China taps Biden’s climate law for solar cash

Your guide to the political forces shaping the energy transformation

Nov 01, 2024 View in browser   By Joel Kirkland Illustration by Claudine Hellmuth/POLITICO (source images via iStock) In tiny Wilmer, Texas, one of the world’s largest suppliers of solar panels is building a factory that it says will employ 1,300 local people. In one sense, Trina Solar’s project south of Dallas is exactly what President Joe Biden’s supporters envisioned when he signed the Inflation Reduction Act in 2022. The White House hoped a combination of tax and direct subsidies would unleash a “Made-in-America” clean energy revolution. And that would generate factory investments to revitalize U.S. manufacturing, wrest control of supply chains from China and boost deployment of solar power, wind energy and advanced batteries. But few companies illustrate the trade-offs of this effort more than Trina, which is based in the city of Changzhou in eastern China, Benjamin Storrow writes. China and the United States have been battling over the topsy-turvy solar export market for years. The Biden administration has accused Trina and other Chinese solar panel manufacturers of skirting U.S. tariffs by routing its shipments through Southeast Asia. And now, Trina could net almost $1.8 billion in U.S. tax subsidies over the next seven years if it gets the Texas factory fully running by the beginning of 2025. It is hardly alone. Eight companies linked to China have spent more than $1.2 billion to build 23.6 gigawatts of panel capacity since the IRA passed, Ben writes. Politics of China China’s investment in U.S.-based manufacturing will create jobs for Americans and could help drive down the cost of solar power while cutting climate pollution. But it also inspires fears among U.S. solar manufacturers, who say China’s presence on U.S. soil could sideline their expansion plans. Election Day is four days away. Vice President Kamala Harris and former President Donald Trump have both voiced concern about China inundating U.S. markets with goods such as solar panels. Trina’s strategic move marks an emerging dilemma for whoever occupies the White House in January: Should America reward the companies of a major strategic adversary for creating domestic jobs and expanding clean energy?   It's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Joel Kirkland. Power Switch is brought to you by the journalists behind E&E News and  POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Zack Colman breaks down former Energy Secretary Dan Brouillette's messy exit from the Edison Electric Institute. Power Centers The office of Texas Attorney General Ken Paxton (R) has helped coordinate legal efforts by Republican attorneys general to challenge Biden administration policies. | Eric Gay/AP Photo Republican AG battle plans President Joe Biden’s effort to tackle climate change across government agencies was met by well-organized, litigious foes: Republican state attorneys general. The review of hundreds of pages of 2022 correspondence shows that the chief legal officers in two dozen states — often led by Texas and Louisiana AGs — formed a united front against Biden administration regulation. The AGs coordinated legal strategies to fight energy and climate policies in federal courts where conservative judges were almost guaranteed to see a case and through direct engagement with federal agencies, Miranda Willson writes. As Biden’s agenda took shape, the states planned challenges to auto emissions standards and a Department of Energy appliance efficiency rule. The coordination extended to personnel decisions, such as the appointment of a climate risk officer at the Office of the Comptroller, as well as executive orders on extreme heat and offshore wind. The AGs also weighed in at critical junctures at the Federal Energy Regulatory Commission, an independent agency with a central role in managing a shift to a lower-carbon electric grid. Whiplash at Interior? The Interior Department — a vast agency that oversees public lands, the national parks, Western water conservation and endangered species protections — is sure to witness drastic policy shifts if Trump reclaims the White House in January, write E&E News staff. Trump and his running mate, Ohio Republican Sen. JD Vance, have made “drill baby, drill” one of their key campaign talking points as they repeatedly vow to boost domestic fossil fuel production. Trump has been clear about his plans to use the department to expand energy production, said William Perry Pendley, who served as a senior Interior appointee during the Trump administration. “He’s going to dramatically increase oil and gas drilling to drive down the price of energy,” Pendley said. “He said that it’s going to be his agenda from Day 1.” Cruz fights for his seat Oil and gas is at the center of the race in Texas pitting Sen. Ted Cruz against a Democratic rival who has been rising in the polls. Texas has not elected a statewide Democrat since 1994. Cruz is working to link Rep. Colin Allred to national Democrats, with particular attention on energy. High prices, Cruz said during a recent debate, “are the result of Congressman Allred and Kamala Harris’ war on Texas oil and gas.” In Other News Oil money: Trump and Republican campaign committees have reported receiving an estimated $75 million from oil and gas interests. Quarterly profit: Exxon and Chevron beat third-quarter expectations. Strong output beat weaker oil prices. Subscriber Zone A showcase of some of our best subscriber content. Debris is strewn on the lake in the aftermath of Hurricane Helene on Wednesday, Oct. 2, 2024, in Lake Lure, North Carolina. | Mike Stewart/AP Firsthand experience with Hurricane Helene has not inspired a reckoning with global warming in North Carolina, according to interviews with more than 75 residents in the disaster zone. A federal program that aims to help people pay their energy bills is not focusing on states that are increasingly facing “energy poverty,” according to a study out of MIT. A major oil export terminal planned for the Gulf of Mexico is heading toward federal approval. That's it for today, folks. Thanks for reading, and have a great weekend!   Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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