“”Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled,” OMB Director Russell Vought wrote Wednesday in a post on X. While there is not yet an official announcement, he added that there would be “more info to come” from the Department of Energy. Vought said the newly rescinded funds would come from terminating projects in California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington.
If it feels like those 16 states have something in common, it’s true: All voted for then-Vice President Kamala Harris, Trump’s opponent, in the 2024 election. In fact, other than Maine, Rhode Island, and Virginia, Vought’s list includes every single state that didn’t go for Trump.”
“The energy provisions of the 900-plus page bill have come under particular scrutiny after last-minute changes phased out clean energy tax credits faster than expected and added new taxes on wind and solar projects.
At the same time, new last-minute inducements were unveiled for fossil fuels, including one classifying coal as a critical mineral when it comes to a government manufacturing credit.
“We’re doing coal,” Trump said in an interview released over the weekend on Fox News’ “Sunday Morning Futures,” where he also called solar energy projects “ugly as hell.””
In a series of panels about promoting North American gas, oil, and uranium energy in ways that will boost the economy and make North America strong and independent vis-a-vis world challenges, people are worried about the effects of Trump’s proposed tariffs which will hurt both countries’ economies and make energy more costly.
“Noah acknowledges, in passing, one particular provision of the existing nuclear regulatory framework on the United States that’s very important: radiation is held to the As Low As Reasonably Achievable (ALARA) standard, which makes it essentially impossible for nuclear to be cost-competitive.
Suppose I had a design for a cost-effective nuclear reactor, and I said I should be allowed to build it, because electricity is good and air pollution is bad. The regulator is going to look at it and say, “Well, that reactor seems awfully cheap to build, why not add a bunch more features to make the radiation levels even lower?” And then I will say, “That would be hideously expensive in a way that is net bad for public health, because it leads to more burning of fossil fuels and worse air pollution.” But the regulator comes back and says, “We’re not using a cost-benefit framework, we’re using ALARA.” And I say, “That doesn’t make sense, coal ash is radioactive — you are creating more radiation by raising my costs.” And the regulator says, “I don’t regulate coal plants, I regulate you — ALARA!”
As Jason Crawford writes, “any technology, any operational improvement, anything that reduces costs, simply gives the regulator more room and more excuse to push for more stringent safety requirements, until the cost once again rises to make nuclear just a bit more expensive than everything else. Actually, it‘s worse than that: it essentially says that if nuclear becomes cheap, then the regulators have not done their job.”
This is a deeply dysfunctional regulatory paradigm, and it reflects the Nuclear Regulatory Commission’s origins in 1974 legislation that was explicitly motivated by a belief that the old Atomic Energy Commission was too friendly to the industry.
In 2019, Congress passed the Nuclear Energy Innovation and Modernization Act, which, among other things, “requires the NRC to develop new processes for licensing nuclear reactors, including staged licensing of advanced nuclear reactors.” The hope of NEIMA’s proponents was to change 45 years of the NRC fundamentally being an agency that says “no” to stuff and make them into an agency that would create a regulatory pathway under which new kinds of nuclear reactors could be licensed and built. And after several years, the NRC did get around to writing the new rules for SMRs, but they came up with an even longer and more cumbersome regulatory process.
Earlier this summer, the ADVANCE Act reiterated Congress’s determination for the NRC to change.
But the NRC staff, to the best of my knowledge, fundamentally does not believe that America’s elected officials genuinely want them to make it faster and cheaper to build nuclear reactors. And one reason they don’t believe it is that even though the Biden administration says lots of pro-nuclear stuff, has plenty of pro-nuclear appointees, signed the ADVANCE Act, and has done a lot to help with SMRs in terms of financing, they still coughed-up an NRC nominee who basically supports the status quo. You need a team of political appointees at the agency who are willing to both drive change and also personally take the heat when change makes people mad. You can’t “just use nuclear, bro.” You need to put people in place to actually drive specific policy change in a way that will let the industry grow and work.
And of course, even if you did that, it might not work.”
“If Congress isn’t willing to end energy subsidies entirely, it could still make energy technologies more competitive by simplifying all 44 energy tax provisions. For instance, it could offer tax credits to companies based on what their emissions are, without requiring that they use any specific technologies to hit those targets. Unlike targeted subsidies, such performance-based provisions have historically led to less greenhouse emissions.”
“”In 2000, Germany launched a deliberately targeted program to decarbonize its primary energy supply, a plan more ambitious than anything seen anywhere else,” Vaclav Smil wrote in 2020 for the Institute of Electrical and Electronics Engineers’ IEEE Spectrum. “The policy, called the Energiewende, is rooted in Germany’s naturalistic and romantic tradition, reflected in the rise of the Green Party and, more recently, in public opposition to nuclear electricity generation.”
The problem, as Smil noted, is that government-favored and subsidized solar and wind are intermittent. Wind doesn’t generate electricity when the air is still, and solar is of little use at night and on cloudy days. That means old-school generating capacity has to be maintained in parallel to the new systems.
“It costs Germany a great deal to maintain such an excess of installed power,” Smil added. “The average cost of electricity for German households has doubled since 2000. By 2019, households had to pay 34 U.S. cents per kilowatt-hour, compared to 22 cents per kilowatt-hour in France and 13 cents in the United States.”
The German news magazine Der Spiegel came to a similar conclusion in 2019.
“The state has redistributed gigantic sums of money, with the [Renewable Energy Sources Act] directing more than 25 billion euros each year to the operators of renewable energy facilities,” the authors observed. “But without the subsidies, operating wind turbines and solar parks will hardly be worth it anymore. As is so often the case with such subsidies: They trigger an artificial boom that burns fast and leaves nothing but scorched earth in their wake.”
Making the matter worse is the extent to which Europe has sourced its fossil fuels from Russia. That’s a dependency partly based on easy accessibility by land to Russia’s resources. It’s also an artifact of economic diplomacy from the Cold War era intended to build trade ties to reduce the risk of conflict. But what was supposed to give the West leverage over the old Soviet Union has instead handed modern Russia enormous clout.
Comparatively clean nuclear energy might have made the difference, but the 2011 Fukushima disaster spooked Germans more, perhaps, than people anywhere else, and the country resolved to abandon nuclear power, leaving it dependent on unreliable solar and wind and, especially, imported fossil fuels. Only now, with Russia throttling the supply of natural gas to 20 percent of capacity, is the governing coalition considering extending the life of the last two nuclear power plants past the end of the year.”
“After Manchin agreed with Senate Majority Leader Chuck Schumer on the party-line tax, health care and energy bill, the West Virginia Democrat found himself bargaining with fellow moderate Sen. Kyrsten Sinema. Both hard-nosed negotiators, the Arizona Democrat’s business-friendly tax-approach clashed sharply with Manchin’s more progressive positions on taxes.
Manchin sought to target the wealthy and ended up agreeing with Schumer to target the so-called carried interest loophole that allows some people to pay lower tax rates on investment income. He also signed off on a corporate minimum tax package that most Democrats believed Sinema supported.
Ultimately, Sinema took a scalpel to the corporate minimum tax and scuttled any changes to carried interest, which Manchin called particularly “painful.” Triangulating between them through all of it: Schumer, whose job was harmonizing the views of the very public Manchin with an often-silent Sinema.”
“Permitting is the process for getting federal approval for energy projects, including oil and gas pipelines, which often undergo extensive review for their environmental impact. It can be a long and expensive process, and while Republicans and Democrats agree that the experience could be improved, they differ on what those reforms should entail.
Sen. Joe Manchin (D-WV), a chair of the Senate Energy and Natural Resources committee who has deep ties to the coal industry, has long taken issue with the current permitting process, arguing that it’s too convoluted. This summer, he struck a deal with Senate Majority Leader Chuck Schumer: In exchange for Manchin’s backing on the Inflation Reduction Act, Schumer guaranteed a vote on permitting reforms that would streamline approval of fossil fuel and renewable energy projects.”
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“In a letter sent to both Schumer and House Speaker Nancy Pelosi last week, House lawmakers argue Manchin’s reforms would make it easier to greenlight harmful oil and gas projects, and reduce constituents’ abilities to oppose such endeavors. Additionally, they claim that attaching the policies to a must-pass bill would force lawmakers to choose between “protecting … communities from further pollution or funding the government.””
“what’s really worth paying attention to are Biden’s goals for offshore wind power, which is an important energy source for regions like the northeastern US that lack the space and ample sunlight that solar energy depends on. It’s here that the new plan goes from mundane to ambitious, and it may be an indicator of how the administration intends to address issues related to climate change, energy, and jobs at the same time.”
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“As of today, the US has only seven offshore wind turbines — five in a wind farm off Rhode Island’s Block Island, and two more set up as tests in Virginia. But on February 23, the federal government will auction offshore wind leases to utilities or offshore wind energy developers in an ocean region called the New York Bight, off the coasts of New York and New Jersey. The holders of those leases will then be able to set up wind farms in the area that generate up to 7 gigawatts of energy — enough to power about 2 million homes — which would require 600 to 700 turbines.”
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“Those 600 or 700 wind turbines will require people to build turbine components, ship them out to sea, and maintain them once they’re set up. To make that happen, the White House and Transportation Department are aiming to create nearly 80,000 offshore wind-related jobs by 2030 by investing in ports across the Eastern Seaboard — some as far inland as Albany, New York, from where turbine parts will be shipped down the Hudson River to the New York Bight.”
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“The turbines, fishers say, could negatively affect marine life. They’re also concerned that turbine towers may interfere with radar, while no-sail safety zones in the vicinity of turbines may affect their ability to reach fishing areas. The long-term impacts of wind turbines on marine life still aren’t clear, but a study in Europe’s North Sea showed turbine bases may act as artificial reefs for animals like mussels. Late last year, the Energy Department awarded Duke University a $7.5 million grant to study offshore wind’s impact on marine life, the results of which should provide a fuller picture of how turbines might affect fisheries. In the meantime, the federal Bureau of Ocean Energy Management is looking for workarounds, which is why the sale notice for the New York Bight includes provisions aimed at helping fishers, such as 2.8-mile-wide transit lanes for fishing vessels.”
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“The challenges don’t end there: Even if the wind turbines do get built, and even if their potential impacts on marine life are minimized, there has to be somewhere for the energy they produce to go. Transmission lines — those high-voltage cables you see strung up on steel struts across vast stretches of the country — are usually built by regional transmission organizations, and Jacobs says there might not be enough of them to carry all the energy produced by those new turbines.
This is exactly the issue Germany faced in 2020, when a lack of transmission capacity in Northern Germany meant the region had to send some of its wind power to neighboring countries instead. “They had a whole lot of offshore wind arrive at the beach,” Jacobs said. “And then the German utility industry said, ‘Oh, we hadn’t really prepared for this.’”
The Biden administration seems to want to avoid having a similar situation happen in the United States. That’s why the Bipartisan Infrastructure Law includes funding for transmission lines, and the administration announced the Energy Department is launching an initiative called Building a Better Grid that will act as a sort of central planning authority for grid improvements. But it’s unclear if that transmission buildout will happen by the time offshore wind gets up and running in the New York Bight — and the administration makes no mention of distribution lines, or the lower-voltage wires that bring electricity to homes and businesses. Those are usually built in the US by local utilities, explained Kyri Baker, assistant professor of engineering at the University of Colorado Boulder, and they’re often only replaced once they become completely inoperable.”