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Correction: David Porter, vice president of electrification and sustainable energy strategy at EPRI, spoke generally about the challenges and opportunities of constructing data centers and coordinating with utilities. He did not speak specifically about the Southwest Virginia project.
Will Payne and Will Clear are all too aware of the skeptics.
But those doubters only fuel the duo’s vision for Southwest Virginia. The former Virginia state energy office bureaucrats turned private-sector consultants have an ambitious plan to repurpose land and backfill local taxes in communities left behind by the coal industry’s decline, and also pioneer new models for powering data centers with local clean energy.
Data Center Ridge is one piece of a nonprofit venture — Energy DELTA Lab — designed to transform 65,000 mostly contiguous acres of minelands where coal was king for decades into test sites that advance energy innovation. The project has the backing of Republican Gov. Glenn Youngkin, who announced an agreement last November establishing a framework for developing the land.
“If I had a dollar for every time somebody asked why we’re wasting our time on this, I wouldn’t have to work,” Clear, a former chief deputy director with the state Department of Energy. “This isn’t a pipedream. What people need to understand is how long a project like this takes.”
The first phase involves persuading tech companies to build solar-powered data centers on up to 2,000 acres of the now-defunct Bullitt Mine in Wise County. The facilities would be able to tap into underground mine water to help cool their servers. Eventually, they say, other energy sources such as wind turbines, pumped hydro storage, or small nuclear reactors could be added across the larger property.
“This is a big idea and we need someone who can share that vision,” said Payne, managing partner of Coalfield Strategies LLC. “We need developers who believe in ramped-up clean energy.”
Glenn Davis, director of the Virginia Department of Energy, said a couple of key factors are driving the state’s interest in the lab. Many data center companies are exclusively seeking sites where they can access 100% clean energy, and new clean power generation could cushion the grid impact from the state’s booming data center sector.
“Southwest Virginia was the energy capital of the East Coast and I believe it will be again,” Davis said in an interview. “There’s a power void that needs to be filled and solar is part of that.”
DELTA, shorthand for Discovery, Education, Learning & Technology Accelerator Lab, is just one enterprise Davis is tracking as he coordinates Youngkin’s all-of-the-above Energy Plan.
Last fall, Youngkin said the intent is to attract private and public dollars to flesh out a portfolio that also draws wind, hydrogen, large-scale batteries, pumped-storage hydropower and eventually, perhaps, small modular nuclear reactors when and if that nascent technology matures. Any carbon-cutting realized by lab energy projects wouldn’t count toward Virginia’s landmark Clean Economy Act because the faraway area is served by a Lexington-based power company, Kentucky Utilities. The VCEA requires only the state’s largest investor-owned generators — Dominion Energy and Appalachian Power — to achieve a carbon-free grid by 2045 and 2050, respectively.
That doesn’t bother Youngkin, Davis said.
“What’s driving the governor’s interest is jobs, businesses and an improved quality of life,” said Davis, appointed as an agency head in April 2023. “We’re excited because the opportunity for growth there is larger than any other in the state.”
Dallas-based Energy Transfer owns the acreage, roughly 101 square miles. The lab is coordinating site development with Wise County officials and the landowner. Some of the acreage is still being mined for metallurgical coal, the type used for steelmaking and other industries. However, much of the property, including inactive Bullitt Mine, is being reclaimed.
On paper, the dozen or so projects on the drawing board, including Data Center Ridge, could generate 1,600-plus jobs, add 1 GW of new power and induce $8.25 billion in private investments, Payne said. First, however, they have to move beyond the conversation stage.
Payne and Clear, DELTA’s chief advisers, are counting on their matchmaking skills to revive a region often depicted as down on its heels.
Clear grew up in Smyth County, east of Wise County. Payne recently moved to Washington County on the Virginia-Tennessee border. The Richmond native left a position as chief deputy at the state energy department in 2019 to direct InvestSWVA, an incubator invented to diversify the region’s economy and curb carbon emissions. Appalachian Grains was one of their previous energy-related joint ventures.
Tax revenues from data centers are the boost local governments need to fill the coal gap, they say.
“Plain and simple, public safety, education, health care, municipal services and other core government sources are at risk of falling off a cliff if we do nothing,” said Clear. “We’re trying to solve this crisis.”
Josh Levi, president of the Loudoun County-based Data Center Coalition, said Southwest Virginia shouldn’t be dismissed as too inaccessible or mountainous for data center development.
Recently, the burgeoning industry began expanding into off-the-beaten path “tertiary markets,” he said. For instance, he pointed to a deal Amazon Web Service announced this year to spend $10 billion on two data center complexes in Mississippi.
It was only a few years ago that the industry reached into secondary markets such as Columbus, Ohio, and San Antonio, Texas, after initially concentrating its investments primarily in Silicon Valley, New York-New Jersey, Dallas, Chicago, Northern Virginia, Atlanta and Phoenix.
In Virginia alone, there’s a southward shift as more data centers pop up around Fredericksburg and Richmond.
“What they’re doing is credible,” Levi said about Payne and Clear. “My understanding is that they have seen levels of interest from data center developers. Whether the opportunities they’re leveraging lines up with the business needs of data centers remains an open question.”
For instance, he said, Southwest Virginia might be the right fit for backing up federal data but less so for applications such as live-streaming video or trading stocks.
Loudoun County and surrounding Northern Virginia are home to almost 300 data centers, the biggest concentration of such campuses in the world. It’s the crossroads for roughly 70% of global internet traffic.
Prolific construction of the mega-buildings that make cloud computing possible — combined with the accompanying need for transmission lines for electricity and water for cooling — have caused an uproar among community activists alarmed about their impact on local infrastructure and the environment.
Such large-scale growth prompted a tongue-in-cheek comment from Democratic state Sen. Danica Roem about exporting data centers from Prince William, the county she represents, to Tazewell County, just east of the proposed Data Center Ridge.
In an interview with the Energy News Network, Roem said she would only support siting data centers in Southwest Virginia if the projects have widespread community buy-in, are powered with renewable energy and are built on reclaimed coal mines that don’t require clearcutting of forests, which serve as carbon dioxide sinks. Utility customers shouldn’t be saddled with paying for the expensive buildout of transmission infrastructure, she added.
“I don’t want to simply shift the problems we’re having here to Southwest Virginia and create problems for the residents there,” Roem said. “If they’re building data centers there, are they going to stop digging in my district?”
Roem has joined other legislators introducing bills aimed at reining in data center growth and controlling the resources the buildings require. For instance, compared to a typical office building, the U.S. Energy Department estimates one data center needs 50 times more electricity.
David Porter, vice president of electrification and sustainable energy strategy for the Palo Alto, Calif.-based Electric Power Research Institute, said there are numerous challenges and opportunities when it comes to coordinating data centers’ power needs with utilities.
“These data centers could be a really neat idea if they can work around a lot of potential hurdles,” Porter said. High on his checklist of potential limiting factors are access to a reliable electric grid connection, battery storage to fill gaps and “major league” fiber optic cable for communications.
He emphasized that even a modest number of data centers can’t rely on renewable energy 24/7. Backup power, typically provided by diesel-powered generators, is needed to keep the centers operating when the wind isn’t blowing and the sun isn’t shining.
As well, he said, even larger data centers in the gigawatt range generate far fewer jobs than a manufacturing center.
Payne and Clear said they are far from naïve about the difficulty of solving grid and broadband issues, which they know will take years, not months, to remedy, and that the jobs will be impactful in a region where the average annual income is $42,000.
“In Southwest Virginia, we’ve seen plenty of manufacturers pick up and leave, and that wouldn’t be the case with wind turbines and data centers.”
Their models show that one 36 MW data center, considered to be a mid-size project, would generate about 50 jobs paying $134,300 a year. In an ideal scenario, the size of Data Center Ridge would eventually expand more than 25-fold to 1,000 MW.
DELTA Lab recently collaborated with a local industrial facilities authority to offer a financial incentive for data center developers, Clear noted. It translates to Wise, Lee, Scott and Dickenson counties and the city of Norton offering a tax rate on data center equipment of 24 cents per $100 of assessed value. By far, it’s the lowest such rate in the state.
“The more persuasive argument for data centers here is about sustainability for local governments and their citizens,” Clear said. “This creates a new trajectory for tax collections for the next 50 years.”
The sites they’re eyeing for data centers are atop an estimated 6 billion to 10 billion gallons of underground 55-degree mine water, which offers a less-costly method for cooling the hot air generated by hundreds of servers.
It’s not an aquifer. Over the years, rainwater has been filtered by the limestone and sandstone as it trickled through fissures and cracks and landed in cavities created as coal deposits were removed. The pools of water are as deep as 1,000 feet below the surface.
Four years before ushering in DELTA Lab, Payne and Clear had procured a state grant to study the water supply. Since then, they have been collaborating with engineers to devise a closed-loop water system that could chill the centers and eventually pump the water back underground to be reused after the Earth removes the heat it absorbed.
Drilling of test wells by a geotechnical company is scheduled to begin this fall. That exploration is funded by the federal government and managed by the U.S. Department of Energy.
In the meantime, a looming challenge is securing the flow of electricity to and from Data Center Ridge. Even if on-site solar arrays with backup battery storage are the initial power source, the project needs to have sufficient substations, transmission lines and other infrastructure to tie into the grid. That way, excess electricity can be shipped out and “imported” electrons can fill any deficits.
Payne and Clear are talking with Kentucky Utilities — which does business in Wise and four other Virginia counties as Old Dominion Power — about upgrading and adding infrastructure. That analysis is part of a larger effort spearheaded by county officials to meet long-term energy demand in Southwest Virginia.
One plus, Clear said, is that siting the buildout of substations and transmission lines will be less difficult on property with one landowner. However, he also knows investor-owned utilities often aren’t keen on asking ratepayers to fund infrastructure built to serve one distant customer.
Davis said his agency would likely pursue federal Energy Department money to construct transmission infrastructure.
Data Center Ridge has the potential to boost the utility’s renewable energy portfolio, which is 1% of a generation energy mix that is heavy on coal, 84%, and natural gas, 15%.
Although every component of their blueprint presents a separate set of obstacles, the entrepreneurs say outsiders’ perception of Appalachia is the chief hindrance.
“Even after making our case since 2019, dispelling myths about the region is our first challenge in getting developers down here,” Payne said. “They think everybody is on meth and lives in shanties.”
They persist to prove their doubters wrong.
“Everything is teed up here to be executed,” Clear said. “It’s getting that first domino to drop that’s really important.”
CARBON CAPTURE: A proposed multi-state carbon pipeline would capture emissions from ethanol plants’ corn fermentation process, but wouldn’t address about 7 million annual metric tons emitted by industrial machinery at the plants. (South Dakota Searchlight)
GRID:
NUCLEAR:
PIPELINES:
CLIMATE: A new study finds very little research on the ways that funding from oil and gas companies influences climate research, and whether it may be creating bias or conflicts of interest. (Inside Climate News)
UTILITIES:
SOLAR:
Solar customers and clean energy advocates are waiting to see if New Hampshire will continue its system for compensating customers who share excess power on the grid.
State regulators at a recent hearing seemed unconvinced about the policy’s benefits, despite support from utilities, customers, and hundreds of residents who submitted public comments on a proposed extension.
“This commission is highly skeptical of anything involving energy efficiency or clean energy, and focused almost solely on cost,” said Nick Krakoff, senior attorney for the Conservation Law Foundation in New Hampshire.
These compensation plans, generally referred to as net metering, are widely considered one of the most effective policies for encouraging more solar adoption. Recently, however, several states have changed or considered changing their programs, as utilities object that the policies are too costly and some politicians and policymakers push for more purely market-based approaches.
New Hampshire’s net metering rules haven’t been modified since they were established in 2017. The state’s public utilities commission opened a case to consider the question of whether and how to adjust the rules in September 2022. A year into the proceedings, the state’s major electric utilities — Eversource, Liberty Utilities, and Unitil — came out in support of continuing the existing system of net metering, despite the tendency of utilities nationwide to consistently push for lower net metering rates. The move was a welcome surprise for environmental advocates.
“If you don’t have a compensation rate that’s high enough, you’re not going to have customers that are going to want to invest in solar panels or other renewable energy,” Krakoff said.
In early August, a diverse coalition including the utilities, the Conservation Law Foundation, Clean Energy New Hampshire, Granite State Hydropower Association, Standard Power of America, and Walmart reached a settlement agreement about the future of the policy.
The agreement calls for the state to keep the current net metering structure in place for two years; at the end of two years, utilities would propose time-of-use rates for net metering, so the compensation rate more closely matches the real-time value of the power being sent into the grid. Also, any projects that join the net metering program during those two years will receive the same compensation for 20 years before transitioning into whatever new system is created by then (currently the compensation ends in 2040).
An influx of public comments has also reflected wide support for the tenets of the agreement. Nearly 450 comments were submitted since the beginning of the year, more than Sam Evans-Brown, executive director of Clean Energy New Hampshire, has ever seen in a public utilities case, he said. The vast majority urge the commission to maintain the current net metering system.
Peterborough resident Brian Stiefel was among those who filed comments. He and his wife installed 37 solar panels on their home in 2021, at a cost of $51,000. Though the solar doesn’t fully cover their electric bills, it provides $2,000 to $3,000 in savings per year, in large part due to net metering.
“A big part of the decision to do this was the fact that the state would approve us for net metering,” Stiefel said in an interview. “If that’s going to change it could have a significant financial impact on everybody who has panels and is set up with net metering.”
However, clean energy advocates say they have seen some signs in recent months that the commission might not be paying much attention to the benefits the system creates, while seeking out evidence that net metering creates a cost burden for consumers who aren’t part of the program.
“The concern is that the chair is looking for a cost shift and is going to do whatever it takes to find one,” Evans-Brown said.
Last spring, the commissioner requested a series of records in the case, several focused on gathering information about other states’ net metering programs — information that did not seem relevant to the decisions needed in New Hampshire, Evans-Brown said. The commission also requested, in a different docket, information about stranded cost recovery, which it then placed into the record on the net metering case as well, a move energy advocates interpreted as an attempt to focus on costs to the exclusion of benefits.
Then, in hearings on August 20 and 22, the commissioners asked questions that seemed focused on finding costs being passed on to consumers, even though there is simply no such evidence on the record, Krakoff said.
Advocates’ concerns are magnified by the commission’s history: In 2021, the commission drastically reduced funding for the state’s energy efficiency rebate and incentives. Though the utilities, consumer advocates, and environmental groups had come to an agreement to raise funding for the programs, the commission claimed that the program would burden consumers and that the state should focus on promoting market-based energy efficiency services.
Current commission chair Daniel Goldner was one of the commissioners who signed the energy efficiency decision. During his confirmation hearing earlier that year, Goldner expressed skepticism about climate science, and advocates raised concerns about his lack of experience in the energy field.
“They expressed strong skepticism of energy efficiency and actually gutted the program,” Krakoff said, comparing that case to the present-day net metering proceedings. “It’s very concerning.”
Now advocates, homeowners, and other stakeholders can only wait to see what the commission decides and when they decide it. An order could come by the end of the year, said Evans-Brown, or the commissioners could decide to push the matter well into the new year — there are no deadlines set on the process.
Should the commission in some way reject the settlement, there is still hope the legislature would take action to protect net metering. As part of the proceeding, state Sens. Kevin Avard, Howard Pearl, and David Watters submitted a letter explaining their belief that reducing net metering compensation would be against the goals of the legislature.
“It is the intent of the legislature to preserve a viable net metering program in the state of New Hampshire, and we will take action to do so if necessary,” they wrote.
Resolving the question through legislative action, however, would leave the matter open and undecided for even longer, making it harder to encourage solar development in the state, advocates noted.
“We were expecting this to be a challenging docket when this was first announced,” Evans-Brown said. “It’s frustrating, but not surprising.”
UTILITIES: The Biden administration awards rural electric cooperatives $9.7 billion in grants and loans to expedite the clean energy transition, with about $1.1 billion going to three Colorado coops. (Big Pivots)
ALSO: Arizona regulators approve a proposed high-voltage overhead power line through midtown Tucson following pushback from residents and city officials. (Arizona Daily Star)
SOLAR: The U.S. EPA awards the Hopi Tribe in Arizona $20 million to bring solar power to about 900 off-grid homes. (KNAU)
BUILDINGS: The U.S. Energy Department awards Colorado $20 million to help implement its building performance standards aimed at cutting large structures’ carbon emissions, with the funds targeting disadvantaged communities. (Canary Media)
CLIMATE:
OIL & GAS: Colorado regulators plug and reclaim 25 oil and gas wells in the western part of the state that were abandoned when the operating company went bankrupt. (Grand Junction Sentinel)
HYDROPOWER: The Ute Mountain Ute Tribe in southwestern Colorado completes construction on an irrigation-integrated hydropower system that harnesses excess pressure in water pipes. (Hydro Review)
STORAGE: A fire breaks out in a grid-scale battery energy storage installation in a San Diego suburb as county officials consider banning new facilities until stricter fire safety restrictions are in place. (KUSI, Voice of San Diego)
WIND:
COMMENTARY: An economist argues that more federal just transition efforts should be directed toward oil and gas communities to help devise holistic economic development strategies. (The Conversation)
WIND: Federal officials give US Wind’s 2 GW offshore wind project off the Maryland and Delaware coastline its final approval, although local officials have previously threatened to sue if the project got this far. (Capital News Service, Maryland Matters)
RENEWABLE ENERGY:
SOLAR: Advocates say Pennsylvania’s largest-ever solar facility, the 220 MW Great Cove project, shows how renewable energy has a place in the fracking-heavy state. (E&E News, subscription)
EQUITY:
BUILDINGS:
GRID: A PJM Interconnection executive says the grid operator could propose an accelerated interconnection approval process for shovel-ready generation projects. (Utility Dive)
BATTERIES: A Burlington, Vermont, concert series this summer took its usual diesel generators out of service and replaced them with 1.3 MWh of battery electric generators. (news release)
ELECTRIC VEHICLES: In Massachusetts, Eversource customers begin seeing a relatively new electric vehicle program fee delineated on their bills that was previously tucked into the general delivery charges. (WCVB)
COMMENTARY:
UTILITIES: California advocates criticize lawmakers for failing to pass bills aimed at containing rising utility rates while continuing to fund grid upgrades and wildfire-hazard mitigation efforts. (Canary Media)
ALSO: Six candidates for Arizona’s utility regulatory commission are split down party lines on policy stances, with Democrats favoring clean energy and Republicans looking to keep fossil fuels in the mix. (Arizona Daily Star)
SOLAR:
OIL & GAS: Observers say a northern California city leveraging a ballot initiative to extract a $550 million payout from Chevron over damages from its oil refinery could provide a model for other communities. (Politico)
ELECTRIFICATION: California legislation awaiting the governor’s signature would allow natural gas utilities to pilot up to 30 neighborhood-scale building electrification and decarbonization projects. (Utility Dive)
ELECTRIC VEHICLES: Colorado allocates $1.3 million to fund an additional round of electric bicycle purchase rebates, saying residents have redeemed more than 6,700 of the incentives so far. (news release)
CARBON CAPTURE: The U.S. Energy Department awards a Wyoming research center $5 million to launch the first phase of a pilot project aimed at capturing carbon from a 450 MW coal plant. (Power)
CLEAN ENERGY: The U.S. Energy Department awards New Mexico $2 million to install heat pumps, solar panels and other efficiency upgrades on 85 homes in disadvantaged communities. (news release)
GRID:
NUCLEAR: Idaho National Laboratory brings online a hot cell facility for researching and testing materials used in nuclear reactors. (East Idaho News)
CLIMATE:
MINING: A company begins construction at a contested battery metals mine in southern Arizona after state regulators approve its air quality permit. (Arizona Republic)
CLEAN ENERGY: President Biden today will announce $7.3 billion for rural energy cooperatives to build or purchase clean electricity, enough to power as much as 20% of the nation’s rural homes. (The Hill)
OIL & GAS:
ELECTRIC VEHICLES:
GRID:
WIND: Global warming could shift wind patterns, creating more potential for offshore wind power generation, new research shows. (The Guardian)
UTILITIES:
SOLAR:
It’s been nearly 20 years since states and cities started adopting climate goals, setting themselves on a path toward reducing emissions and rolling out clean energy. Whether they’re actually on track to meet those goals is up for debate.
Advocates across the country have sued municipalities they say are failing on their climate commitments, like those in San Diego who alleged the city’s climate plan lacked funding and a clear timeline, and a group in Vermont that said the state wasn’t complying with its 2020 emissions law.
But in Maine, climate advocates are getting specific with their complaints, the Energy News Network reports. A pending youth-led lawsuit targets the state’s environmental protection agencies, and says they haven’t adopted strong enough regulations to propel the state’s electric vehicle rollout.
The suit centers on Maine’s 2019 climate law. In it, the state said it would focus on cutting emissions from its “most significant sources” — and transportation tops that list. But even though the state has incentivized electric vehicle adoption, it’s still far from meeting its EV goals. So advocates say the state should implement California’s strongest-in-the-nation EV standards, which go even further than federal rules.
Environmental law professor Jennifer Rushlow told ENN that narrow lawsuits like this one tend to be more successful than broad suits that “get kind of lost to politics.” — and can inspire change in public opinion, too.
Read more about Maine’s unique climate lawsuit at the Energy News Network.
💰 More federal spending is coming… Researchers estimate the clean energy transition by 2031 will demand $1 trillion in federal spending — about 15 times what has been distributed so far via the Inflation Reduction Act. (Grist)
🏭 But is it all smart? The U.S. has spent more public money on carbon capture and gas-produced hydrogen than any country, a new report finds, even though the technologies remain unproven as cost-effective climate solutions. (The Guardian)
♻️ A new spin for wind: National Renewable Energy Laboratory researchers say they’ve developed a wind turbine blade made from plant materials that can be recycled into new shapes or blades. (New York Times)
👷 Clean jobs report: The Department of Energy says clean energy jobs last year grew at twice the rate of other sectors and saw unionization rates higher than in the broader energy industry. (Reuters)
Dig deeper: The Bureau of Labor Statistics says wind energy is the country’s fastest growing field and projects 60% job growth over the next 10 years. (Axios)
🚘 More power for charging: The Biden administration announces $521 million in grants for electric vehicle charging, and says the number of publicly available chargers has doubled since 2021. (Utility Dive)
☀️ Solar’s bright future: A columnist details how increasingly cheap and widely available solar power will make once-far-fetched applications and technologies possible. (New York Times)
🇺🇲 Plus, some politics
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As low-income households face the dual burden of weather extremes and high energy costs, energy efficiency is an increasingly important strategy for both climate mitigation and lower utility bills.
Passive House standards — which create a building envelope so tight that central heating and cooling systems may not be needed at all — promise to dramatically slash energy costs, and are starting to appear in “stretch codes” for buildings, including in Massachusetts, Illinois, Washington and New York.
And while some builders are balking at the initial up-front cost, other developers are embracing passive house metrics as a solution for affordable multifamily housing.
“We’re trying to make zero energy, high performing buildings that are healthy and low energy mainstream everywhere,” said Katrin Klingenberg, co-founder and executive director of Passive House Institute-U.S., or Phius.
Klingenberg says the additional work needed to meet an aggressive efficiency standard, is, in the long run, not that expensive. Constructing a building to passive standards is initially only about 3%-5% more expensive than building a conventional single family home, or 0%-3% more for multifamily construction, according to Phius.
“This is not rocket science… We’re just beefing up the envelope. We’re doing all the good building science, we’re doing all the healthy stuff. We’re downsizing the [heating and cooling] system, and now we need someone to optimize that process,” Klingenberg said.
A Phius-certified building does not employ a conventional central heating and cooling system. Instead, it depends on an air-tight building envelope, highly efficient ventilation and strategically positioned, high-performance windows to exploit solar gain during both winter and summer and maximize indoor comfort.
The tight envelope for Phius buildings regulates indoor air temperature, which can be a literal lifesaver when power outages occur during extreme heat waves or cold snaps, said Doug Farr, founder and principal of architecture firm Farr Associates.
Farr pointed to the example of the Academy for Global Citizenship in Chicago, which was built to Phius standards.
“There was a really cold snap in January. Somehow the power went out [and the building] was without electricity for two or three days. And the internal temperature in the building dropped two degrees over three days.”
Farr said that example shows a clear benefit to high efficiency that justifies the cost.
“You talk about the ultimate resilience where you’re not going to die in a power outage either in the summer or the winter. You know, that’s pretty valuable.”
There is also a business case to be made for implementing Phius and other sustainability metrics into residential construction, such as lowered bills that can appeal to market-rate buyers and renters, and reduced long-term maintenance costs for building owners.
AJ Patton, founder and CEO of 548 Enterprise in Chicago, says in response to questions about how to convince developers to consider factors beyond the bottom line, simply, “they shouldn’t.”
Instead, he touts lower operating costs for energy-efficiency metrics rather than climate mitigation when he pitches his projects to his colleagues.
“I can’t sell people on climate change anymore,” he said. “If you don’t believe by now, the good Lord will catch you when He catch you.
“But if I can sell you on lowering your operating expenses, if I can sell you on the marketability, on the fact that your tenants will have 30%, 40% lower individual expenses, that’s a marketing angle from a developer owner, that’s what I push on my contemporaries,” Patton said. “And then that’s when they say, ‘if you’re telling the truth, and if your construction costs are not more significant than mine, then I’m sold.’”
Phius principles can require specialized materials and building practices, Klingenberg said. But practitioners are working toward finding ways to manage costs by sourcing domestically available materials rather than relying on imports.
“The more experienced an architect [or developer] gets, they understand that they can replace these specialized components with more generic materials and you can get the same effect,” Klingenberg said.
Patton is presently incorporating Phius principles as the lead developer for 3831 W Chicago Avenue, a mixed use development located on Chicago’s West Side. The project, billed as the largest passive house design project in the city to date, will cover an entire city block, incorporating approximately 60 mixed-income residential units and 9,000 sq ft of commercial and community space.
Another project, Sendero Verde, located in the East Harlem neighborhood of New York City, is the largest certified passive-house building in the United States with 709 units. Completed in April, Sendero Verde is designed to provide cool conditions in the summer and warmth during the winter — a vast improvement for the low-income and formerly unhoused individuals and families who live there.
Even without large upfront building cost premiums and with the increased impact of economies of scale, improved technology and materials, many developers still feel constrained to cut costs, Farr said.
“There’s entire segments of the development spectrum in housing, even in multifamily housing in Chicago, where if you’re a developer of rental housing time and again … they feel like they have no choice but to keep things as the construction as cheap as possible because their competitors all do. And then, some architecture firms only work with those ‘powerless’ developers and they get code-compliant buildings.”
But subsidies, such as federal low income housing credits, IRS tax breaks and resources from the Department of Energy also provide a means for developers to square the circle, especially for projects aimed toward very low-income residents.
Nonetheless, making the numbers work often requires taking a long-term view of development, according to Brian Nowak, principal at Sweetgrass Design Studio in Minnesota. Nowak was the designer for Hillcrest Village, an affordable housing development in Northfield that does not utilize Phius building metrics, but does incorporate net-zero energy usage standards.
“It’s an investment over time, to build resilient, energy-efficient housing,” he told the Energy News Network in June 2023.
“That should be everyone’s goal. And if we don’t, for example, it affects our school system. It affects the employers at Northfield having people that are readily available to come in and fill the jobs that are needed.
“That’s a significant long-term benefit of a project like this. And that is not just your monthly rents on the building; it’s the cost of the utilities as well. When those utilities include your electricity and your heating and cooling that’s a really big deal.”
Developers like Patton are determined to incorporate sustainability metrics into affordable housing and commercial developments both because it’s good business and because it’s the right thing to do.
“I’m not going to solve every issue. I’m going to focus on clean air, clean water, and lowering people’s utility bills. That’s my focus. I’m not going to design the greatest architectural building. I’m not even interested in hiring those type of architects.
“I had a lived experience of having my heat cut off in the middle of winter. I don’t want that to ever happen to anybody I know ever again,” Patton said. “So if I can lower somebody’s cost of living, that’s my sole focus. And there’s been a boatload of buy-in from that, because those are historically [not] things [present] in the communities I invest in.”
CARBON CAPTURE: Documents show ExxonMobil lobbied aggressively for federal carbon capture subsidies — which stand to reap billions of dollars for the company — despite internal doubts about whether the technology will make a meaningful impact on emissions. (The Guardian)
ALSO: A California company cancels plans to build one of the world’s largest direct-air carbon capture facilities in Wyoming, citing intense competition from data centers for clean energy to power the facility. (Cowboy State Daily)
ELECTRIC VEHICLES:
OIL & GAS: The Biden administration grants its first gas export permit following a court ruling that blocked its efforts to delay the process. (The Hill)
POLITICS: An energy market expert refutes former President Trump’s claim that he could cut energy prices in half during his first year in office. (NBC News)
BATTERIES: A battery plant in a Pittsburgh suburb that has taken advantage of or is eligible for billions in public funds has created poor working conditions and has fired union-supporting workers, according to some employees. (Pennsylvania Capital-Star)
EFFICIENCY: Some affordable housing developers embrace Passive House building standards that make homes highly energy-efficient with only slightly higher upfront costs. (Energy News Network)
WIND: Vineyard Wind’s broken turbine blade, misinformation campaigns and a lack of forthrightness from offshore wind developers is causing a “public relations nightmare” for the industry. (Rhode Island Current)
SOLAR:
POLLUTION: A federal court rejects a new EPA rule tightening emissions standards for industrial boilers, saying the agency went too far in classifying facilities built before the rule was proposed as “new” pollution sources. (Reuters)
COMMENTARY: A climate advocate explains why his organization is opposing a bipartisan energy permitting bill, saying the legislation’s provisions advancing fossil fuels make the price “simply too high.” (Union of Concerned Scientists)
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