright future for solar deployment, the growth of solar power in the United States.

How does the pursuit of a fairer trade landscape globally in the broader sense impact support for solar energy in the U.S.? I hear often that a “made without China” approach can shore up support for renewables. Do you find that to be the case?

Definitely, I find that to be the case.

The U.S. industry invented solar technology and perfected it. And then unfortunately, it was virtually wiped out due to the unfair trade practices of China and these Chinese-owned companies. If we want to have solar and not be dependent on other countries for renewable energy needs, the best way to do that is to have a strong manufacturing base and a strong supply chain.

What do you think the direction of this is going to be under the next administration? Even more ratcheting up of trade measures?

Well the trade laws are a calculation, right? They’re based on rules, they’re not political. I don’t expect this administration to necessarily change individual trade cases. But I do think trade policy will change in a way that tries to address these Chinese-owned companies that undercut the rest of the world.

For example, the IRA provides right now potential benefits for any company that sets up shop here, even if they are owned by a foreign entity of concern. That seems like something this administration is going to address. If you’re going to receive IRA money, you should not be affiliated with a foreign entity of concern.

Given the potential for an impact on pricing, combined with the impacts on limiting the tax credits in that way – wouldn’t that make it harder to build projects in the U.S. short term?

I don’t think so. The solar panels themselves are not anywhere close to the majority of the cost of a project. There are so many other things that impact project cost, from permitting to the land. I don’t think this will impact the costs of deployment of solar. It will just give us a more secure supply chain that is either here in the United States or at least more regional in nature, which is going to be better for the industry.

With foreign entities of concern – are you referring to 45X? You’re anticipating that tax credit will change with respect to the IRA?

I expect the Trump administration will focus on that. There are already other related products under IRA where “foreign entity of concern” participation is not allowed for those tax credits. So it seems like a ready fix to ensure that is the same for solar technologies.

Is that bad news, or is that saving the credit?

I don’t think it’s bad news. I think it’s good news. It means more of the credit will be available to U.S. companies and our allies who might want to set up here as well.

If Chinese companies want to come here and set up in the United States, that’s great, but they shouldn’t also receive subsidies because those are the same companies that have harmed our industry with unfair trade for more than a decade.

Okay enough serious talk. Can I ask you a fun question: what was the last band you listened to?

It’s sort of dad rock-ish right now: Spoon. When I get my Spotify Wrapped, it’s going to be Spoon. That’s my favorite rock band right now.

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Hotspots

Tough Times for Renewable Energy Projects

A look at the week’s biggest fights over wind and solar farms.

Map of renewable energy fights.
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1. McIntosh County, Oklahoma – Say goodbye to the Canadian River wind project, we hardly knew thee.

  • The TransAlta utility-scale wind facility was canceled mere days after we were first to report on the uprising in favor of a ban on new renewables in the state.
  • Local residents had banded together against the project due to its close proximity to Lake Eufaula, a large reservoir. Opposition included representatives of the native Muscogee Tribe.
  • TransAlta confirmed the project was dead in a statement to me last week after state politicians were first to declare its demise. On Monday, the company provided a statement in lieu of making someone available to speak with me: “The unfortunate decision to terminate the project was due to two primary reasons – challenges with land acquisition as well as ongoing uncertainty regarding grid interconnection.”

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How to Find Consensus to Build More Transmission

A conversation with Cici Vu and Morgan Putnam of DNV Energy Systems

Cici Vu and Morgan Putnam
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Today we’re speaking with Cici Vu and Morgan Putnam from DNV Energy Systems, who helped craft a must-read report out this week on community relations in transmission with Americans for Clean Energy Grid (ACEG). Their report compiles findings of a roundtable with environmentalists, Indigenous rights activists, developers, and individual land owners, and finds transmission can fare better than solar and wind in this current political climate – and that community benefit agreements can be helpful for getting projects across the finish line. But some issues divided the roundtable, including how to structure labor benefits to ensure lots of people get job opportunities from transmission.

The following is a lightly edited and abridged version of our conversation:

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Hearings Galore, Youngkin’s Slow Bore

This week’s top news around renewable energy policy.

Glenn Youngkin and solar farms.
Heatmap Illustration / Getty Images

1. Youngkin sides with locals – Virginia Gov. Glenn Youngkin this week said at his State of the State address that he would oppose efforts to “end local control of solar project siting” – indicating he will fiercely challenge efforts by some state policymakers to resolve challenges posed by town and county restrictions on renewables by overriding them.

  • “Local communities must be able to exercise their rights with regards to land use,” Youngkin said, adding a comparison that tied solar’s growth to the data center boom in the state. “Different communities will make different decisions on data centers but these must be their decisions.”
  • As we previously explained, solar developers are seeking changes to state policy in order to overrule local restrictions and draft recommendations from a Virginia commission on electricity called for the creation of an independent body to adjudicate these objections.

2. More like Hearing Watch – We’re starting to learn how Trump’s most significant nominees may run federal energy and climate agencies. Thank you, senatorial advise and consent process!

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