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Q&A

Will Blue States Open Up Their Wallets for Renewables?

A conversation with Heather O’Neill of Advanced Energy United.

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This week’s conversation is with Heather O’Neill, CEO of renewables advocacy group Advanced Energy United. I wanted to chat with O’Neill in light of the recent effective repeal of the Inflation Reduction Act’s clean electricity tax credits and the action at the Interior Department clamping down on development. I’m quite glad she was game to talk hot topics, including the future of wind energy and whether we’ll see blue states step into the vacuum left by the federal government.

The following conversation has been lightly edited for clarity.

During Trump 1.0 we saw blue states really step into the climate role in light of the federal government. Do you see anything similar taking place now?

I think this moment we’re in – it is a different moment.

How are we handling load growth? How are we making sure consumers are not paying for expensive stranded assets? Thinking about energy affordability? All of those challenges absolutely present a different moment and will result in a different response from state leaders.

But that’s where some of the changes our industry has gone through mean we’re able to meet that moment and provide solutions to those challenges. I think we need aggressive action from state leaders and I think we’ll see that from them, because of the challenges in front of them.

What does that look like?

Every state is different. Take Virginia for example. Five years after we passed the Virginia Clean Economy Act – a big, bold promise of action – we’re not on track. So what are the things we need to do to keep the foot on the accelerator there? This last legislative session we passed the virtual power plant legislation that’ll help tremendously in terms of grid flexibility. We made a big push around siting and permitting reform, and we didn’t quite get it over the finish line but that’s the kind of thing where we made a good foundation.

Or Texas. There’s so much advanced energy powering Texas right now. You had catastrophic grid failure in Hurricane Uri and look at what they’ve been able to build out in response to that: wind, solar, and in the last few years, battery storage, and they just passed the energy waste reduction [bill].

We need to build things and make it easier to build – siting and permitting reform – but it’s also states depending on their environment looking at and engaging with their regional transmission organization.

You saw that last week, a robust set of governors across the PJM region called on them to improve their interconnection queue. It’s about pushing and finding reforms at the market level, to get these assets online and get on the grid deployed.

I think the point about forward momentum, I definitely see what you’re saying there about the need for action. Do you see state primacy laws or pre-emption laws? Like what Michigan, New York, and California have done…

I’m not a siting expert, but the reform packages that work the best include engagement from communities in meaningful ways. But they also make sure you’re not having a vocal minority drowning out the benefits and dragging out the process forever. There are timelines and certainty attached to it while still having meaningful local engagement.

Our industry absolutely has to continue to lean into more local engagement and community engagement around the benefits of a project and what they can deliver for a community. I also think there’s a fair amount of making sure the state is creating that pathway, providing that certainty, so we can actually move forward to build out these projects.

From the federal government’s perspective, they’re cracking down on wind and solar projects while changing the tax credits. Do you see states presenting their own incentives for renewables in lieu of federal incentives? I’ve wondered if that’ll happen given inflation and affordability concerns.

No, I think we have to be really creative as an industry, and state leaders have to be creative too. If I’m a governor, affordability concerns were already front and center for me, and now given what just happened, they’re grappling with incredibly tight state budgets that are about to get tighter, including health care. They’re going to see state budgets hit really hard. And there’s energy impacts – we’re cutting off supply, so we’re going to see prices go up.

This is where governors and state leaders can act but I think in this context of tight state budgets I don’t think we can expect to see states replacing incentive packages.

It’ll be: how do we take advantage of all the flexible tools that we have to help shape and reduce demand in meaningful ways that’ll save consumers money, as well as push on building out projects and getting existing juice out of the transmission system we have today.

Is there a future for wind in the United States?

It is an incredibly challenging environment – no question – for all of our technologies, wind included. I don’t want to sugar-coat that at all.

But I look at the whole picture, and I include wind in this: the technologies have improved dramatically in the past couple of decades and the costs have come down. When you look around at what resources are around to deploy, it’s advanced energy. We’re seeing it continue to grow. There’ll be headwinds, and it’ll be more expensive for all of us. But I look at what our industry and our technologies are able to offer and deliver, and I am confident we’ll continue to see growth.

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Spotlight

How a Tiny Community Blocked Battery Storage in Over Half of Los Angeles County

Much of California’s biggest county is now off limits to energy storage.

Wildfire and battery storage.
Heatmap Illustration/Getty Images, Library of Congress

Residents of a tiny unincorporated community outside of Los Angeles have trounced a giant battery project in court — and in the process seem to have blocked energy storage projects in more than half of L.A. County, the biggest county in California.

A band of frustrated homeowners and businesses have for years aggressively fought a Hecate battery storage project proposed in Acton, California, a rural unincorporated community of about 7,000 residents, miles east of the L.A. metro area. As I wrote in my first feature for The Fight over a year ago, this effort was largely motivated by concerns about Acton as a high wildfire risk area. Residents worried that in the event of a large fire, a major battery installation would make an already difficult emergency response situation more dangerous. Acton leaders expressly opposed the project in deliberations before L.A. County planning officials, arguing that BESS facilities in general were not allowed under the existing zoning code in unincorporated areas.

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And more of the week’s top news about renewable energy conflicts.

The United States.
Heatmap Illustration/Getty Images

1. Benton County, Washington – A state permitting board has overridden Governor Bob Ferguson to limit the size of what would’ve been Washington’s largest wind project over concerns about hawks.

  • In a unanimous decision targeting Horse Heaven Wind Farm, the Energy Facility Site Evaluation Council determined that no turbines could be built within two miles of any potential nests for ferruginous hawks, a bird species considered endangered by the state. It’s unclear how many turbines at Horse Heaven will be impacted but reports indicate at least roughly 40 turbines – approximately 20% of a project with a 72,000-acre development area.
  • Concerns about bird deaths and nest disruptions have been a primary point of contention against Horse Heaven specifically, cited by the local Yakama Nation as well as raised by homeowners concerned about viewsheds. As we told you last year, these project opponents as well as Benton County are contesting the project’s previous state approval in court. In July, that battle escalated to the Washington Supreme Court, where a decision is pending on whether to let the challenge proceed to trial.

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Q&A

Trump Cuts Solar Industry’s Experiments to Win Hearts and Minds

A conversation with David Gahl of SI2

The Fight Q&A subject.
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This week I spoke with David Gahl, executive director of the Solar and Storage Industries Institute, or SI2, which is the Solar Energy Industries Association’s independent industry research arm. Usually I’d chat with Gahl about the many different studies and social science efforts they undertake to try and better understand siting conflicts in the U.S.. But SI2 reached out first this time, hoping to talk about how all of that work could be undermined by the Trump administration’s grant funding cuts tied to the government shutdown. (The Energy Department did not immediately get back to me with a request for comment for this story, citing the shutdown.)

The following conversation was edited lightly for clarity.

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