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FINANCE: The Trump administration’s reversal of its federal funding freeze doesn’t extend to climate spending allocated under the Inflation Reduction Act and sets the administration up for a fight over Congress’ constitutional spending authority. (Canary Media)
ALSO:
POLITICS:
OIL & GAS:
STORAGE: Tesla installed 31.4 GWh of battery storage last year, double its total in 2023, and the company told analysts that it expects installations to grow another 50% this year. (Utility Dive)
HYDROGEN: Two southern California cities launch the nation’s first public hydrogen utility, saying they hope to make the fuel more accessible, affordable and transparent. (Utility Dive)
NUCLEAR:
OFFSHORE WIND: Shell withdraws from its partnership in an offshore wind farm off New Jersey, claiming a loss of $1 billion, but the developers say they will still proceed with the project. (New Jersey Monitor)
UTILITIES: North Carolina clean energy advocates are angry after Duke Energy joins other utilities calling on the U.S. EPA to weaken coal ash and gas regulations that would affect 31 unlined coal ash ponds and plans for four new gas plants in the state. (Inside Climate News)
CARBON CAPTURE: A carbon capture company signs a deal with Microsoft to provide the tech company with more than seven million tons of carbon removal credits from projects in Arkansas, Louisiana and Texas. (Axios)
TRANSPORTATION:
A state-funded climate financing authority will begin ramping up lending in Minnesota this year after hiring its first executive director in October.
The Minnesota Climate Innovation Finance Authority, established by state legislators as part of a flurry of climate and clean energy bills in 2023, is charged with annually lending at least $25 million to stimulate clean energy development and greenhouse gas emissions reduction projects.
The timing — as the Trump administration sows chaos and confusion around federal grant funding — is coincidental, but could help some projects withstand the uncertainty.
Kari Groth Swan, the state authority’s executive director, said she hopes to use her background in banking and community development to help connect promising projects with state and private money.
She recently spoke with the Energy News Network about the launch of the program, which has already drawn dozens of applications.
What kind of projects are eligible?
The finance authority seeks to fund projects that help Minnesota meet its climate action goals, including the Climate Action Framework. The green bank has received applications for district hydrothermal energy, solar gardens, new energy-efficient construction, electric vehicle charging stations, air source heat pumps, battery manufacturing, and the Solar on Schools program.
How does it work?
The funding process is similar to what conventional lenders use. Applicants provide two years of financials, a narrative, a project budget, a list of commitments from other funders, and other financial information.
“We’re not funding ideas,” Swan said. “We’re funding viable, actionable projects that can get done and create jobs.”
A governing board appointed by Gov. Tim Walz makes the final lending decisions. The board includes representatives of state agencies, industry organizations, tribal nations, labor unions and people from other professions.
Why does the state need a green bank?
Green banks are mission-driven to promote clean energy projects, and have technical expertise in energy lending. Minnesota’s green bank intentionally focuses on underserved markets unlikely to receive all their capital from private lenders. By deploying a lending institution rather than relying on grants for clean energy projects, the state creates a revolving fund as loans are repaid.
The finance authority won’t ever be the primary lender on a project, but having the state involved helps move projects forward, Swan said. The green bank has a pipeline of $25 million in loan applications from projects worth over $265 million.
Swan said the first wave of applicants came fully formed and with significant capital in place. The second wave might need some additional advocacy with lenders. “I will be out talking to the traditional lenders, saying, ‘Here’s an example of a project and here’s what the capital stack looks like. Will you partner with us?’”
How large are the loans?
A wide range of loan amounts are available. The green bank requires a minimum loan amount of $250,000, and while the first three loans it issued were all over $1 million, Swan expects a greater variety of loan amounts now that the bank is fully operational. In addition, no loan can exceed 10% of the amount the bank loans annually. The bank may also fund nonprofit lenders who could provide capital to smaller clean energy projects.
How much money is available?
By statute, the bank must lend at least $25 million annually. The Legislature allocated $45 million in 2024 to get the green bank going. Last year, the state competitiveness fund provided $60 million and the federal government added $25 million.
What other requirements are there?
Half of the loans must meet guidelines for environmental justice communities based on the U.S. Department of Energy’s current definition. To qualify, a community’s non-White population must be at least 40%, and 35% of the population must have an income at or below 200% of the poverty level.
How could President Trump’s attacks on federal clean energy affect the program?
Swan thinks federal investment tax credits for clean energy will survive under Trump, adding that unwinding them quickly will be challenging because they’re part of the tax code. But the Trump administration has already signaled a willingness to usurp Congress’ constitutional spending authority when it comes to clean energy, which could mean a greater need for money but also fewer projects ready to fund in Minnesota.
SOLAR: A virtual power plant startup offers free solar panels and battery systems to thousands of Texas homeowners that would provide backup power during outages but otherwise be used by the company as a grid resource. (Canary Media)
ALSO:
EFFICIENCY: Advocates are “crossing their fingers” that the incoming Trump administration won’t revoke $208 million in federal funding for a residential energy efficiency rebate program announced yesterday in North Carolina. (WSOC)
ELECTRIC VEHICLES:
GRID:
OIL & GAS: Texas joins a 22-state coalition suing the U.S. EPA to block implementation of a methane emission tax created under the Inflation Reduction Act. (Texas Tribune)
PIPELINES: An open house for a planned natural gas pipeline expansion project in Alabama draws hundreds of residents and property owners. (Elmore Autauga News)
NUCLEAR: A company hopes to build the world’s first commercial nuclear fusion energy plant in Chesterfield County, Virginia, by the early 2030s. (WRAL)
UTILITIES:
COAL: A West Virginia coal mine will be idled for at least three months so that the operator can extinguish an underground mine fire. (MetroNews)
CLIMATE: For much of central Appalachia, 2024 was the hottest year on record, driven by a mild winter and warm overnight temperatures that scientists say are signs of human-caused climate change. (Louisville Public Media)
COMMENTARY: Duke and Southern Co. are among the utilities postponing coal plant retirements ahead of President-elect Trump’s second term, but a journalist concludes the changes are mostly stopgap moves that do not signal a reversing tide in coal’s favor. (Inside Climate News)
GRID: Utilities in Michigan, Ohio, Indiana, Iowa and Wisconsin are among the recipients of $22.4 billion in conditional loan guarantees announced by the U.S. Department of Energy for renewable energy and gas modernization projects, but it’s unclear if the Trump administration will finalize them. (Canary Media)
COAL:
SOLAR: A Michigan researcher says the controversy over leasing state-owned land for solar is unsurprising because “we haven’t really come to terms with” the land use implications of renewable energy. (Bridge)
PIPELINES: Cleaning up a recent spill from the Line 6 pipeline in Wisconsin will cost more than $1 million, Enbridge tells federal regulators. (Wisconsin State Journal, subscription)
FOSSIL FUELS: During his confirmation hearing for interior secretary, former North Dakota Gov. Doug Burgum says the U.S. should leverage fossil fuel development for “energy dominance” and questions the reliability of renewable energy. (Associated Press)
CLIMATE: A national nonprofit formed by college students to make the conservative case for climate action hopes to convince the Trump administration to pursue an “America-first climate strategy.” (Grist)
NUCLEAR: North Dakota lawmakers consider the potential of building new nuclear or coal plants with carbon capture technology to meet future electricity needs, though experts say both options would be expensive. (Bismarck Tribune)
ELECTRIC VEHICLES: Illinois officials say a $114 million federal grant 14 electric truck charging hubs will position the state as a leader in electrified freight transportation. (FOX 2)
COMMENTARY: Ohio’s economy has benefited from wind and solar development, though that progress could be in jeopardy if the Inflation Reduction Act is scaled back, clean energy advocates say. (Natural Resources Defense Council)
POLITICS: A group of young conservative climate advocates say President-elect Trump’s return to office creates an opportunity for an “America-First” climate strategy to “win the clean energy arms race.” (Grist)
OVERSIGHT:
TRANSITION:
ELECTRIC VEHICLES:
GRID:
ELECTRIFICATION: Massachusetts could have a hard time reaching its goals for heat pump adoption, as the state’s high electricity prices make operating the systems too costly for many households. (Boston Globe)
CLEAN ENERGY: Advocates say community benefits agreements are an effective way of garnering local residents’ support for proposed clean energy developments. (High Country News)
OFFSHORE WIND: Officials and climate advocates assess the likely impact of President Trump’s pause on new offshore wind leases and permits, with some expressing optimism that most ongoing developments will be unaffected and others worrying about stranded investments, job losses, and delayed progress toward climate goals. (WBUR, Boston Globe, Maine Morning Star)
ALSO: Days before the inauguration, federal regulators give a wind farm off Massachusetts the go-ahead to continue construction and energy production after the failure of a turbine blade in July halted the operation. (Vineyard Gazette)
EFFICIENCY:
CLEAN ENERGY:
UTILITIES: New Hampshire regulators instruct utilities to buy some electricity on day-to-day markets rather than acquiring it all in six-month advance contracts, a move the state’s consumer advocate says could make residents vulnerable to unexpected price spikes. (Concord Monitor)
TRANSPORTATION: New Jersey Gov. Phil Murphy, a longtime opponent of New York’s congestion pricing, asks Trump to take a “close look” at the program, saying it did not receive enough federal scrutiny before its launch earlier this year. (The Hill)
NATURAL GAS: In Maryland, Democratic state lawmakers contemplate turning to natural gas to help address tight power supplies and rising prices. (Fox Baltimore)
COAL: Maryland identifies nearly 100 coal ash dumps holding 200 million pounds of ash across the Chesapeake Bay region, many of which are unmonitored or poorly mitigated, allowing toxins to seep into the groundwater. (Bay Journal)
COMMENTARY: Connecticut should modify policies and increase program funding to unlock community solar’s benefits for disadvantaged communities, says a local college student studying urban planning. (CT Mirror)
WIND: President Trump issues an executive order halting work on the recently approved Lava Ridge wind project in southern Idaho, saying it “is allegedly contrary to the public interest and suffers legal deficiencies.” (Idaho Statesman)
SOLAR:
CLEAN ENERGY: A California lawmaker introduces legislation that would extend state renewable energy tax incentives in an effort to preempt Trump administration cuts. (E&E News, subscription)
LITHIUM: The Biden administration finalized a nearly $1 billion loan for the contested proposed Rhyolite Ridge lithium mine in Nevada. (Nevada Current)
COAL: PacifiCorp cancels scheduled coal plant retirements in Utah, citing state and federal regulatory changes. (Utah News Dispatch)
UTILITIES:
GRID: Urban Alaska utilities warn customers to prepare for rolling blackouts as a natural gas shortage intensifies. (Northern Journal)
OIL & GAS: Portland, Oregon’s city council begins considering issuing a permit to Zenith Energy’s contested oil storage facility and terminal. (KOIN)
BUILDINGS:
CLIMATE: New Mexico advocates rally at the state capitol and call on lawmakers to take immediate action to mitigate the climate crisis. (Source NM)
NUCLEAR:
BIOFUELS: Northern California advocates look to shut down a biomass power plant fueled by wood waste, saying it emits climate-warming carbon and other pollutants. (JPR)
EMISSIONS:
GRID: An analysis shows the vast majority of 2024’s largest clean energy projects were built in Texas, which leads the U.S. in installed utility-scale solar and wind capacity and is gaining on California for battery storage. (Canary Media)
ALSO:
WIND: Oklahoma lawmakers take aim at renewables with two dozen bills that restrict wind and solar development, including one bill to allow counties to block wind projects near crude oil hubs. (Tulsa World)
OIL & GAS:
ELECTRIC VEHICLES: Trump’s rollback of a $7,500 tax credit for the purchase of electric vehicles could delay or halt South Carolina’s new and planned electric vehicle and battery plants, which it’s already spent millions to attract. (The State)
CARBON CAPTURE: Shell and Mitsubishi name a startup company to provide carbon capture technology at a direct air capture hub they want to build in Louisiana, although the project is contingent on clean energy funding the Trump administration might roll back. (E&E News, subscription)
NUCLEAR: The Tennessee Valley Authority selects contractors for the initial planning and design phases of a planned 300 MW small modular nuclear reactor in Tennessee. (Power)
COAL: A Virginia bank says it’s lost $65.1 million in interest income since placing debt owed by West Virginia U.S. Sen. Jim Justice’s family’s coal companies on nonaccrual status in mid-2023. (Cardinal News)
ENVIRONMENTAL JUSTICE: A Texas official calls on federal law enforcement to reject a federal housing agency’s claim the state mishandled flood mitigation funding from Hurricane Harvey by discriminating against Black and Hispanic residents. (Houston Chronicle)
CLIMATE: Researchers discuss the possible role of climate change in a recent polar vortex that brought cold temperatures and snow to the Gulf Coast. (WWNO)
UTILITIES:
COMMENTARY:
President Trump was sworn in Monday, and immediately got to work signing executive orders targeting climate action, wind power, electric vehicles and other priorities of the previous administration.
One of Trump’s biggest moves was to declare a national emergency on energy, noting that power demand is growing and that the country needs to move quickly to meet it. The move unlocks strong executive powers that Trump said he’d use to encourage fossil fuel production — and could open him up to legal challenges if he can’t prove there’s a true energy emergency.
To address the declared emergency, Trump ordered federal agencies to review policies that “burden the development of domestic energy resources” and dismantle them as soon as possible.
But the growing need for energy at home didn’t stop Trump from ending a freeze on permitting for liquefied natural gas exports. And at the same time, Trump also halted federal permitting for new wind projects, even though the industry added 5 GW of new power capacity to the grid last year.
Trump also froze unspent federal subsidies for EV purchases and for automakers to build EV and battery factories, taking away a big incentive for manufacturers and consumers to move away from gas-powered cars.
All of these day-one orders have a clear beneficiary: the fossil fuel industry. But as pollution continues to drive climate change, communities on the front lines of worsening winter storms, hurricanes and wildlifes won’t be sharing in the win.
🔋 Clean energy first: A group of young conservative climate advocates say President-elect Trump’s return to office creates an opportunity for an “America-First” climate strategy to “win the clean energy arms race.” (Grist)
🇺🇲 Getting nonpolitical: Experts say focusing on “nonpolitical” benefits like grid resilience and energy security will help expand virtual power plants during the upcoming Trump administration. (Utility Dive)
🚗 Tesla’s paradox: Although Tesla CEO Elon Musk is leading Trump’s charge to slash government programs, his company has received $10.7 billion from federal climate credits over the last decade, according to securities filings. (E&E News)
🐑 A wooly good pairing: A 900 MW Texas solar farm uses roughly 3,000 sheep to maintain vegetation at its 4,000-acre site, illustrating a broader trend pairing livestock with solar energy development across the U.S. (Associated Press)
💸 Last loans: In what could be a final Inflation Reduction Act disbursement, the Department of Energy announced $22.4 billion in conditional loans for utilities to help cut emissions and bolster the grid. (Canary Media)
🐄 Cleaning up co-ops: A $6 billion round of funding announced by the USDA last week will help rural electric co-ops around the country develop new clean energy resources. (Canary Media)
Plus, some confirmation hearing updates
CLIMATE: The U.S. Supreme Court rejects an oil and gas industry bid to block Honolulu’s lawsuit accusing fossil fuel companies of covering up climate change’s effects and clearing the way for other states’ similar challenges to proceed. (ArsTechnica, Los Angeles Times)
ALSO: California Gov. Gavin Newsom calls on lawmakers to extend the state’s carbon cap-and-trade program beyond its 2030 expiration, saying it’s needed to reach climate goals. (RTO Insider, subscription)
HYDROGEN: The Biden administration awards a northern New Mexico rural electric cooperative $231 million to produce green hydrogen fuel using solar power and a defunct mine’s wastewater. (Albuquerque Journal)
UTILITIES:
GRID:
SOLAR: Nevada residents criticize a utility-scale solar developer for bulldozing Joshua trees to clear the way for a 185 MW facility. (KLAS)
ELECTRIC VEHICLES: The Biden administration awards California $55.9 million to install electric vehicle fast-chargers and a hydrogen fueling station for medium- and heavy-duty trucks. (RTO Insider, subscription)
PUBLIC LANDS: The U.S. Supreme Court refuses to hear Utah’s lawsuit seeking to gain control of “unappropriated” federal lands within its boundaries and loosen restrictions on oil and gas and coal development. (WyoFile)
COAL:
ELECTRIFICATION: California environmental justice advocates look to expand low-income residents’ access to building decarbonization and home electrification. (Inside Climate News)
WIND:
COMMENTARY: A Colorado columnist calls on state regulators to stand up to industry and adopt stringent regulations to rein in ozone pollution, which has exceeded federal standards for years. (Colorado Newsline)
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