Energy & Water

Virginia’s HB 2035 would require data centers to report quarterly on water and energy use to the Department of Environmental Quality beginning May 2026.  A Virginia Senator says residential energy customers could see their bills rise by as much as $37 per month by 2040 due to costly infrastructure expansions.

” Virginia’s House Bill 2101 and its companion measure Senate Bill 960, which directs the State Corporation Commission (SCC) to investigate whether non-data center customers are subsidizing data center energy costs. If subsidies are found, the SCC would establish new rules to address the imbalance by Jan. 1, 2026.”

Route Fifty | As data center boom continues, Va. legislators broach new regulations

Opponents to data centers in Ohio argue that data centers consume large amounts of power, receive massive tax cuts with meager job creation, and impact Ohio’s action on climate change. Research says that  data center tax cuts will cost the state $1.6 billion in sales-tax revenue.

Ohio Capital Journal | Serious concerns raised over proliferation of Ohio data centers

This week the Federal Reserve Bank of Dallas said that “Solar, battery capacity saved the Texas grid” during summer 2024. The Dallas Fed also reiterates ERCOT’s forecast that the Texas grid will experience accelerated load growth due to anticipated data center construction and electrification trends.

Here’s an emerging topic: the impact of AI on air quality. A study by University of California, Riverside and Caltech scientists published as a preprint paper concerns AI’s impact on air quality. The paper’s title says it all: The Unpaid Toll: Quantifying the Public Health Impact of AI.

Route Fifty | AI air pollution takes deadly health toll

Add Wisconsin to the list of states addressing forever chemicals. A reboot of SB 312 (2024 | WI) is anticipated in 2025. Does this sound familiar? Texas Attorney General filed suit against a group of corporations concerning forever chemicals.

Attor­ney Gen­er­al Ken Pax­ton Sues Man­u­fac­tur­ers of Tox­ic PFAS ​“For­ev­er Chem­i­cals” for False­ly Adver­tis­ing House­hold Prod­ucts as Safe for Families

Urban Milwaukee | Legislature Will Try Again On Regulating Forever Chemical Contamination

The Wyoming Rural Electric Association is leading a coalition of utilities to limit liability for wildfire damages. Read the draft legislation. The gist is that if utilities mitigate wildfire damages, they can limit their liability. Say a rancher loses his cattle in a devastating wildfire, supporters of this legislation say that  farmers and ranchers could still recoup damages for property damage and lost production. It’s not a new concept, similar legislation has been enacted in Idaho.

WY Public Media | Western utilities are trying to limit their liability when they spark wildfires

Wyoming’s Legislature is now controlled by the Freedom Caucus. Wyoming wins the award for 1st time for everything for this fete. Let’s see which energy issues top the Freedom Caucus wish list: 

Not housing nuclear waste generated by WY power generation in the state. 

Electric rates are too high.

WYOFile | Nuclear waste, tax breaks for coal and oil top Wyoming Legislature’s energy agenda

Amazon web services is relying on AI to make data centers more energy efficient. Amazon Web has a multi-year partnership with Orbital Materials to boost data center sustainability and incorporate artificial intelligence. They also joined Meta, Google, and other tech giants calling for increased transparency about the lifecycle emissions for data center infrastructure earlier this year.  

Utility Dive | Amazon Web Services leans on AI to decarbonize data centers, boost energy efficiency

There’s a kerfuffle in Virginia concerning “Ordinary Virginia customers are subsidizing Big Tech with both their money and their health.” A filing at the Virginia State Corporation Commission says data center growth will drive up costs by 20%.

Route Fifty | Under pressure from the SCC, Dominion reveals the true cost of data centers

The Pennsylvania Legislature failed to pass the reauthorization of consumer protections for utility customers that prevents shutoffs during the harshest weather. The state public utility commission adopted consumer protections to prevent these shutoffs. Who is unhappy? Utilities who lost control over billing in the process.

ABC27 | Utility law will lapse after Pa. legislature deadlocks on expanding consumer protections

Cities in Michigan are challenging the way the state permits large solar and wind facilities. Their appeal to Michigan courts. Michigan’s Democratic legislature removed local control over permitting. And now, here we are. Local governments are saying the state utility commission side stepped the Administrative Procedures Act.

Governing | 79 Communities Challenge Michigan Solar, Wind Farm Permit Rules

” Governor Greg Abbott and the Public Utility Commission of Texas (PUCT) today announced the release of the Texas Advanced Nuclear Reactor Working Group’s final report on Texas’ plan to build a world-leading advanced nuclear power industry to enhance electric reliability and energy security, promote economic development, and unleash new opportunities for the growing Texas workforce. ”

Governor Abbott, PUCT Release Texas Advanced Nuclear Reactor Working Group Report

Governing | Greg Abbott Wants Texas to Be No. 1 in Advanced Nuclear Power

Friendly reminder that the Texas House has a 20 member nuclear caucus.

16 states have taken action against PFAS. This is not solely a list of blue states. States that have passed PFAS bans are Alaska, California, Colorado, Connecticut, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode Island and Vermont. Other limits on PFAS has been enacted in Kentucky, Minnesota, New York, Virginia, and Washington. @goodgoodgoodco

Toyota has revealed its groundbreaking Corolla Cross Hydrogen Concept, a mid-size SUV that uses an innovative engine combining combustion with zero emissions. @techexploererszone

The new President of Mexico has introduced new private sector participation in the energy market. Her parameters for private sector participation include: (1) concessions granted through a bid process to deliver energy and capacity directly to the Federal Electricity Commission; (2) Private sector participation in the electricity generation market is limited to 46%; and (3) Participation in the generation and sale of electricity with a transparent bid processes that demonstrates compliance with the reliability and backup requirements of the National Energy Plan. 

Foley Lardner LLP | Mexico’s New Administration Outlines Private Sector Participation in the Energy Sector

The 1st on-site use of generative AI at a U.S. nuclear power facility is happening folks. In early 2025, Pacific Gas & Electric will deploy generative Ai tech from Atomic Canyon’s Neutron Enterprise at the Diablo Canyon reactor.   PG&E says that well-tuned AI solution could solve an operational issue in “seconds,” rather than hours or days.

Utility Dive | Generative AI deployment at Diablo Canyon is a first for US nuclear power sector: PG&E

Let’s take a peak into the supporting arguments for demand response in New York. Shall we? Supporters say Demand Response will (1) reduce emissions; (2) boost electrical grid resilience; (3) New York City alone could create up to nearly 6.7 GW of demand flexibility in the winter and 1.75 GW in the summer; and (4) demand response needs similar incentives to generation and transmission.

Utility Dive | Demand response programs can help boost reliability, cut emissions in New York, advocates say

 In BP’s earnings report, the company announced it was ending 18 nascent Hydrogen projects.  Earlier this year BP announced it was investing in 10 other Hydrogen projects, but the company is also scaling back those plans. Oil and gas industry has been a significant supporter of Hydrogen development.

Tech Crunch | Oil giant BP is killing 18 hydrogen projects, chilling the nascent industry

This week in the Washington Post they talk about the increase in residential electricity rates because of data center electricity usage. @postclimate

Energy use by data centers in Oregon is said to be the cause of increased residential electricity prices. Prices increased by as much as 50%  Data centers currently consume 11% of Oregon’s electricity.

Route Fifty | Data centers, which require massive amounts of energy and few jobs, have downsides for Alaska

The U.S. District Court for the Western District of Texas ruled in favor of NextEra Energy and LS Power subsidiaries as well as the East Texas Electric Cooperative. The court found Texas utility codes related to the transmission law “are unconstitutional because they violate the dormant Commerce Clause and are therefore invalid and unenforceable, to the extent they grant in-state transmission owners the exclusive right to build or acquire transmission lines in the non-[Electric Reliability Council of Texas] regions of Texas,” the district court said. This follows a similar ruling by the 5th circuit in 2022.

Utility Dive | US district court rules Texas transmission law favoring incumbent utilities unconstitutional

@bloomberggreen posits that an unintended consequence of the Inflation Reduction Act renewable tax breaks is that some Chinese solar manufacturing moved stateside.

A study by Adnoc, Masdar and Microsoft which surveyed more than 400 global leaders points to AI boosting energy efficiency, reducing emissions, and revolutionizing the energy industry. 92% of executives believe AI will have a significant impact on improving energy efficiency by 2030, and 97 per cent expect AI to play a central role by 2050 in developing new energy solutions.

The National | AI will drive decarbonisation and boost energy efficiency, say top executives

We hear a lot about the need for energy to power generative AI. But, here’s a new spin: how much AI is driving energy industry innovation.  90% of all oil and gas companies have invested in AI innovations. Such as,  AI-based imaging technology to identify methane plumes and quantify emissions volumes. Power generation companies were early adopters of AI within the energy sphere for for grid management, energy storage, smart residential and commercial real estate power supply infrastructure, renewable energy supply and demand forecasting, nuclear power plant monitoring, carbon capture, utilization, and storage (CCUS) and more.

Forbes | How AI Is Incrementally Fueling Energy Sector Innovation

Stanford scientists have developed solar panels that work at night by drawing power from the panels cooling at night. They say this can eliminate the need for battery storage.  @businessinsidersa

 UT Austin researchers have identified a new thermal interface material that can reduce the cooling cost of data centers. Researchers estimate the new technology could reduce energy use of data centers by 5%. Data center energy use for cooling accounts for 40% of data center energy use.

A new data center in Denver which is receiving up to $9 million in tax rebates is anticipated to use between 65 and 75 megawatts of power and  805,000 gallons of water a day. Fun fact: Denver is asking its residents to limit water use. Maybe fun isn’t accurate.

Governing | Denver’s New Data Center to Use as Much Water as 16,000 People

The Perryman Group has estimated the cost of transmission congestion in Texas. They estimate that Texas has a $3.65 billion underinvestment in transmission capacity that is costing the state $36.8 billion in gross product and nearly 157,000 job-years lost across Texas between now and 2040.

Rio Grande Guardian | Silva, Perryman: Action vs. Inaction on Transmission: Two Paths for Texas and the RGV

Enerkite is a mobile wind generator that uses a kite attached to a mobile ground unit. They say they can generate five times more power than a turbine, due to the 360 rotation of the high elevation kite @mechabytes

GridStor is building a battery storage facility in Galveston County, Texas that will offer a 220 MW, 440 MWh battery facility, open in the summer of 2025, 10s of millions in tax revenue, & 100 full time jobs.

Stock Titan | GridStor Commences Construction on Galveston County Battery Energy Storage Project

Katy, Texas City Council denied a permit to a battery facility in an industrial area. Citizen comments focused on environmental concerns, a fire that occurred at a battery facility in California, and the proximity of the location to schools. City Council members mention safety concerns raised by citizens, and the loosely regulated environment when discussing the permit. A city council member noted that for battery storage to be effective in blackouts they should be located near residential areas.

Covering Katy | Katy City Council kills battery storage facility designed to help prevent blackouts

  Within days of each other both Google and Amazon announced investments into small modular nuclear reactors to power data centers. This comes after Microsoft announced its intent to invest in power from Three Mile Island nuclear power plant.  Google is signing a contract to purchase nuclear energy from multiple small modular reactors via Kairos Power. Amazon announced it is working with utility Dominion Energy to put a small modular reactor near an existing North Anna nuclear power station in Virginia with  an investment in reactor developer X-energy. Energy Secretary Jennifer Granholm announced the DOE will invest $900 million in small modular nuclear reactors.  @cnbc

Houston Chronicle | Amazon, Google make dueling nuclear investments to power data centers with clean energy

 ChatGPT uses 3x more water than previously thought. A 100 word email using ChatGPT uses 1/2L of water and 140Wh of electricity which could also fully charge 7 iPhone pro max phones. @thetimes

The former FERC member and its longest serving Chair, Jon Wellinghof, joins Neil Chatterjee, a former commissioner and chairman of FERC, to say with a bipartisan voice that they have a way to firm up ” above all energy policy.”  They say the guarantee for an above all energy policy is “[It’s] by leveraging existing regulatory authorizations to make better use of our existing assets and infrastructure — both utility-owned and “behind” the customer meter.” They point to FERC Order Number 2222 and the power of harnessing ” distributed power plants — which can be stood-up, scaled and dispatched far more quickly and affordably than conventional centralized power plants — drive down costs and boost reliability for all the grid’s users.” 

Utility Dive | Unfinished business: The bipartisan appeal of distributed power plants

The U.S. Supreme Court has agreed to hear INTERIM STORAGE PARTNERS, LLC V. TEXAS, ET AL. which is about whether highly radioactive nuclear waste can be shipped into Texas. The issue before the Supremes is whether a federal agency has the authority to approve privately operated, high-level nuclear waste storage sites that are located in a state other than the state where the waste is generated.

You know how EVs use regenerative braking to generate power? A neighborhood in Barcelona is using the braking of trains to generate power. 1/3 of that train generated power is for the trains while the remainder powers the station and its amenities, including EV chargers.  Vienna, Philadelphia and São Paulo, also utilize generative power from trains.

Route Fifty | This city is turning subway trains into power stations

 National Transmission Planning Study 

On Thursday, the U.S. Department of Energy released its  National Transmission Planning Study The conversation piece: interconnection of grids. The study found that building out interregional transmission can produce cost savings. By 2050, it could save $270 billion, a point-to-point expansion would save $380 billion and an HVDC buildout would save $490 billion under a mid-demand scenario that cuts power sector carbon emissions by 90% by 2035.

Incoming study by North American Electric Reliability Corp that will talk about how much power can be transferred by grid region.

Utility Dive | DOE transmission planning study identifies ‘high opportunity’ interregional interfaces

Pennsylvania’s Responsible Customer Protection law is up for renewal this year. The House has added Senate amendments to HB 1077 (2024 | PA) that would add:

• Decreasing the size of a loss of income needed to qualify for payment arrangements;
• Allowing those who are unable to pay because of illness to provide a certificate from a nurse in addition to a physician, physician assistant or nurse practitioner;
• Prohibiting utilities from collecting security deposits from customers earning less than 300% of the federal poverty income level;
• Expanding the length and terms of payment arrangements;
• Prohibiting reconnection fees for those earning less than 250% of the federal poverty level and requiring reconnection fees to be included in arrearages for those earning up to 400%;
• Allowing the Public Utilities Commission to consider protection from abuse orders from other states or written certification by a domestic violence counselor or advocate to exempt a customer from the law.

Pennsylvania Capital Star | Pa. Legislature at odds over details of utility customer protections as year-end deadline looms

A lawsuit that alleges that “Texas gas extraction companies, pipeline companies, and banks siphoned natural gas out of the state, knowing that the upcoming winter would increase demand.” Data from CirclesX,  a Houston-based pipeline analytics company, tracked movement on pipelines that allegedly tracked the movement of gas out of state that then shows how they were able to ” starve gas power plants of power.” This week’s hearing was just the start of this legal process.   KERA News | Market manipulation led to power grid failure in 2021, lawsuit alleges

KERA News | Market manipulation led to power grid failure in 2021, lawsuit alleges

Oklo is on target to begin construction of the 1st commercial U.S. micro-nuclear reactor in Idaho. DOE has given the green light for the the planned reactor at Idaho National Laboratory in Idaho Falls. @cnbc

North Dakota Industrial Commission which consists of the Governor, Attorney General, and Agricultural Commissioner, voted to spend $300,000 for carbon capture education. Funding for the project comes from the Lignite Research Council, Oil and Gas Research Council, and Renewable Energy Council and has been approved by the Legislature. The state projects many upcoming large projects and wants to lay the groundwork explaining carbon capture. Preemptive state action- we like seeing that. 

Governing | North Dakota Commits $300,000 for Carbon Capture Education

14 banks and financial institutions announced their support for tripling the amount of nuclear power generation by 2050. The group of financial institutions in the convening include: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co., Segra Capital Management, and Societe Generale.  

Utility Dive | Banks endorse goal of tripling nuclear capacity as Climate Week NYC begins

DOE is putting up $4.2 million for floating wind generation. The funds will support a U.S.-Danish consortia developing improved, more affordable floating offshore wind. Webinar on October 17th at 12PM ET. 

We’ve talked about the $944 million PG&E paid due to bad storms and wildfire mitigation. This $944 million will translate to an increase on utility bills by $6 per month for 17 months. 

governing | $6

New Mexico is using AI and satellites to identify water leaks. The state estimates that water systems in the state lose between 40% and 70% of their treated drinking water due to breaks and leaks in their infrastructure.

Route Fifty | Water-challenged state uses AI, satellites to find leaks

AB2316 has been signed by California’s Governor. This bill, the California School Food Safety Act, prohibits schools from offering foods or beverages containing red dye No. 40, yellow dyes Nos. 5 and 6, blue dyes Nos. 1 and 2, and green dye No. 3.

Yahoo News | State legislature passes new bill banning array of common food additives: ‘The point of this bill is to encourage manufacturers’

Pennsylvania’s legislative priorities include reauthorizing utility shut-off protections. The program expires every 10 years. This year’s reauthorization bill is HB 1077 (2024 | PA).

WPSU | Public transit funding, utility protections, and more top Pa. legislature’s fall to-do list

Maine has officially moved forward with a requirement that no utility ratepayer funds shall be used for politics. This includes contributions or gifts to political candidates, political parties, and political or legislative committees; to a trade association, chamber of commerce or public charity; for lobbying or grassroots lobbying; or for educational expenses, unless approved by the PUC as serving a public interest. A 2023 bill required the Maine Public Utilities Commission to commence rule making. Connecticut and Colorado also passed similar legislation in 2023.

Governing | Maine Utilities Can No Longer Spend Ratepayer Money on Politics

The National Association of State Energy Officials published a guide concerning long term energy storage. Included in their analysis are the California Energy Commission’s Long-Duration Energy Storage grantmaking program, the Utah Office of Energy Development’s support of a planned hydrogen storage facility, & Colorado’s Microgrids for Community Resilience grant program. The report includes battery storage that could offer power from two hours to a 100 hours.

Wired magazine connects the dots between bitcoin mining to shore up the Texas electric grid and making wind and solar more attractive. @wired

 The University of Houston has joined the Department of Energy’s Battery Storage Innovation HUB. The group that U of H joined is called the Energy Storage Research Alliance and includes 50 academics at different institutions of higher education.

The price of West Texas natural gas during July reached negative 85 cents. Yes, producers were paying people to take the natural gas.

Bank of America is making its first-of-its-kind investment in carbon capture by putting $205 million into a carbon capture project in North Dakota in exchange for tax credits. The tax credits stem from 2022 federal legislation that allows project developers to tap credits even with little to no profit. The company says it can capture 200,000 metric tons annually.

WSJ | Bank of America Bets on Carbon Capture With Big Tax-Credit Deal

Well hello there, Gas Electric Reliability for America. Meet the new coalition  of industry and regulatory officials  that says “its goal is to bring more transparency to opaque natural gas markets and the readiness of gas-burning generators to keep electricity flowing during periods of extreme cold.”

Politico | Coalition pushes for answers for extreme weather failures

83% of new solar installations will be on farm and ranch lands by 2040 according to the American Farmland Trust.

In 2001 coal  was tops for power  generation in the majority of states. In 2016, natural gas took its place. In the Pacific Northwest, hydroelectric generation leads the way. In 4 states, nuclear generation dominates. Maps of electric generation @nytimes

2.3% of the U.S. energy demand was used by cryptocurrency entities. “The Biden administration has begun requiring some cryptocurrency producers to report their energy use, reflecting concerns about grid strain during peak demand hours, energy prices and CO2 emissions.”

According to the World Resources Institute’s Water Risk Atlas of the 18 approved green hydrogen projects, 1/5 are located in water stressed areas. “The total water use of hydrogen “is not the big deal,” said Jack Brouwer, an engineering professor at University of California-Irvine. “The water challenge is that where we have good primary energy from wind and solar, we do not have good water (supply) necessarily.”

Route Fifty | A fifth of U.S. green hydrogen projects eyed for water-stressed areas

A committee in Virginia is studying the impact of data center tax breaks and the state’s electric grid. Included in the study are: 

(1) recent and expected trends in factors impacting data center industry growth and forecast future growth of Virginia’s data center industry; 

(2) impacts on Virginia’s natural resources, as well as historic and cultural resources; 

(3) assessing the impacts of the data center industry on current and forecasted energy demand and supply in Virginia, including energy rates paid by customer classes; 

(4) impact on local revenue and local residents, including concerns such as noise pollution, decreasing property values, and the adverse visual impact;

(5) identifying considerations around the construction and siting of data centers; and

(6) determine if Virginia’s data center tax exemption could be improved, including whether the exemption could be better targeted.

In Virginia, Dominion Energy said the state will need new gas generation to handle the energy needs of datacenter in the state. The Virginia Legislature also wants to address datacenter and energy use with legislation that would tie data center tax breaks to their energy standards.  Data centers would only qualify for tax breaks if they maximized energy efficiency and found renewable resources. 

In Georgia, the Governor vetoed a bill, HB 1092 (2024 | GA) that would halt tax breaks for data centers.

Route Fifty | Data centers demand a massive amount of energy. Here’s how some states are tackling the industry’s impact.

A revision to the Clean Water Act requires states to consider tribal treaty rights. A dozen states have joined a lawsuit that seeks to get the new EPA rule thrown out. The states challenging the rule are Alaska, Idaho, Iowa, Louisiana, Montana, Nebraska, North Dakota, South Carolina, South Dakota, Texas, Utah and Wyoming. 

Route Fifty | In long-sought change, states must consider tribal rights when crafting water rules 

The Institute for Energy Research posits, Will the Energy Transition Make Storage Batteries a Profitable Trade? It points to billions invested by Wall Street, federal tax credits, and a surge in solar and wind power. Texas has 46 gigawatts of battery storage planned and California has 36GW planned. The Institute also points to battery storage use during Hurricane Beryl.

Who regulates privately built power lines, such as those built by oil and gas companies? It appears that the State of Texas trusts operators to maintain those lines. According to the Texas Tribune, “the state agencies that regulate the energy industry and the power industry said they’re powerless to regulate power lines in the oil patch.” Let’s watch and see if the Legislature addresses this issue or will the Railroad Commission adopt a rule concerning the role of energy operators for electrical problems and notifying the Texas Public Utility Commission if power needs to be cut.

We have talked about schools in Arkansas that installed solar and used the energy savings to boost teacher salaries. Riffing off this, Pennsylvania has created a grant program to fund solar panels at school facilities. HB1032 (2024 | PA)

San Diego County has adopted BESS standards for battery storage in wake of recent battery fires. BESS can rapidly charge or discharge in a fraction of a second.

“Sunrun and Baltimore Gas & Electric have launched a small vehicle-to-home grid support program in Maryland utilizing Ford F-150 Lightning trucks to demonstrate how bidirectional electric vehicle charging can ease grid stress and add value for customers. “

Sunrun | Sunrun Launches Nation’s First Vehicle-To-Home Grid Support In Maryland Using Ford F-150 Lightning Trucks

Utility Dive | Sunrun, BGE launch first US electric vehicle-to-home virtual power plant

This new NEI paper says the best way to power data centers is nuclear power. Why? According to the paper, Colocating new hyperscale data centers with existing nuclear power plants can significantly reduce project costs and delays by eliminating the need for new transmission infrastructure and grid interconnection.

Utility Dive | xisting nuclear power plants are best behind-the-meter option for data centers: NEI paper

 California’s 10,000 MW of battery power, enough to power 10 million homes for several hours, and the state’s renewable resources bolstered the state’s power grid during its record high heat. Even with all time record high temperature of 124F in Palm Springs, the state avoided emergency alerts and calls for voluntary conservation.

Governing | Big Batteries Were Key to California Grid Surviving Recent Heat Wave

The International Energy Agency has estimated there is a $23 trillion global marketplace for clean energy and clean energy projects. China controls 80 percent of the solar panel business. Because of IRA, there are 40 solar-related factories & 40 battery factories in the works in the U.S. 80% of capacity added in 2023 was from clean energy projects.

Governing | Red States Are Winning in a Green New World of Economic Growth

Vermont has dedicated its $89 EV vehicle fee to building EV charging infrastructure.

Governing | New Vermont Fee Will Help Pay for EV Charging Infrastructure

According to the Energy Institute’s Statistical Review of World Energy, China accounted for 55% of all renewable generation additions in 2023, and was responsible for 63% of new global wind and solar capacity. While global primary energy demand rose by 2% in 2023 from 2022, to 620 EJ.

Reuters | Fossil fuel use, emissions hit records in 2023, report says

 The Governors of Maryland, Illinois, New Jersey and Pennsylvania have informed PJM Interconnection, the grid operator for 13 states plus the District of Columbia, that they want a “robust” planning process that includes state input and greater use of carbon-free electricity. The governors also are calling for “close coordination” which they say is necessary to achieve “a collective vision.”

Route Fifty | Governors seek more say over grid planning process

 The future of data centers and small nuclear reactors as described by Bill Gates, “There is a more direct connection, though, which is that the additional data centers that we’ll be building look like they’ll be as much as a 10% additional load for electricity. The U.S. hasn’t needed much new electricity — but with the rise in a variety of things from electric cars and buses to electric heat pumps to heating homes, demand for electricity is going to go up a lot. And now these data centers are adding to that. So the big tech companies are out looking at how they can help facilitate more power, so that these data centers can serve the exploding AI demand.” 

NPR | Bill Gates is going nuclear: How his latest project could power U.S. homes and AI

The DOE this week announced $900 M in funding for small modular nuclear reactors. The plan is to fund up to $800 million to support one or two “first-mover teams” with plans to deploy a first small modular reactor (SMR) plant and a multireactor project. DOE projects that the country will need anywhere from 700 to 900 gigawatts of additional clean, firm electricity capacity to reach net-zero emissions nationwide by 2050.

E&E News at Politico | DOE floats $900M to build advanced reactors

Bill Gates is prepared to put billions into nuclear power, including small nuclear reactors, to meet growing electric needs. @bloombergbusiness

By 2038, it is estimated that power usage in the Permian Basin will increase 7 fold. This 7x increase is based on “S&P Global Commodity Insights had estimated Permian Basin ERCOT load at 3.4 GW in 2022, projected to grow to 11.9 GW by 2032.” ERCOT’s Permian Basin Reliability Plan, the “official” usage estimate is expected in July. A draft of this plan estimates ” that load would approach 23.7 GW by 2030 and 26.4 GW by 2038.”

S&P Global | Texas grid stakeholders mull plans for massive power demand in Permian Basin

Texas Attorney General Opinion KP-0467 tells us that a license is required if you are a person who negotiates a wind power lease because Section 1101.005(9)(A) of the Occupations Code does not include wind in the exceptions to the license requirements.

Update to:

Is a license required to negotiate a wind power lease?

• December 1, 2023

Get your briefs ready, the Texas Attorney General is set to opine as to whether a real estate license is necessary to negotiate a lease for wind power. RQ-0523-KP

Columbia Law School Sabin Center’s Opposition to Renewable Energy Facilities in the United States report notes 378 renewable energy projects in 47 states that encountered significant opposition. Plus an additional, “395 local restrictions across 41 states, along with 19 state-level restrictions, that are so severe that they could have the effect of blocking a renewable energy project.” Restrictions for the 2024 report are up 73% over May 2023 report.

We’ve chatted about the impact AI will have on energy demand, but we don’t talk a lot about  the use of AI in the energy sector.  AI use in the energy sector is said to be a market opportunity estimated at up to $13 billion. Regulatory issues concerning AI use by the energy sector include: securing data, implementing robust machine learning operations and data management practices to scale RAI safely and reliably.

Utility Dive | Responsible AI in energy: Balancing efficiency, sustainability and trust in a high-stakes industry

University of Michigan’s Center for Local, State, and Urban Policy polled local governments about their thoughts on energy development. 86% strongly or somewhat support rooftop solar infrastructure development with 89% support in urban areas; 60% favor new electric transmission lines; 42% of officials are for new natural gas power plants and large-scale solar installations;  and 27% for large-scale wind projects.

Route Fifty | Support for rooftop solar outpaces other energy infrastructure

Yesterday,  U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) announced the FY24 Solar Energy Supply Chain Incubator funding opportunity.  It will provide up to $38 million for research, development, and demonstration (RD&D) projects that de-risk solar hardware, manufacturing processes, and software products across a wide range of solar technology areas. Apply here: Apply on EERE Exchange

91% of European climate solutions are nature based. This includes maintaining water reserves and maintaining parks, urban forests, and encouraging green roofs. @theneedtogrow

SB 1289 (IL | 2024 ) establishes rules for carbon capture in Illinois. The bill requires soil and air monitoring at injection sites and creates a fund to address environmental concerns. The legislation was pushed by Capture Jobs Now — a coalition of business, labor and agriculture groups.

My Journal Courier | Illinois sets rules for carbon capture and sequestration

21 states and the federal government have agreed to accelerate improvements to the electric transmission and distribution network, which are critical to meeting the country’s objectives for affordable, clean, reliable, and resilient power. All participating states are led by Democratic Governors: Arizona, California, Colorado, Connecticut, Delaware, Hawai‘i, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Wisconsin.

States agree to:

Prioritize or accelerate efforts that support the adoption of modern grid solutions to cost-
effectively meet growing electric grid needs, including efforts that increase capacity and
maximize utilization of existing infrastructure;
• Explore opportunities at the executive and legislative levels to address capacity
challenges facing the grid in an expedient manner;
• Explore pathways to facilitate adoption of high-performance conductors and grid
enhancing technologies, which may include considering these technologies in grid
planning, financial incentives, performance standards, and updated cost-effectiveness
criteria;
• Maximize the use of available Federal financial and technical assistance;
• Help assess and communicate the potential benefits of modern grid technologies to
partners and stakeholders within and across states, including local governments and the
public;
• Share successes, challenges, lessons learned, and best practices with other states.

The Hill | White House and 21 states to announce grid modernization program

Utility Dive | 21 states, DOE launch initiative to spur grid-enhancing technologies, advanced conductors

The Southwest Research Institute is piloting power generation via CO2 sequestration. When CO2 is acting like a liquid, in gas form, the movement of the CO2 can pass through equipment, like blades on a wind turbine, to generate electricity. By the end of summer 2024, the carbon-powered turbine will produce 5 MW of power.

San Antonio Express News | Could a CO2-powered turbine in San Antonio be the future of power generation? SwRI is working on it.

Earlier this month, the Speaker of the Texas House released interim charges which included studying hydrogen generation. This week,…”Over the past four months, developers of technology to produce and distribute low-emission hydrogen [energy] have raised more than $1 billion in venture investment, per Crunchbase data. That’s already more than two-thirds the total raised in all of last year.”

CrunchBase | Hydrogen Energy Is Getting A Heavy Infusion Of VC Funding

Illinois is putting $1.6 million into community solar that is justice focused. These community solar programs benefit traditionally under-resourced Black, Brown and Indigenous communities in the greater Chicago. Funding comes via the Illinois Climate Bank.

GoodGoodGood | Illinois just gave $1.6 million to ‘justice-focused’ community solar projects

Tampa Electric is proposing a rate structure that would shift electric rate burden to consumers. ” [A] typical household would be charged at least $200 more annually for base rates over what it’s paying now.” Tampa Electric credits a 2021 settlement that shifts the rate. Local headlines include “Tampa Electric proposes residents pay millions more so big companies save”

Tampa Bay Times | Tampa Electric proposes residents pay millions more so big companies save

Governing | Florida Utility Proposes Shifting Costs from Big Corps to Residents

The Speaker of the Texas House called for an interim study concerning hydrogen including hydrogen electric generation. Also this week, the DOE Hydrogen and Fuel Cell Office released its plan that includes a goal of cutting the cost of clean hydrogen production to $1 per kilogram by 2031.

In February we talked about California’s fixed charge electricity rate plan. This week the California Utility Commission authorized a flat fee of up to $24.15 with cuts to electricity costs by 5-7 cents per kilowatt-hour. There are no new costs nor fees. What does change is how costs are divvied up Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric bills.

SacBee | California approves controversial electricity rate change. What’s coming to your bill?

Anatomy of a Low Income Energy Program

• February 15, 2024

In 2023, California legislators passed AB 205 (2024 | CA) to study “fixed charge” energy plans that tie electricity bills to income levels. As a result, the 3 major investor owned utilities propose: income-based fixed charges for households earning $28,000-$69,000 would be $20 to $34 per month. Those earning $69,000-$180,000 would pay $51 to $73 per month, and those earning more than $180,000 would pay $85 to $128.

In Q1, major tech companies, Microsoft, Alphabet, &Meta, spent more than $40 B on data centers, which require incredible amounts of electricity to power. @economist

State legislators are considering rolling back tax breaks for data centers because of their impact to electric grids. CT, GA, and SC are considering pulling back tax breaks. MD and MS are working to add tax breaks for data centers.

Route Fifty | States rethink data centers as ‘electricity hogs’ strain the grid

“The U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) intends to issue multiple funding opportunity announcements (FOAs) totaling over $100 million for field demonstrations and other research to support better planning and operation of the electric grid. “

T& D Operations | DOE To Invest Over $100M for Field Demos, Research for Grid Planning and Operations

According to  Enverus Intelligence Research:

• Far West Texas power demand will more than double by 2040 because of electrification trends and cryptocurrency mining growth. With this increased load comes a need for additional generation buildout, otherwise power prices will rise significantly.
• Without an increase in levels of queued generation in ERCOT’s Far West load zone, EIR expects net exports to continue to decrease. This presents an opportunity for generation within the region to expand capacity to meet peak load and export to East Texas.
• Natural gas combustion, specifically compression, is the most practical emission source to electrify by connecting to the grid, as these emissions mostly come from stationary sites with long expected lives.
• A fundamental shift began in 2022 as load growth increased relative to wellhead gas production. This was due to early electrification efforts in the Permian Basin and a migration of cryptocurrency mining load to Texas following China’s crackdown on miners in mid-2021.

Rigzone | Electrification, Crypto Could Threaten West Texas Grid in Future

To power needed data centers, Microsoft is looking to renewable energy. Canada’s Brookfield Asset Management and Microsoft are partnering to develop new wind and solar farms to bring 10.5+ gigawatts of new renewable energy capacity in the U.S. and Europe from 2026 to 20230.

Reuters | Microsoft, Brookfield to partner on renewable energy projects

Meet Whisper Valley near Austin, TX. Whisper Valley is a neighborhood that utilizes solar, heat pumps and geothermal energy. The “communitywide geothermal grid that pulls heat from the ground to warm buildings in cold weather and pumps heat out of buildings and back to the ground to cool them in hot weather.” 

WSJ | Underground Thermal Energy Networks May Be About to Have Their Moment

“The U.S. Department of Energy (DOE) today opened applications for Round Two of the Renewable Energy Siting through Technical Engagement and Planning (R-STEP) program. This opportunity will award up to $12 million—funded through the Inflation Reduction Act—to support the creation or expansion of state-based programs or initiatives that improve renewable energy siting processes at the state and local levels.   “

DOE | Funding Notice: $12 Million Available to Expand Capacity for Renewable Energy Planning, Siting, and Permitting

The Department of Energy awarded Sunvapor, a Pasadena, CA company working in the Permian Basin in Texas and New Mexico, to desalinate water in the oil and gas industry. The company  uses “thermal energy from stored solar steam has the potential to provide high-efficiency, low-cost treatment for wastewater that is too salty for reverse osmosis.”