Transition Finance Weekly - October 10, 2024
Another Dangerous Storm; FEMA Disinformation; Solar Lifts Property Values
1. Hurricane Report: Milton Hits Florida
For the second time in two weeks, the Gulf Coast is walloped by a historic storm, and Tampa Bay takes the worst of it.
We’re in a new climate reality, and Hurricane Milton has come right on the heels of Hurricane Helene. Milton developed into a category 5 storm in the scorching hot waters of the Gulf of Mexico before hitting land just south of Tampa as a category 3 hurricane on Wednesday evening.
The impact will take weeks to evaluate and months to address, but for now 3.4 million Floridians are without power, 9 have lost their lives, and thousands are returning home to assess wind and water damage.
Helene and Milton have put a spotlight on Tampa Bay’s vulnerable housing stock, which has become the least affordable for families relative to income and much of which is at or near sea level, making it vulnerable to storm surges from storms like these. Another factor in rising costs? Florida’s skyrocketing homeowners insurance rates.
These costs add up, particularly for middle class families. As Trina Winters, a long-time resident of Sunset Park, FL, shared after Helene: “After every flood, we lose a few neighbors.”
2. Disinformation Hampers Helene Emergency Response
Donald Trump and Elon Musk are fanning the flames. FEMA and local electeds are working overtime to keep focus on recovery and aid.
Toxic rumors, myths, and lies about the federal response to Hurricane Helene, amplified by right-wing extremists and major public figures like Trump, Musk, and Marjorie Taylor Greene, are interfering with rescue and recovery efforts in North Carolina and elsewhere.
FEMA and elected officials from both parties, like GOP NC Rep. Chuck Edwards, have had to waste time debunking the rumors online. Some of the false claims: Helene was deliberately engineered to help BlackRock seize land for a lithium mine; the government plans to bulldoze the town of Chimney Rock; that FEMA has no resources for North Carolinians because it spent all its funding on migrants.
Anti-government and violent rhetoric — promoted by people and foreign U.S. adversaries who benefit from eroded faith in institutions — puts responders at risk, keeps aid from reaching people who need it, and even threatens national security. This isn’t the first time; FEMA Administrator Deanne Criswell says the same thing happened after the Maui wildfires and the East Palestine, Ohio toxic train derailment.
Criswell: “I'm very concerned about convergence cyberattacks with our natural disaster — that our adversaries know when we are most vulnerable and know how to take advantage of those times.”
3. In the Shadow of Climate Disasters, Duke Indiana IRP Locks in More Polluting Fossil Fuels
Delaying its coal-free pledge while stepping up gas generation means millions of tons more CO2 emissions than previously planned.
96% of Duke Indiana’s energy comes from fossil fuels, mostly coal, and the timetable for changing that has been pushed back again. In its latest integrated resource plan, Duke Energy has delayed the phaseout of coal until 2038. At the same time, it prepares to build 3000 MW of new natural gas plants over the next 8 years, which it claims is justified by demand estimates from the AI datacenter boom, locking in fossil fuel generation for decades. In comparison, Duke’s planning for just 600 MW of new renewables.
Duke is also pushing a $42 a month bill increase on Indiana customers, in a state that’s already seeing among the steepest energy cost increases — due in part to natural gas price volatility.
4. Solar Farms Can Boost Property Values and Pollinators
And that’s not all: they help bees and butterflies flourish, too.
A new study shows that nearby property values remain stable or increased up to 2% in areas where solar farms were built. That’s not chump change; it’s a bump of 40% over the average rise of 5%.
Groups fighting against renewable energy projects often fall back on misinformation, claiming solar farms bring down property values, but this study shows the opposite.
Meanwhile, new research in the UK confirms what scientists have seen in the United States: solar farms can boost biodiversity, too. They offer a haven for habitat vegetation, which protects and expands the populations of bees, butterflies, and other insects that support a healthy ecosystem. The U.S. Department of Energy is developing guidelines to help solar project operators maximize the benefits of co-locating solar and agriculture.
Lee Walston, Argonne National Laboratory ecologist: “[Reversing the bee population decline] is achievable and you can see pretty quick results at the solar sites within four years or so.”
5. DOE Is Funding $1.5 Billion in Grid Upgrades
The federal grants will increase transmission capacity and create jobs in six states.
The U.S. Department of Energy is investing $1.5 billion in bolstering America’s electricity grid. They’re funding 1,000 miles of new transmission development and 7,100 MW of new capacity throughout Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas, while creating nearly 9,000 good-paying jobs.
Also last week, the DOE released the National Transmission Planning Study, a blueprint for maintaining grid reliability and increasing resiliency as power demand grows and our infrastructure is strained by more frequent and intense climate events.
Deputy Energy Secretary David Turk: “DOE’s approach to deploying near-term solutions and developing long-term planning tools will ensure our electric grid is more interconnected and resilient than ever before, while also supporting greater electricity demand. The Biden-Harris Administration is committed to bolstering our power grid to improve the everyday life of Americans through affordable power, fewer blackouts, more reliable power, and additional jobs across our country.”
