1. Trump Blows Into Office With a Federal Wind Ban
He promised to “fully unleash” American energy, but apparently only meant oil and gas.
Even as he expedited permitting for fossil fuel projects, Trump signed an executive order on his first day banning new permits, loans, and leases for offshore and Federal onshore wind projects. This puts planned projects in jeopardy — and opens the door for delays and cancellations of projects already underway.
Offshore wind has been one of Trump’s odd fixations for years. He has justified his position, with little factual basis, by citing dead birds, noise, and health impacts; he’s also called wind turbines ugly (has he ever seen an oil refinery?).
Aside from the climate impact, blocking wind — one of the cheapest and most reliable energy sources — will keep household energy costs sky-high. In 2023, global offshore wind generated 59,009 MW of power from 292 operating projects and over 11,900 operating wind turbines.
NYT’s Brad Plumer: “…the moves could prove crippling for the U.S. wind industry, which provides 10 percent of the nation’s electricity and is a major source of power in Republican-led states like Iowa, Oklahoma and Texas.”
2. Biden’s Last Stand on Clean Energy
Final grants are signed, sealed, and (mostly) delivered.
In his last Friday in office, Biden announced his administration had protected about 84% of the grants ($96.7 billion) from the Inflation Reduction Act, “obligating” the funds through contracts that mandate that they be spent.
What’s been obligated, by the numbers:
94% ($8.8 billion) of Department of Energy funding for state energy efficiency rebate programs.
97% ($9.45 billion) to USDA programs to help electric co-ops expand clean energy.
$38 billion at the EPA, including committing 100% of a greenhouse gas reduction fund and 94% of all of its IRA grant programs.
Of the remaining 16%, most are for USDA rural programs that are critical for rural decarbonization and support for farmers. Their fate is uncertain under the new administration.
Pleiades’ Frances Sawyer: “The IRA truly unlocked clean energy for rural America. The USDA raced through the tape to deliver clean energy for rural communities, who need affordable and reliable energy more than anyone but are often left out of clean energy development.”
3. Big Money for Rivian
The loan for a manufacturing plant will buoy the Georgia economy and support booming EV demand.
In a final move to protect progress in the EV market, the Biden administration granted Rivian an eye-popping $6.57-billion-dollar loan to support the construction of a massive new SUV manufacturing plant east of Atlanta, lifting the regional economy and creating up to 9,500 jobs.
The giant facility will eventually manufacture up to 400,000 vehicles a year — a 500% increase over Rivian’s current production. The U.S. EV market saw a 12% increase in sales in the final quarter of 2024, and the EVs manufactured at the facility are expected to save approximately 146 million gallons of petroleum annually.
4. AI Accelerates, Sending Climate Progress Backward
Without intervention, a new AI consortium will mean more fossil-fuel generation and higher costs for ratepayers.
One day after Trump’s inauguration, Open AI and SoftBank announced the launch of a new company, The Stargate Project, to accelerate the country’s AI buildout, with a projected $500 billion investment over the next 4 years.
Doug Burgum, former North Dakota governor and Trump’s pick for Secretary of the Interior, has said that the U.S. needs to “baseload” AI to edge out foreign competition. This will mean renewed demand for fossil generation, including extending the life of costly and polluting coal plants.
If load grows slower than projected, utilities that overinvest in new gas generation will be stuck with more stranded assets in the medium term — and the money they’re spending on fossil generation is money that won’t be going into renewables.
ANTI-ESG WATCH
So far in the new legislative session, 37 anti-ESG bills have been introduced in 16 states.
ZERO SUPPORTERS: No proponents appeared to testify in support of a New Hampshire anti-ESG bill, with even the bill sponsor failing to show up. Banking associations, national insurers, business trade groups, and sustainability firms all showed up to testify against it.
WEAKENED PROPOSAL moves forward in Wyoming: Following vehement opposition from the state treasurer, investment managers, firefighters, and others, HB 80 passed the state House with 11 Republicans voting “no,” but only following amendments intended to water it down. HB 80 could cost the state’s retirement system $1.16 billion.
Follow anti-ESG bills around the country on the Pleiades State Legislation Tracker.
Super insightful!