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You have to get creative when you allege a “war on energy” during an oil boom.

When Donald Trump met with a group of oil executives at Mar-a-Lago last month, his message was somewhere between “refreshingly blunt” and “blatant shakedown.” Attendees spilled to The Washington Post that Trump told the executives they should raise a billion dollars for his campaign so he could make them even richer by reducing their taxes and removing regulations on their industry.
One can’t help but wonder if any of them thought to themselves that as appealing as that kind of deal might be, there’s no reason for them to be desperate. After all, the Biden years have actually been quite good for the fossil fuel industry.
That applies to the fossil fuel industry’s political allies as well: While Republicans are appalled at the enormous sums the administration and congressional Democrats have directed to renewable energy development and other climate-focused programs, fossil fuels are doing just fine. In the immediate term, the president’s political opponents can barely find anything to complain about, which was probably key to the Biden administration’s political strategy all along.
Republican frustration was on clear display at a hearing Thursday of the House Committee on Oversight and Accountability, where GOP members went through the motions of grilling Secretary of Energy Jennifer Granholm over what they like to call “the Biden administration’s war on energy.” Their attempts to portray the administration’s throttling the production of fossil fuels were so absurd that at times Granholm seemed to struggle to keep from laughing out loud. One member was upset about the demise of incandescent light bulbs. Another said they “know a guy” who, for some reason, had to pay $8,000 to put an electric vehicle charger in his garage (the secretary was at a loss to explain that). And a third wanted to know whether the DOE is reverse-engineering technology from unidentified aerial phenomena, what we used to refer to call UFOs (the secretary didn’t give much of an answer — clearly she’s in on the conspiracy).
“Can you clarify whether the Department of Energy has been involved in any such efforts either historically or currently to analyze reverse-engineering materials from or related to UAPs?” asked Rep. Anna Paulina Luna of Florida.
“I have no knowledge of that,” Granholm replied.
“There have been documented sightings of metallic spheres over DOE facilities,” Luna continued later. “What investigations have been conducted in regards to these sightings and what conclusions do you guys have about the nature and origins of these objects?”
“I’d be happy to follow up with you on that,” Granholm replied diplomatically.
Predictable congressional buffoonery notwithstanding, this is the curious situation in which we find ourselves: On one hand, this administration has done more to advance green energy than any that came before. The 2022 Inflation Reduction Act was the most significant piece of climate legislation in history, and if the administration’s climate initiatives are successful, this could be the key turning point in America’s contribution to climate change. On the other hand, the U.S. has never exported more oil than it did last year and overtook Australia and Qatar to become the world’s leading producer of liquified natural gas. The fossil fuel industry has been booming since Joe Biden took office, and still is.
The immediate topic of the Oversight Committee hearing was the administration’s decision to pause new approvals for liquid natural gas export projects so it can complete a review of the analysis that underpins those approvals. The pause doesn’t affect existing exports or projects under construction, but it has been hailed by many climate activists as an important step in the right direction.
The administration has framed the pause in the context of its climate efforts, and the environmental impact of LNG is complicated; while burning gas creates lower emissions than burning coal or oil, the processes involved in exporting LNG — lowering the temperature of the gas until it becomes a liquid, moving it onto boats, moving the boats across the ocean, turning the liquid back into a gas — create their own emissions that make LNG not a particularly climate-friendly option.
In addition, there’s the question of environmental justice. “It is deeply disturbing to me that fossil fuel production is at a record high under the current administration,” said Rep. Rashida Tlaib at the hearing, noting the high rates of asthma and cancer in the area she grew up in and represents in Detroit. “LNG exports perpetuate, I think, systematic environmental racism,” she said, noting that the processing facilities are often sited in areas that are mostly minority and poor.
Nevertheless, the temporary pause on new approvals won’t hinder the booming LNG industry much, especially in the short run. As Granholm said, “We have exploded in our authorizations. This pause only applies to new ones coming down the pike.” The U.S. exported 88.9 million metric tons of LNG in 2023; just eight years ago exports were almost nothing.
And yet keep repeating “War on energy!” knowing that facts seldom play too much of a role in political persuasion. Polling shows that more voters trust Donald Trump on a range of questions related to energy production and prices, and the imaginary lack of fossil fuel production is such an urgent problem to solve that Trump has promised that he will be a dictator on “day one” in order to do two things: “I want to close the border, and I want to drill, drill, drill.”
It can appear to be the best of both worlds for Republicans: They get the fossil fuel production they want, and outside of a hearing room where they can be directly shot down, they can still make at least some political hay out of energy. They would probably add that while oil and gas production is up at the moment, Democrats are still hoping to phase out fossil fuels over the long run. Which is true.
Democrats have the harder political task: They want to show that they’re addressing climate change, but in a way that doesn’t cause any inconvenience or higher retail prices for gasoline. That has always been part of the green energy dream — that we could get more energy for less money, even as we’re saving the planet. In some ways that’s what’s happening as the price of renewables has continued to drop. But all it takes is a momentary spike in gasoline prices to send angry voters back into the arms of whoever promises to bring them down.
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1. Suffolk County, New York – Rarely do I get to say battery fire fears can be quelched but we have a very good example brewing in the Empire State.
2. Loudon County, Virginia – I can’t believe it: Data Center Alley is going to enact a moratorium.
3. Pulaski County, Arkansas – Entergy has dropped the lawsuit it filed against an Arkansas newspaper over the publication of a power deal with Google.
4. Darlington County, South Carolina – We conclude this week’s Hotspots with a focus on a GOP-leaning county rejecting a renewables moratorium.
A conversation with Sam Lyman of the Bitcoin Policy Institute.
This week’s conversation is with Sam Lyman, head of research at the Bitcoin Policy Institute. Originally focused on cryptocurrency, Lyman’s organization has expanded to policy and messaging development around data centers, most notably providing research many AI boosters cite to claim foreign influence is driving opposition to new hyperscale projects. Last week, the think tank released a new report calling for a novel solution to the data center permitting bottleneck: direct cash payments from data center projects to individuals involved with building them, as well as residents nearby facilities once they’re operating.
I reached out to BPI and asked for a chat with Lyman about the data center dividend proposal. I also tried to get to the bottom of where this increasingly relevant think tank stands on the general idea of a national data center law. The conversation was immensely informative. So here it is, in a lightly abridged and edited format.
Let’s start with the data center dividend proposal. Walk my readers through it.
Data center dividends came from the idea that, ideally in the AI revolution, we want all Americans to benefit. Especially rural Americans. You look at the landscape today, the majority of AI data centers are being built in rural America. It’s critical they’ll benefit from the massive wealth AI will unlock.
There’s lots of ways to make that happen. People point to the jobs AI data centers will build out, for example. But with data center dividends, we take the logic of the Alaska Permanent Fund and we apply it to America’s rural counties, which are sitting on a proverbial gold mine right now but lack any kind of public mechanism allowing them to benefit from that in a maximal way.
If you look at the tax revenue these data centers create, which is astronomical, how do we distribute this tax revenue in a way where it has the most tangible impact on the families living there? We believe data center dividends are the best way to do that – after allocating money for schools, public safety, and infrastructure, it allows these counties with tens of millions of dollars left over to distribute them as they see fit. They should distribute that money to the men and women who make those data centers happen in the first place.
The most effective form of a dividend would take a direct payment: a cash payment, a physical check, a direct deposit. Or the form of credits paying back property taxes, utility bills, an endowment for scholarships. There’s a number of different forms this can take.
Hopefully this gets the conversation going about how we can make these work for everybody.
Who do you want to see set up this dividend mechanism? How’s your approach to implementation?
The report is addressed to county commissioners. I’m thinking of commissioners who represent both sides of the political spectrum facing this huge backlash. Many of them want to do good by their communities and their voters, even if it means doing a data center, in places where it’s difficult to explain right now. Dividends make this indisputably clear.
I tried to put myself in the shoes of an enterprising county commissioner who sees the merits in the data center buildout and wants to break out of the political storm. It’s important to note data centers can be a huge economic boon for communities, in ways that can impact lives positively.
Have any communities – counties, as you noted – taken this idea up yet? Are there any models for this proposal?
The best analogue is West Feliciana, Louisiana, which is the case study we feature. West Feliciana made an agreement with a data center developer where in lieu of taxes, they make direct payments of about $90 million a year to the parish. That triples the community’s tax budget every year. It leaves ample room not only for essential services but dividends afterwards. Louisiana then passed a law – Act 434 – that allowed West Feliciana to remit some of those payments to residents as a tax credit. This bill first provided the opportunity for the parish to even remit those payments as cash, but it was changed in the legislature to make it a credit. That’s the closest we’ve gotten so far.
As far as reaching out to individual counties, we’re a think tank. We put ideas into the universe. We haven’t had anyone reach out to us since the publication of the report so far but we’re hoping they will.
Your report does lay out how there’s a bottleneck in development and this could help with easing it. Do you see an impetus to put ideas like the dividend out there right now, in light of the increased data center scrutiny in this year’s midterms?
Our publication is irrespective of the midterms. But it is tied to the fact that a bottleneck facing the data center buildout includes it becoming a politicized issue. We’re of the belief these projects shouldn't be political at all. One way to break through the noise is by showing how they can benefit those involved in construction and residents who live there. Data centers are critical infrastructure; other forms of critical infrastructure aren’t being politicized. Our efforts are to demonstrate how these shouldn’t be political.
When it comes to the future of AI data center regulation, this proposal is obviously geared towards incentivizing a resolution to the bottleneck through using resources produced from data centers – namely, new investment.
Where does your organization stand on the increased push for environmental or siting regulation on AI data centers?
I’m not familiar with what you might be referring to there.
I mean, there’s all kinds of proposals at the federal level and in states for everything from being required to pay for infrastructure upgrades to being required to use closed-loop cooling to siting restrictions, like temporary moratoria.
What I’m asking is, what else do you as an organization believe when it comes to regulating AI data center development at the federal level? State level?
We believe data centers should work for the communities where they’re being built. That’s important. So the concept of BYOP – Bring Your Own Power – we very much support that idea. We think the Ratepayer Protection Pledge is a great proposal because ultimately we want data centers, with them being critical infrastructure, to not only strengthen our national security but strengthen the communities where they’re being built.
Some states are rejecting data centers. We think that’s a mistake because it's something that’ll ultimately short-change the people who live there. For the states that do decide to build data centers, it's up to them what regulations make data centers more sustainable over time.
There’s increased public discussion for policy on AI development – as an organization, do you see any role in the federal government making policy here with a national data center law?
We think AI will be key to America’s prosperity over the long-term. We have concerns about the regulation of open-source artificial intelligence; bitcoin is a form of open-source software and open-source money. We believe intelligence should be something available to all Americans. That’s our concern with talk about regulating AI right now, it feels like a ploy for regulatory capture.
But what about national policy on AI data centers? Does your think tank support the national legislature doing a federal data center bill or is that something best for localities or states?
It depends on the bill. Are you talking about Sen. Bernie Sanders’ national moratorium?
With a permitting deal seemingly on the horizon, Republican Gabe Evans and Democrat Scott Peters may be about to see their partnership pay off.
The fate of permitting reform legislation that could smooth the way to all kinds of new and improved energy infrastructure — including transmission lines and renewables — is currently hostage to opaque discussions between Senate committee chairs. Rhode Island Senator Sheldon Whitehouse, the Democratic ranking member of the Senate Environment and Public Works Committee, told a Rhode Island business group earlier this week that “we’re actually in a pretty good place on permitting reform,” and that there was “maybe another week of negotiations.” Whitehouse’s Republican counterpart on the EPW committee, West Virginia Senator Shelly Moore-Capito, told Semafor on Friday that any bill has “got to pop out of here in the next 48 hours.”
If that’s going to happen, it will be because Republicans and Democrats have decided it’s worth it to get along. Any deal will eventually have to be voted on by the House, which has already produced several bills on a bipartisan basis, and even passed one — the SPEED Act — late last year.
Two of the busier House members on this issue are Scott Peters, a Democratic former environmental lawyer from San Diego, and Gabe Evans, a first term Colorado Republican representing a suburban and rural district north of Denver that includes wind farms and crude oil production. “The district that I represent truly is an all of the above energy district,” Evans told me.
Their latest effort is a bill aimed at smoothing out permitting for transmission development, especially interregional transmission. Last week, the two congressmen unveiled the CLEAR Act, seeking to apply a stricter set of standards for lawsuits against transmission projects that aligned with how natural gas and hydropower projects are treated under the Federal Power Act (it’s much harder to sue to stop these projects). Earlier this year, the two also sponsored the CERTAIN Act, a more comprehensive streamlining of federal permitting for energy infrastructure projects.
“We’re proud to have a lot of our work as the foundation for this, and I think if they send us over something that includes this, it’s got a really good chance of passing in the House,” Peters told me. Evans added that bringing forward bipartisan bills “gives a little bit more impetus to the Senate to know that the House is looking for these things.”
While the Senate’s deal will be up to the senators, Peters told me he envisions a broad permitting package that could include reforms to the National Environmental Policy Act to shorten permitting timelines, preventing the president from nixing individual projects, and reform Section 401 of the Clean Water Act which effectively devolves power to tribes and states to block a variety of interstate projects. “I think it’s coming together pretty well,” Peters said. “Obviously, we’re waiting for white smoke from the Senate.”
A permitting reform package may be one of the last major bills several bipartisan-minded House members get to vote on.
Election day is about six weeks off, and while Peters will likely have an easy time getting reelected for this eighth term, Evans is in a tough race. His purple-hued district is a target for the House Democratic campaign arm, which is hoping to flip it to former Colorado House of Representatives member Manny Rutinel, who worked as a lawyer at the environmental group Earthjustice. The Cook Political Report rates the race as toss-up, and Nate Silver gives Rutinel a roughly 75% to win.
But Rutinel won’t be getting any campaign help from Peters.
When I asked Peters about the timing of releasing a bill that could boost an endangered Republican’s bipartisan bona fides less than two months before an election, Peters told me that he and Evans had been working on it “for a while,” and that “my colleagues know that I’ve worked with Republicans to get problems solved.”
He said he wasn’t “participating in Gabe’s election” and wasn’t giving any money to his campaign, but also that he wouldn’t campaign Evans’ challenger, despite the opportunity to bolster his own caucus.
Peters is not shy about praising Evans. “What I appreciate about Gabe is that it takes a little bit of initiative to separate yourself from the majority — particularly when you’re in the trifecta — and do your own thing. He’s been a good partner in helping find ways to reduce process and make things go faster,” he told me.
Evans told me that he and Peters met early in this Congress, as Evans was getting settled into his new office in the Longworth building. “We’ve built the relationship over the last two years with a lot of the different areas that we’ve collaborated on.”
“I always try to meet the members of my committee and find out who will work with me. And I was fortunate to find Gabe,” Peters said.
“I do want to win the majority in the next Congress,” Peters went on, but “the norm should be that we figure out ways to work together to solve problems, and, you know, we’ll let the voters of Colorado 8 decide who to send me.”
Evans, for his part, told me that he had to work with Democrats to get anything passed as a member of a minuscule Republican minority in the Colorado statehouse, and that the 40-plus members of the bipartisan Problem Solvers Caucus have agreed not to campaign against each other. “There’s 385 other members that you can go pick fights with,” he said.