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Twenty-six House Republicans may have just put big green targets on their own backs.
Last month, the House passed a bill that would have raised the debt ceiling while also repealing most of the tax credits for clean energy projects enacted in last year’s Inflation Reduction Act. That provision was a poison pill for President Biden and congressional Democrats, and was jettisoned in the final deal between the White House and Congress to lift the debt limit.
But it also opened up a number of Republicans to political attacks for voting to jeopardize green jobs in their own districts. It’s a sign of just how far climate politics have shifted, in part due to the political strategy underlying Green Bidenomics.
This is a new dynamic. Back in 2009, House Democrats spent months laboring over major climate legislation. They ultimately narrowly passed the American Clean Energy and Security Act (also known as “Waxman-Markey”), a cap-and-trade program to curb greenhouse gas emissions. But despite a Democratic supermajority in the Senate, the bill was dead-on-arrival in the upper chamber, which never even took it up for a vote.
The House vote became a massive political albatross for Democrats in the 2010 midterm election — vulnerable members had “walk[ed] the plank,” as former Rep. Tom Periello put it. Republicans wielded Waxman-Markey as a cudgel, branding the shelved climate plan a “cap-and-tax” job killer — a lethal hit in an extremely weak post-Great Recession economy. Ultimately, more than two dozen Democrats who voted in favor of the cap-and-trade bill were wiped out that November as Republicans took back the House.
Badly burned, Democrats shifted course when they next had the opportunity to craft climate legislation. Where Waxman-Markey aimed to fight climate change by penalizing emissions, Biden’s Inflation Reduction Act does so by subsidizing renewables. It largely steered clear of carbon taxes, instead centering gigantic subsidy carrots that “crowd in” private sector investment for clean energy development.
The IRA also embraced green industrial strategy, ensuring that as much of the clean energy supply chain as possible is produced at home — battery manufacturers, EV plants, and the like. That has drastically shifted the politics: while traditional cap-and-trade emissions reductions plans were tarred as job killers, green Bidenomics is a clear job creator. Since the IRA was enacted, clean energy companies have already added 100,000 new jobs. Another 46 new clean energy manufacturing facilities have been announced, creating upwards of 18,000 anticipated jobs. Those numbers will only grow over the coming years.
Aligning that kind of economic muscle with the climate change fight has made the IRA politically resilient. It has left even right-wing agitators like Representative Marjorie Taylor Greene – in whose district the solar company QCells is investing $2.5 billion to create 2,500 jobs – tying themselves in knots to simultaneously cheer new in-district investment while voicing opposition to the federal incentives behind it.
It’s also why Republicans backed down during debt ceiling negotiations and let the clean energy tax credits survive. But not before the far-right House Freedom Caucus forced all of them to take a toxic vote against green jobs. As CNN reported, “More than two dozen House Republicans who recently welcomed multi-million-dollar clean energy manufacturing investments in their districts voted … to repeal the tax incentives that stimulated those very same projects.”
That could come back to haunt some of those Republicans, especially the frontline “majority makers” who won seats in districts that Biden carried. For instance, freshman Representative Marc Molinaro in New York’s 19th congressional district eked out a 2-point win in a district that Biden carried by nearly 5 points. Molinaro voted for the repeal bill even though the IRA is bringing a new long-duration battery plant from Zinc8 Energy Solutions — and 500 jobs for his constituents — to his district.
Molinaro is already feeling the heat from that vote. He’s facing a potential rematch against his 2022 opponent, Democrat Josh Riley. And in an op-ed, Riley called Molinaro’s vote a “gut punch to folks who have experienced the ups-and-downs in our local economy.” Under the IRA, Riley said, upstate New York could grow into a “Valley of Opportunity where folks can earn a place in the Middle Class manufacturing the things we need to save the planet.” Yet their own member of Congress cast a vote to quash that growth: “[I]nstead of supporting those investments,” Riley wrote, “Molinaro called them a ‘bad idea,’ and he derided them as ‘reckless spending.’”
More Republicans could find themselves on the hot seat. Others who won close races or represent Biden-voting districts — like Lauren Boebert of Colorado (whose district will be home to “the world’s largest manufacturing plant for wind turbine towers”) and Juan Ciscomani of Arizona — could soon hear from opponents and voters about why they tried to undermine investments in their communities.
It’s never good politics to cast a vote that might take jobs away from your constituents. Fairly or not, that was the hit on Democrats who tried to take climate action in 2009. But the shoe is on the other foot now, and the political albatross is around those who flirted with undoing the biggest climate law the United States has ever passed. Green Bidenomics is good political economy, and it’s rapidly shifting the terms of debate in America.
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The Loan Programs Office is good for more than just nuclear funding.
That China has a whip hand over the rare earths mining and refining industry is one of the few things Washington can agree on.
That’s why Alex Jacquez, who worked on industrial policy for Joe Biden’s National Economic Council, found it “astounding”when he read in the Washington Post this week that the White House was trying to figure out on the fly what to do about China restricting exports of rare earth metals in response to President Trump’s massive tariffs on the country’s imports.
Rare earth metals have a wide variety of applications, including for magnets in medical technology, defense, and energy productssuch as wind turbines and electric motors.
Jacquez told me there has been “years of work, including by the first Trump administration, that has pointed to this exact case as the worst-case scenario that could happen in an escalation with China.” It stands to reason, then, that experienced policymakers in the Trump administration might have been mindful of forestalling this when developing their tariff plan. But apparently not.
“The lines of attack here are numerous,” Jacquez said. “The fact that the National Economic Council and others are apparently just thinking about this for the first time is pretty shocking.”
And that’s not the only thing the Trump administration is doing that could hamper American access to rare earths and critical minerals.
Though China still effectively controls the global pipeline for most critical minerals (a broader category that includes rare earths as well as more commonly known metals and minerals such as lithium and cobalt), the U.S. has been at work for at least the past five years developing its own domestic supply chain. Much of that work has fallen to the Department of Energy, whose Loan Programs Office has funded mining and processing facilities, and whose Office of Manufacturing and Energy Supply Chains hasfunded and overseen demonstration projects for rare earths and critical minerals mining and refining.
The LPO is in line for dramatic cuts, as Heatmap has reported. So, too, are other departments working on rare earths, including the Office of Manufacturing and Energy Supply Chains. In its zeal to slash the federal government, the Trump administration may have to start from scratch in its efforts to build up a rare earths supply chain.
The Department of Energy did not reply to a request for comment.
This vulnerability to China has been well known in Washington for years, including by the first Trump administration.
“Our dependence on one country, the People's Republic of China (China), for multiple critical minerals is particularly concerning,” then-President Trump said in a 2020 executive order declaring a “national emergency” to deal with “our Nation's undue reliance on critical minerals.” At around the same time, the Loan Programs Office issued guidance “stating a preference for projects related to critical mineral” for applicants for the office’s funding, noting that “80 percent of its rare earth elements directly from China.” Using the Defense Production Act, the Trump administration also issued a grant to the company operating America's sole rare earth mine, MP Materials, to help fund a processing facility at the site of its California mine.
The Biden administration’s work on rare earths and critical minerals was almost entirely consistent with its predecessor’s, just at a greater scale and more focused on energy. About a month after taking office, President Bidenissued an executive order calling for, among other things, a Defense Department report “identifying risks in the supply chain for critical minerals and other identified strategic materials, including rare earth elements.”
Then as part of the Inflation Reduction Act in 2022, the Biden administration increased funding for LPO, which supported a number of critical minerals projects. It also funneled more money into MP Materials — including a $35 million contract from the Department of Defense in 2022 for the California project. In 2024, it awarded the company a competitive tax credit worth $58.5 million to help finance construction of its neodymium-iron-boron magnet factory in Texas. That facilitybegan commercial operation earlier this year.
The finished magnets will be bought by General Motors for its electric vehicles. But even operating at full capacity, it won’t be able to do much to replace China’s production. The MP Metals facility is projected to produce 1,000 tons of the magnets per year.China produced 138,000 tons of NdFeB magnets in 2018.
The Trump administration is not averse to direct financial support for mining and minerals projects, but they seem to want to do it a different way. Secretary of the Interior Doug Burgum has proposed using a sovereign wealth fund to invest in critical mineral mines. There is one big problem with that plan, however: the U.S. doesn’t have one (for the moment, at least).
“LPO can invest in mining projects now,” Jacquez told me. “Cutting 60% of their staff and the experts who work on this is not going to give certainty to the business community if they’re looking to invest in a mine that needs some government backstop.”
And while the fate of the Inflation Reduction Act remains very much in doubt, the subsidies it provided for electric vehicles, solar, and wind, along with domestic content requirements have been a major source of demand for critical minerals mining and refining projects in the United States.
“It’s not something we’re going to solve overnight,” Jacquez said. “But in the midst of a maximalist trade with China, it is something we will have to deal with on an overnight basis, unless and until there’s some kind of de-escalation or agreement.”
A conversation with VDE Americas CEO Brian Grenko.
This week’s Q&A is about hail. Last week, we explained how and why hail storm damage in Texas may have helped galvanize opposition to renewable energy there. So I decided to reach out to Brian Grenko, CEO of renewables engineering advisory firm VDE Americas, to talk about how developers can make sure their projects are not only resistant to hail but also prevent that sort of pushback.
The following conversation has been lightly edited for clarity.
Hiya Brian. So why’d you get into the hail issue?
Obviously solar panels are made with glass that can allow the sunlight to come through. People have to remember that when you install a project, you’re financing it for 35 to 40 years. While the odds of you getting significant hail in California or Arizona are low, it happens a lot throughout the country. And if you think about some of these large projects, they may be in the middle of nowhere, but they are taking hundreds if not thousands of acres of land in some cases. So the chances of them encountering large hail over that lifespan is pretty significant.
We partnered with one of the country’s foremost experts on hail and developed a really interesting technology that can digest radar data and tell folks if they’re developing a project what the [likelihood] will be if there’s significant hail.
Solar panels can withstand one-inch hail – a golfball size – but once you get over two inches, that’s when hail starts breaking solar panels. So it’s important to understand, first and foremost, if you’re developing a project, you need to know the frequency of those events. Once you know that, you need to start thinking about how to design a system to mitigate that risk.
The government agencies that look over land use, how do they handle this particular issue? Are there regulations in place to deal with hail risk?
The regulatory aspects still to consider are about land use. There are authorities with jurisdiction at the federal, state, and local level. Usually, it starts with the local level and with a use permit – a conditional use permit. The developer goes in front of the township or the city or the county, whoever has jurisdiction of wherever the property is going to go. That’s where it gets political.
To answer your question about hail, I don’t know if any of the [authority having jurisdictions] really care about hail. There are folks out there that don’t like solar because it’s an eyesore. I respect that – I don’t agree with that, per se, but I understand and appreciate it. There’s folks with an agenda that just don’t want solar.
So okay, how can developers approach hail risk in a way that makes communities more comfortable?
The bad news is that solar panels use a lot of glass. They take up a lot of land. If you have hail dropping from the sky, that’s a risk.
The good news is that you can design a system to be resilient to that. Even in places like Texas, where you get large hail, preparing can mean the difference between a project that is destroyed and a project that isn’t. We did a case study about a project in the East Texas area called Fighting Jays that had catastrophic damage. We’re very familiar with the area, we work with a lot of clients, and we found three other projects within a five-mile radius that all had minimal damage. That simple decision [to be ready for when storms hit] can make the complete difference.
And more of the week’s big fights around renewable energy.
1. Long Island, New York – We saw the face of the resistance to the war on renewable energy in the Big Apple this week, as protestors rallied in support of offshore wind for a change.
2. Elsewhere on Long Island – The city of Glen Cove is on the verge of being the next New York City-area community with a battery storage ban, discussing this week whether to ban BESS for at least one year amid fire fears.
3. Garrett County, Maryland – Fight readers tell me they’d like to hear a piece of good news for once, so here’s this: A 300-megawatt solar project proposed by REV Solar in rural Maryland appears to be moving forward without a hitch.
4. Stark County, Ohio – The Ohio Public Siting Board rejected Samsung C&T’s Stark Solar project, citing “consistent opposition to the project from each of the local government entities and their impacted constituents.”
5. Ingham County, Michigan – GOP lawmakers in the Michigan State Capitol are advancing legislation to undo the state’s permitting primacy law, which allows developers to evade municipalities that deny projects on unreasonable grounds. It’s unlikely the legislation will become law.
6. Churchill County, Nevada – Commissioners have upheld the special use permit for the Redwood Materials battery storage project we told you about last week.