StopPATH WV
  • News
  • StopPATH WV Blog
  • FAQ
  • Events
  • Fundraisers
  • Make a Donation
  • Landowner Resources
  • About PATH
  • Get Involved
  • Commercials
  • Links
  • About Us
  • Contact

Here's Why Grain Belt Express Must Be DOGEd

3/11/2025

1 Comment

 
Although DOGE isn't officially a word that refers to cutting the fat out of government yet, I'm turning it into a verb.  DOGEd:  verb - to eliminate from government spending programs. Example - Grain Belt Express has been DOGEd.
Picture
Missouri Attorney General Andrew Bailey wrote a letter last week asking the new Department of Government Efficiency (DOGE) to investigate the U.S. Department of Energy conditional loan guarantee for Grain Belt Express in the amount of $4.9B.
“In the waning, chaotic days of the Biden Administration — when the former president’s mental decline had grown to such a severe state that we now know he was not actually running his own White House and often signed documents without even knowing what they contained — left-wing bureaucrats seized the opportunity to advance their radical ‘green agenda,'” said Attorney General Bailey. “In the shadows of this confusion, far-left deep staters advanced a $4.9 billion green energy federal loan guarantee boondoggle to bankroll the Grain Belt Express (GBE), one of the most egregious abuses of taxpayer dollars in recent memory.”
Grain Belt Express isn't even eligible for the loan guarantee in the first place!  From my recent comments on GBE's draft environmental impact statement:
The first paragraph of the Executive Summary states that in order to qualify for a loan, the project must be eligible under Section 1703 of Title XVII (the Clean Energy Financing Program), which defines eligible projects as those that, “avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases [GHGs]; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued” (Public Law [P.L.] 109-58, Section 1703(a)).
The DEIS makes this presumption: “The Project could also help reduce overall GHG emissions by allowing new renewable energy projects to access the electric grid, potentially leading to the replacement of existing fossil-fuel power plants, while providing additional power to expanding renewable energy markets.” (Table 3.1.1). Coulda, woulda, shoulda. This is a wish list that is not backed up by facts. The DEIS does not name or study the projects that could use Grain Belt Express to access the electric grid and the DEIS determines they are not reasonably foreseeable actions and therefore are not included in the cumulative effects analysis. (Sec. 4.3.2.2).


Here’s the bottom line. Without signed legal contracts with generators, it cannot be presumed that Grain Belt Express will transmit renewable energy from wind or solar generators. Under its Negotiated Rate Authority from the Federal Energy Regulatory Commission (FERC), Grain Belt Express may negotiate contracts with customers who will pay the company to use its transmission capacity, either generators or load serving entities.
Grain Belt Express has not made a compliance filing demonstrating to FERC that is has signed contracts with any generators, in Kansas or elsewhere, therefore any generator may negotiate a future contract, including those that use fossil fuels. It is just as likely that a new or existing gas- or coal-fired generator may sign a contract as a new solar or wind generator. Grain Belt Express may not discriminate against generation types when negotiating contracts and cannot evaluate connection requests using generation source as a factor. All sources of generation must be allowed to negotiate contracts under open access transmission rules.
Because potential generators have not signed contracts with Grain Belt Express, it simply cannot be determined that Grain Belt Express will reduce greenhouse gases as required to qualify for the loan. Furthermore, without signed contracts with generators, Grain Belt Express is just a transmission line. Transmission lines, by themselves, do not reduce greenhouse gases. A transmission line that is not connected to a generation source is just like an extension cord that isn’t plugged into anything. Grain Belt Express does not reduce greenhouse gases and therefore it is not eligible for the proposed loan.
And then let's think about GBE's merchant transmission status a bit, shall we?  Merchant transmission is a speculative, supplemental transmission project that is not needed by consumers for any reliability, economic, or public policy purpose.  No regulator or grid planner has ordered the building of GBE.  Therefore, its owners are speculating that it might become useful in the future.  Because there is no need for GBE, it must fund itself.  Transmission that is actually determined to be NEEDED is paid for by captive consumers, however GBE isn't needed and must be fully funded by private investors.  Those private investors speculate that voluntary customers for GBE will materialize at some point in the future and provide enough revenue to pay for the transmission line and create a profit for the investors.  If there are no future customers, then the cost of speculating on GBE becomes the responsibility of the investors who willingly took on the risk of building a project with no customers.

Why is the federal government backstopping this investment risk for private investors to the tune of $4.9B?  Merchant transmission projects can only put risk on their investors, not captive electric consumers, therefore why are the captive American taxpayers suddenly shouldering the risk of this project?  It's too risky for any captive group, whether it's electric consumers or taxpayers, and that explains why it is a speculative venture of voluntary investors.  If it doesn't provide any benefits for consumers, then it's not our responsibility to pay for it.  It's strictly a for-profit speculation for private investors.

As we know, the U.S. Department of Energy hasn't done such a great job vetting speculative ventures in the past.  One of the most famous may be Solyndra, who presented fake contracts to back up its DOE loan and then couldn't produce any revenue to repay.  The taxpayers ended up giving Solyndra $500M in monopoly money to build a factory that never produced a single thing.

News Flash!!!  Grain Belt Express does not have enough signed contracts to make its project financially viable.  The DOE should not be gambling on this historically unsuccessful project to the tune of $4.9B!

And why did the DOE Loans Program Office give GBE a "conditional" approval right after the November election?  Obviously GBE had not completed the required steps to be out right approved, so why was "conditional" approval necessary?  And why is that even a thing in the first place?  It's either approved, or it's not.  Conditional approval doesn't mean a thing, especially when applied in a baldly political context.  Grain Belt Express is not ready for a taxpayer backed loan and its prospects for repaying are slim to none.

Grain Belt Express must be DOGEd.
1 Comment

U.S. Department of Energy's Spectacular Public Engagement Failure

2/22/2025

1 Comment

 
As you probably know, Grain Belt Express has applied for a $4.9B loan of taxpayer funds from the DOE.  As part of DOE's evaluation of GBE's loan application, the DOE must perform an Environmental Impact Statement (EIS) to inform the public about the environmental impacts of granting this loan to build the project.  However, before the required EIS was completed, DOE granted GBE a "conditional" approval in the waning days of the Biden administration.  We're just going through the motions now!

In early 2023, the DOE opened the EIS process by engaging the public in what's known as Scoping.  The task was to get public input on what should be studied.  As part of this task, DOE was required to notify the public and impacted communities about the study and gather their input.  DOE did some public relations and sent out mailers to impacted individuals.  After the comment period closed, DOE put those comments together in a report.

And then DOE ignored that report and prepared a Draft Environmental Impact Statement for Grain Belt Express that was announced on January 17, 2025, just days before Trump took office.  The DOE set a very short 45-day comment period for the public to submit their comments and/or corrections on that 400+ page report.  And then they didn't bother do to any public relations with the media or notify the interested persons who had commented in the scoping phase.  It would have been real easy to send a press release to local media outlets and/or mail a notification to all the people who commented the first time.  DOE already had their names and addresses.  But DOE chose not to do that.  It is only through grassroots connections that word of GBE's DEIS spread to impacted communities.

DOE has tried to check the "public engagement" box by holding limited meetings across the project area, along with two online webinars.  Disaster!

There were only 4 in person meetings scheduled across the project area, 2 in Kansas and 2 in Missouri.  Any impacted person would have had to travel up to 2 hours in the dead of winter, battling bad weather the whole way, to attend.  Only a handful of people braved Mother Nature to attend.

The 2 online meetings were held last week, and what a clown show they were!

Many people had trouble accessing the Microsoft Teams platform on which the meetings were conducted.  Who did DOE think it was dealing with here?  Teenage computer geniuses?  The actual audience was composed of older citizens, including many farmers, who have trouble with computers in general on a good day.  Those who managed to connect (I counted 50 something in the meeting I attended, and probably half of those were DOE and GBE employees) were further flummoxed by bad internet connections and technical issues, which made participation impossible.... including me.  I must be ready for the retirement home, or maybe DOE's platform wasn't compatible with Macs.

The meeting began with an explanation that if you had a question, you should submit it using the Q&A feature on the tool panel.  Problem!  I did not have that feature!
Picture
We were told that if we wanted to make a public comment, we should raise our virtual hand. Got that, at least!

Next DOE made us sit through a pre-recorded video presentation that probably ran about 20 minutes.  Then they opened the meeting to public comment.  Wait!  I'm still wanting to submit a question!  So, I raised my hand.  When called on, I explained I did not have the Q&A tool but wanted to ask some questions.  They allowed me to proceed... well at least until I asked a question they did not want to answer.

First, I asked if DOE had determined how many contracts (dollar amount) GBE must have in place to guarantee repayment of the loan.  No, they have not.  But then there was some blather that such consideration was not part of the EIS.  I informed them that the EIS talked about "offtake and interconnection" agreements in several places, but they still refused to answer.  Next, I asked them if it was DOE's finding in this report that GBE avoids or reduces or sequesters air pollutants and greenhouse gases, and if so, please explain how GBE, which is, by itself, nothing more than a giant extension cord not connected to anything, accomplishes this goal.  The loan is based on GBE accomplishing this.

That's when they pulled the plug and told me that since other people were reporting that they were able to see and use the Q&A function (who are these people? DOE and GBE employees?) that they wouldn't answer my question.  I was instructed to email my questions.  And then they turned off my microphone.  I did try to email them after the meeting, but have received no response.

Public engagement failure #1.

Next, a gentleman from the Missouri Attorney General's office made a fabulous comment regarding GBE's actions in Missouri and chastising DOE for the way it has carried out this process.  He was the only one I heard who successfully used DOE's platform to participate.

Next, GBE called on someone named Karen, who had raised her hand.  Except they couldn't hear her.  She could not connect to make her comment.  Then DOE moved on to the next raised hand, someone with the screen name "Me."  Me also could not make the platform work to make his comment.  DOE spent an uncomfortable 10 minutes or more toggling between Karen and Me trying to get some audio to work.  Send in the clowns!!!  Finally one of the two was able to connect and asked a question about the project's route in Callaway County.  He admitted he had meanwhile submitted the question to the Q&A, so they skipped over him and called for more comments.  Crickets.  After a few more minutes of awkwardness, DOE thought it might re-run the 20 minute video presentation "for anyone just now joining us."  Way to fill the second hour of your unsuccessful virtual meeting, DOE!

By this time, my patience had long since absconded, so I checked out.  I have no idea if anyone ever managed to answer any questions I couldn't see, or connect to make a verbal public comment.

DOE promised to post a recording of these webinars online, but I haven't seen them yet.  When (if) they show up, they are evidence of DOE's complete and utter failure at public engagement.

Why is the DOE still being allowed to operate under its secretive, partisan, public engagement sham developed under the Biden administration?  Hello?  Elon?  Chainsaw needed here!

And here's something odd... check out the "transcript" of the February virtual meetings.  Go all the way to the end for the comments of Jigar Shah, who introduces himself as the Director of the Loan Programs Office, and then proceeds to cheerlead for government backed loans for experimental projects for a couple minutes.  Sorry, Jigar, but you've been FIRED!  I don't remember his comments from the video, so it looks like he got cut and not replaced with comments from the current Director.  Speaks volumes, doesn't it?

Comments on GBE's EIS are still due March 3.  Get writing!  See instructions under How To Provide Comments tab at the top. 
1 Comment

GBE's Loan Is Frozen... Or is it?

2/6/2025

2 Comments

 
The trade press is gushing about the possibility that freezes on DOE activity could derail energy projects.  We could only be so lucky!  The money DOE was so eager to give away after the election is yours!

The corporate media is intent on trying to find a way to grease the giveaways so that they are not thoroughly examined by the new administration.

This piece in Utility Dive talks about a lot of transmission projects that are now threatened, but conveniently avoids mention of Grain Belt Express, perhaps the most egregious of the conditional loan guarantees.  Utility Dive says:
Recipients of low-interest LPO loans “incur lower financing costs for their qualifying infrastructure projects than if they had used commercial capital markets [and] will pass along the savings to customers”
Apparently LPO is oblivious to the fact that Grain Belt Express is a merchant transmission project... or maybe it simply doesn't understand what that means.  Any savings from low-cost government financing doesn't get passed along to GBE's customers, it goes in Michael Polsky's pocket!

A merchant transmission project is a speculative, supplemental transmission project.  It isn't needed for reliability, economic or public policy purposes and therefore it has no captive customers at existing utilities.  A merchant's speculation comes from its bet that if it builds a transmission project, it will be so valuable that customers will volunteer to pay for it in the form of capacity contracts.  That contract is like a toll to use the transmission line, much like you pay tolls for private highways.  The price that customers would be willing to voluntarily pay for GBE's transmission capacity is dependent upon the market -- what do other transmission options cost?  How much additional transmission would be necessary to actually get the energy to load?  GBE's contracts don't include energy.  Any transmission customer would have to purchase that separately from a generator near one of GBE's three converter stations.  The cost of the energy also figures into the market price of GBE's transmission.  The amount a voluntary customer would pay for capacity on GBE is set by the market, not the cost to build and operate GBE.

A low-cost government loan may lower the cost of the transmission project, but it cannot change the market price of transmission.  Since GBE's profit comes from the difference between what it costs to build GBE and what customers will pay to use it, lower financing costs will simply lower the cost to build and increase GBE's profits.  GBE is interested in building the cheapest project possible in order to increase its profits.  That's where the money is made.  So, I ask, what is the benefit to the citizens from this taxpayer loan?  There isn't any.

But yet LPO is still on a crash course to get GBE's Environmental Impact Statement completed ASAP.  After all, this guy has to keep to his little schedule...
,Senator Hawley recently sent another letter to new Secretary of Energy Chris Wright asking why the DOE is proceeding with this loan when the Acting Secretary clearly paused all projects.

And about that Draft EIS... time is running short to get your comments in!  Find something within the report that you'd like to address and have at it!

I found it interesting that DOE doesn't seem to understand what merchant transmission is, as well as its discussion of the non-existent generators in Western Kansas.  DOE speaks with forked tongue!

Meanwhile, GBE has filed a bunch of condemnation suits in Missouri.  How did GBE get so far over its skis?  According to the information provided in the Draft EIS, GBE doesn't have any customers except for the Missouri municipalities that agreed to buy less than 5% of the project's capacity.  Obviously that tiny revenue stream will not be enough to make the project economically viable.  And what is our government thinking providing a loan to a company without enough contracted revenue to repay the loan?  Is this some kind of taxpayer-funded charity for one of the richest Democratic campaign donors in the country?  Quick, someone call in the DOGE!!  The Grain Belt Express is the second costliest "conditionally approved" project on LPO's list.  We could save $5B (that's BILLION) by denying GBE's taxpayer funded loan guarantee.

But you know what's really galling?  GBE's biggest fan telling landowners to just give up and sign easements.
Although it may seem profitable for landowners to reject offers and hold out for 150% compensation, going to court may be costly and not worth the risk, said James Owen, director of Renew Missouri, a local clean energy nonprofit organization.
“I do not believe it is going to be in anyone’s best interest to challenge this in court,” he said. “They’re going to have to pay attorney fees on that. It’s going to be dragged out."
Owen is literally the LAST person a landowner should turn to for legal advice.  Who thought he made a credible source for landowners?  He should shut up and sit down because my experience has been that landowners find him to lack character.  And that's being nice (which is more than he deserves).  Don't need to slum in the mud with Owned.

​And let's end with this little blast from the past:
Picture
No customers, no project.
2 Comments

Grain Belt Express Revelations

1/19/2025

0 Comments

 
Picture
Grain Belt Express made several revelations last week at a Kansas legislative committee meeting.  It was quite apparent that GBE realized that the NIETCs severely damaged its reputation and project prospects in Kansas (and any other state where Invenergy is trying to build transmission).  Your complete opposition and swift action on the proposed NIETCs gave GBE a real black eye.  GBE is now rightfully terrified that the welcome mat is going to be yanked out from under them in Kansas.  With such a massive uprising of the people, GBE's golden reputation in Kansas may be waning.  YOU can do it again.  You know how, and you've got the numbers!  The world is your oyster, transmission opponents!

So, GBE showed up at a recent meeting of the Joint Committee on Energy and Water at the Kansas legislature and made an obsequious presentation about the failed NIETCs and how great its project will be for Kansas.  You still love them, don't you, Kansas?  Kansas?  Hello?  Somebody needs a hug!

Remember how Invenergy has been claiming (in multiple states) that its transmission projects had NOTHING to do with the NIETCs and that Invenergy did not request them?  I have been pushing back against that for months because it is a big, fat lie.  Of course Invenergy submitted requests for NIETCs for all the transmission projects it is developing.  DOE asked for suggestions of where to make corridors.  They didn't have a crystal ball.  Invenergy DID request these corridors that so upset and horrified thousands of landowners across the Midwest.  Invenergy admits it at minute 12:00 of its presentation.  Listen carefully.
When DOE first opened this program, we initially submitted applications for all projects in Invenergy's transmission portfolio to be considered.
Right, like I've been saying... Invenergy requested these NIETCs.  Later on, Patrick whines that DOE didn't provide adequate notification and landowners got quite ticked off when they found out.  Invenergy was a huge fan of hiding its NIETC requests from landowners, until they got caught.  Then Invenergy first requested that its corridor be narrowed to half a mile, and in November it says it asked DOE to remove the corridor in its entirety.  Let's see... that's about the time you all got cranked up about the corridors.  Invenergy knew it was beat and threw in the towel.  You did this!  Congratulations!  You have the power!

And one more thing before I get onto the real revelation DOE and GBE is trying to hide from you now...

While Patrick Witty gave the presentation and began answering questions, he made the fatal mistake of calling Brad Pnazek up to the podium to answer a question.  The bombastic Brad took over and it was quite a while before Patrick was able to wrest the microphone away from him at the request of a legislator.  It might not have mattered if our friend Brad wasn't a prevaricator of the highest order.  Remember when Brad "misspoke" at a DOE EIS webinar to say that GBE wasn't necessarily a merchant transmission project and had not yet decided how its project would be structured?  Once again, Brad did not disappoint.  I'm going to be frank with you... Brad has a penchant for making crap up if he thinks it will help his position.  Even when the lie actually matters little, Brad can't help himself.  

Brad told the committee that while GBE pays 110% of fair market value, other utilities only pay 90% of fair market value for their easements.  C'mon, Brad, this lie doesn't even make sense!  All utilities are required by law to pay 100% of fair market value for the easements they want.  He followed that lie by saying that while GBE is only going to use eminent domain on around 4% of the easements needed, other utilities use eminent domain for 20% of the easements needed.  This is ANOTHER made up fact.  Utilities usually take less than 5% of the land they need using eminent domain.  A transmission line that attempted to take 20% would be a public relations disaster of epic proportions (sort of like requesting NIETCs, right, Brad?).

Gotta wonder about Brad.  Is he someone's relative or a political favor?  I understand that the Peter Principle elevates employees to their level of incompetence, but it's not just incompetence here.  Brad just can't help making crap up if he thinks it would sound good (in his own head).  Take note!  He's a ticking time bomb.  Deploy as necessary.

Now let's get to the most important and urgent revelation...
The DOE has published the Draft EIS for Grain Belt Express and set a 45-day comment period.
That's right, Patrick just casually dropped that in his presentation and the press (and everyone but me apparently) missed it.

As you may recall, Grain Belt Express has applied for a $4.9B loan guarantee (of taxpayer money) from the U.S. Department of Energy.  As part of its intent to grant that loan, the DOE is required by federal law to perform an Environmental Impact Statement on the project so that its environmental effects can be made public and taken into consideration when deciding to grant the loan.  Of course, you may also recall that the DOE granted a "conditional" approval of GBE's loan in its panicked, mad dash for the exit after President Trump was re-elected.  DOE has been madly pumping out the taxpayer dollars to its favored companies and projects ever since November.  GBE's "conditional" approval is contingent upon the completion of the EIS.  So does this mean that the EIS is merely a pre-determined exercise at this point, where the report is written to bolster the already granted approval?  Why even bother?

An EIS has several steps that the federal government usually drags out for years.  The first step is Scoping, where DOE shows the project to the public and asks them what it should study.  The DOE engages in the widest notification it can to make sure impacted communities can be engaged to make comment.  The DOE held public "workshop" meetings and accepted a boatload of public comment back in 2023.  Then DOE published a Scoping Report to share what they learned.  

And since then... crickets.  DOE did nothing with GBE's EIS for two years.  Guess they thought they had all the time in the world...  and then the real world intruded.  Now it's apparently a rush-rush, hurry up emergency.  DOE has set the MINIMUM time frame it can get away with to accept comments on its Draft EIS.  You have only 45-days to comment from the date the notice was published in the Federal Register.  You read the Federal Register every day, don't you?  You don't?  Of course you don't!  So, how is that public notice?  Sure, it's available to the public, if you know where to look and your crystal ball lets you know it's there.  Where's all the notice to the public?  Last time, DOE did media and sent notices to landowners.  DOE has a list of people who commented on the scoping in their possession.  Where's the notice?  There isn't any.  Isn't that where GBE and DOE got in trouble on the NIETCs?  Lack of public notice is a serious issue.  How can you tell when your government is trying to pull one over on you?  Lack of public notification of its actions.  DOE has become a very shady agency during the past four years.  Isn't it time to clean house?  At any rate, your deadline to comment is March 3, 2025.  

The EIS is over 400 pages, and has numerous appendices.  You're supposed to read, digest, and comment on all this in less than 45 days, because the clock has already started ticking.  Ask your Senators and Representatives to demand that DOE not start its 45-day clock until it has notified all impacted communities, landowners and the people who commented on scoping.  It's going to take more than 45-days to notify everyone and by that time the comment period is over.  This deadline and lack of public notification is ABSURD!  An extension must be demanded.

And just like the NIETCs, lack of DOE notification doesn't prevent grassroots notification.  Spread the word!  Let everyone know about the Draft EIS and the upcoming public meetings where people can get more information and make oral comments.  The meeting schedule is here.

There are ONLY 2 meetings being held across the state of Kansas.  How far are you expected to drive in the dead of winter to attend one?  100 miles?  200 miles?  300 miles or more?  There's also just 2 meetings for Missouri!  Let your elected officials know that this is an inadequate number of meetings!

And here's something else DOE "forgot" to tell you... you can request your own personal copy of the EIS, whether electronic or on paper.  Each paper copy DOE has to send out costs GBE several hundred dollars.  Request your paper copy by emailing:  
[email protected]
Please also read the Federal Register Notice to scan for other information that DOE didn't include on its EIS page.

Also take note that the EIS is a public recitation of the environmental impacts of GBE, it not a pass-fail test that promises no impacts.  The federal government is required to make the environmental impacts of its action public and allow the public to comment on them.  If you notice things that DOE missed in their report, let them know.  If you think their conclusions are wrong, let them know.  If you think DOE didn't adequately study alternatives, let them know.  And, most of all, let the DOE know that you demand they select the "no action" alternative that means they don't grant the loan.

This is going to be a lot of work, but don't give up.  Remember how your participation in group action cancelled the NIETCs.  You activated your elected officials and their involvement was crucial to your success.  Like the shampoo bottle says... lather, rinse, repeat.
0 Comments

Pigs Get Fed, Hogs Get Slaughtered

1/2/2025

2 Comments

 
Picture
Invenergy has been trying to build its merchant transmission Cimarron Link project since at least summer of 2023.  That's when its courting of landowners was brought to my attention.  It is likely that it has been in the works much longer.

A merchant transmission project is to transmission what a private toll road is to transportation.  There is an existing network of electric transmission lines that serve all public utilities that provide service to all who request it.  Because this is a public network (compare to a public highway) everyone who takes electric service pays a portion of constructing the network and keeping it operating.  Our tax money pays to keep our highways maintained for everyone's use.  But a merchant transmission project is a supplemental, speculative transmission line.  It is not necessary for public utility service and it is not subsidized through our electric bills.  It's a private electric toll road to ship electricity that is paid for by the electricity wholesalers who choose to use the private roadway to receive electricity they purchase from generators.  A merchant transmission line relies on voluntary customers to pay for its construction and operation.  If a merchant transmission project doesn't have any paying customers, it's not economic and cannot be built.  It is a speculative investment by private companies who want to bet that if they construct it, it will attract paying customers.  Much like a private toll road highway, it is not for the use of the general public, but only those who can pay the toll to use it.

Cimarron Link is a merchant transmission project.  It is not needed for reliability or economic purposes, and it is not part of any transmission plan by regional grid operator Southwest Power Pool.  It's "need" would only come from paying customers who want to use it.  But Cimarron Link doesn't have any customers!  Therefore it applied to receive a capacity contract from the U.S. Department of Energy, and it was awarded such a contract in 2024.

The capacity contract is essentially the U.S. government using taxpayer dollars to pay the "toll" on Cimarron Link.  But the government isn't a public utility and does not supply electricity to anyone.  The idea is that the government will underwrite the cost of constructing the project with the hope of re-selling the ability to use the toll road to an actual utility somewhere down the line.  Of course, anyone could sign up to pay the toll now, but they haven't.  If they don't want to use Cimarron Link now, what's the chances that they will want to pay the toll later, after the project is constructed?  There is no precedent for this new capacity contract program and it is unproven that it will actually work.  If it doesn't, the government will continue to pay the toll for Cimarron Link for up to 40 years in the future, even though it is not actually using it, and Cimarron Link may never deliver any electrons to anyone.  The government is acting as a speculative investor, betting that it can sell something that Cimarron Link cannot.  Good luck with that!

So, Cimarron Link lined up at the hog trough to help itself to a $306M capacity contract.  While it was filling its belly, it also thought that maybe a National Interest Electric Transmission Corridor would taste good, so it applied for one of those as well.  A NIETC would have been a federal land use designation that created a zone for construction of Cimarron Link and would make it eligible for federal permitting and eminent domain if not granted by the State of Oklahoma.  But that didn't work out.  The U.S. Department of Energy cancelled the proposed Delta-Plains NIETC that Cimarron Link wanted to use to route its project across Oklahoma.  Now Cimarron Link can only use Oklahoma laws to try to take property using eminent domain.  If Oklahoma does not grant Cimarron Link eminent domain authority, the project is essentially dead.  Sure, Cimarron Link can continue to try to obtain voluntary easements across private property, but if the landowner refuses, that's the end of it.

Which brings us to Cimarron Link's recent suits against landowners to obtain an injunction allowing Cimarron Link to enter private property to perform "surveys" against the landowner's wishes.  When it filed its lawsuits, Cimarron Link claimed it was "authorized to exercise the power of eminent domain for the appropriation and use of lands and rights-of-way necessary for a public purpose by law specifically, Tit. 27 Okla. Stat. Sec. 7 and Tit. 66 Okla. Stat. Sec. 51-60."    Cimarron Link claimed it was a corporation that was engaged in the transmission of electricity in Oklahoma.  But is it really?  Not right now it isn't.  It's not furnishing anything to anyone.  But it wants to do so.  So, it's not really clear that Cimarron Link's speculative merchant transmission project is authorized to use eminent domain.

Now, maybe Cimarron Link thought it would be easy to convince a local judge that it currently has that ability so that it could force its way onto private property to do surveys for its transmission project.  But the people fought back and said it did not have that authority under state law. 

Maybe Cimarron Link thought it could continue operating under the radar long enough to get such a determination by a local court, but that idea ended when it got too greedy and helped itself to a NIETC designation.  The people of Oklahoma found out about that, and they were incensed.  Huge opposition to the NIETC soon developed and all of a sudden people stopped cooperating with Cimarron Link.  The sleepy days of keeping quiet and bullying landowners to sign voluntary easements are over.  Now Cimarron Link has a huge problem on its hands.  It is not clear that Cimarron Link has eminent domain authority, and the people are refusing to sign voluntary easements.  Cimarron Link's little piggy has eaten itself into a full-blown HOG, and we all know what happens to hogs... they end up on the dinner table!

Perhaps sensing that its effort to convince a court that it has eminent domain authority wouldn't be successful, Cimarron Link recently withdrew its suits for entry against landowners.  But it did so without prejudice, which means Cimarron Link reserves the right to bring this issue before the courts in the future.  Cimarron Link said it was withdrawing its suits to "allow more time for engagement with landowners."  Well, good luck with that, Cimarron Link, landowners have formed a wall of resistance and are having none of that, thanks to the opposition that developed during the NIETC debacle.  Word has it that Cimarron Link is trying to move on to adjacent landowners and begin its game on a new, unsuspecting public, but is that really going to be successful in the new public relations disaster environment that NIETCs created?  What other tricks might Cimarron Link have up its sleeve?

Cimarron Link is a project owned by Invenergy, a private energy firm based in Chicago.  Invenergy has invested in several merchant transmission projects around the country.  One of its projects, the Grain Belt Express, was rejected by Illinois courts because it wasn't a public utility with the ability to use eminent domain.  Illinois law required that a public utility actually be currently engaged in the business of furnishing power in order to file an application to build a transmission line that could use eminent domain to acquire land.  Like Cimarron Link, Grain Belt Express was a speculative project by a new entity that was not a public utility.  But Invenergy found a way around that by creating bespoke, special purpose legislation that granted it eminent domain authority in a handful of counties it wanted to cross and allowed it to apply for a permit.  This special purpose legislation was tucked neatly into the Illinois Climate and Equitable Jobs Act (CEJA), an energy bill that comprised thousands of pages and was dumped on the legislature just hours before the vote, making sure that legislators didn't have time to even read it before voting.  As a result, the legislation passed, and Grain Belt Express was suddenly a public utility that could use eminent domain to acquire land for its merchant transmission project.  Now, I'm not saying that Invenergy's fattened hog is going to use the same tactic in Oklahoma to ensure it has the power of eminent domain before re-filing its suits to enter and take land for Cimarron Link, but it's certainly possible.  Keep an eye on what's happening at the Oklahoma legislature this year!  And while you're keeping an eye out for amendments to Oklahoma eminent domain laws, perhaps you might want to propose some of your own?

Thanks to the NIETC public relations disaster, landowners are talking to each other and comparing notes about the things they have been told by Cimarron Link.  And, if any of the things I have heard are true... shame on you, Cimarron Link!  Invenergy's Grain Belt Express project has a "Code of Conduct for Land Agents" that set some ground rules for interaction with landowners.  Oklahoma landowners might be quite shocked to find out which tactics are not allowed on a different Invenergy merchant transmission project.  Why isn't Invenergy using this same Code for the Cimarron Link?  Don't Oklahoma landowners deserve the same respect and honesty as the landowners in Kansas, Missouri, and Illinois who are targeted by Grain Belt Express?  Maybe someone wants to ask Invenergy why it doesn't have a Code of Conduct for Cimarron Link?

Cimarron Link's little piggie ate too many government handouts and has now turned into a full blown hog.  Everything was going great until Cimarron Link ate that NIETC dangling over its trough.  Cimarron Link brought this public relations disaster upon itself, and now it has to pay the consequences.
2 Comments

Did NIETCs "Unlock" Transmission?

12/20/2024

0 Comments

 
Picture
When it first proposed creating a process to carry out new authority to designate National Interest Electric Transmission Corridors as enabled by changes to Sec. 216 of the Federal Power Act contained in the 2021 Bipartisan Infrastructure Bill, the DOE envisioned this:
DOE is considering this process for designating NIETCs in recognition of the fact that such designations would occur in areas experiencing the greatest need for immediate transmission development and would unlock new financing and regulatory tools to spur investment in those areas. The recently enacted Infrastructure Investment and Jobs Act (“IIJA”) and Inflation Reduction Act (“IRA”) contain new public-private partnership and loan authorities that DOE can use to spur construction of transmission projects in NIETCs. In addition, section 216(b) of the FPA, as amended by the IIJA, allows the Federal Energy Regulatory Commission (“FERC”) to issue permits to site transmission facilities within NIETCs when certain statutory conditions are met.
At that time, DOE thought NIETCs were the key to everything transmission.  DOE got so enamored of  keys and locks that it began claiming that in order to feed at the tax money buffet Congress had created, a transmission project needed to be in an NIETC.  Then DOE created "guidance" (aka quasi-rules that have no legal effect) that said:
In many cases the solution will be constructing new transmission facilities, and the NIETC designation can unlock key federal financing and permitting tools to facilitate such transmission infrastructure. 
A clear message was sent to greedy transmission developers by the DOE -- request a NIETC or you're not getting into our buffet.  So, they did.  They requested 10 NEITCs that covered a hundred thousand acres of private property across the country.  When it released its preliminary list, DOE reiterated the necessity of NIETC designation as a ticket to the buffet:
A NIETC designation unlocks critical federal financing and permitting tools to spur transmission development, including direct loans through the TFF program, public-private partnerships through the Transmission Facilitation Program, and Federal siting and permitting authority of the Federal Energy Regulatory Commission (FERC) in certain limited circumstances. Developers and state and local siting authorities may also be able to leverage the environmental analysis conducted by DOE as part of the NIETC designation process to complete local siting and permitting processes, which could ultimately accelerate siting and permitting for transmission projects in these targeted, high-priority areas. 
Transmission developers took DOE at their word and admitted their only purpose in seeking NIETC designation was to get in line at the buffet.
Invenergy’s primary interest in securing NIETC designation for the Midwest-Plains corridor is for Grain Belt Express to be able to access additional federal financing options that support competitive rates for energy end users. Efficient and attractive financing sources are important as Grain Belt Express is a merchant transmission project principally funded via bilateral negotiated contracts with willing offtakers and not automatically via RTO, ISO or transmission owner cost allocation to ratepayers. As such, access to competitive financing supports the provision of lower-cost, competitive rates to prospective customers.

​The DOE’s Loan Programs Office is currently conducting federal loan guarantee and environmental reviews for Grain Belt Express Phase 1. Invenergy’s interest in accessing the Transmission Facility Financing program, enabled by NIETC, is to support Grain Belt Express Phase 2. However, given the inherent uncertainty in any regulatory permitting process, Invenergy supports designation of the full Midwest-Plains corridor to secure additional financing pathways for both Grain Belt Express Phase 1 and Phase 2.​
Grain Belt Express admitted that it needed that NIETC to be able to unlock the buffet.

But then the DOE cancelled GBE's NIETC, along with 6 others that were never needed but had been pursued in order to get a seat at the buffet.

Why is DOE still continuing GBE's "conditional" loan guarantee now that the NIETC has been cancelled?  I thought the NIETC was the key to unlock the buffet?  Missouri Senator Josh Hawley asked DOE to cancel that guarantee recently.  Hawley mentioned that GBE doesn't have any customers.  Without customers, GBE doesn't have any means to repay a $4.9B DOE loan.  And why is the government giving a low cost loan to a privately owned electric toll road that will charge its voluntary customers a market-based fee to use its line?  A DOE loan won't lower the costs that customers would pay to use the line, it only increases Invenergy's profits that go into uber-rich owner Michael Polsky's pockets.  The electric transmission market that would set the market based rates for voluntary customers isn't going to change because Grain Belt Express paid less interest on its loan.  For a different kind of transmission project that is paid for by captive ratepayers, paying less interest goes back into the regulated rates the transmission company charges.  But for a market-based project like Grain Belt Express, paying less interest means the project is cheaper to construct, although the rates the market will allow GBE to charge won't change.  The amount of profit Grain Belt Express can create for its owner is the delta between what the project costs to build and the market rate for transmission.  DOE might as well put that $4.9B directly into Polsky's pocket. 

​Grain Belt Express has to provide a more economic option for transmission capacity than our existing public electric grid, or it won't attract any customers.  And that's just the problem... Grain Belt Express never has attracted any customers, aside from a gaggle of uninformed Missouri municipalities who signed a non-binding contract to purchase "up to" about 4% of GBE's total capacity.  If GBE was actually an economic option, a good idea, a needed project, it would have customers lining up to use it.  Instead... crickets.  And the DOE thought that was a good candidate for a $4.9B construction loan?

Perhaps that's because the DOE is fraught with corruption and most of its employees are scattered and goofing off.  A recent Inspector General report found that DOE does not enforce the rules against conflict of interest and treats taxpayer money like "monopoly money".
​The Federal Government prohibits conflicts of interest to safeguard the taxpayers against selfdealing, collusion, and fraud by Government officials and Government contractors. In the private sector, each party has a “baked in” economic incentive to watch, track, and account for its own dollars. That economic incentive does not exist in the public sector, where Federal dollars are more likely to be treated as “monopoly money.”
The report reveals that DOE is very lax about preventing conflicts and that it exercises absolutely no oversight over the third party "experts" that provide much of the documentation that becomes the basis for a decision to proceed with a loan.  Since the applicant for the loan (the company) pays for these third party experts that do the DOE's work to investigate the loan application, the DOE thinks it is prohibited from looking for conflicts of interest there.  Let me get this straight... the applicant is paying the salaries of the DOE contractors who process their own loan application?  Why doesn't DOE have impartial employees to carry out such an important task as safeguarding the hard-earned dollars of American taxpayers?  Why is it all farmed out to third party contractors who may have conflicts of interest?  This is outrageous!  Remember when Josh Hawley questioned Loan Program Office director Jigar Shaw in a committee hearing?  Seems like another session is desperately needed!

And if the NIETCs are supposed to "unlock" federal financing tools, it seems like Invenergy has another problem.  Invenergy's Cimarron Link merchant transmission line across Oklahoma filled its plate at the DOE financial incentives buffet.  Cimarron Link was awarded a $306M capacity contract just a few short months ago.  A capacity contract is just what Grain Belt Express is missing... a customer who will pay to use the merchant transmission line.  If a merchant transmission project doesn't attract any voluntary customers, that means it is not needed!  End of story!  But Congress gave the DOE authority to serve up our tax money in the form of a fake contract with Cimarron Link.  Oh, the money is real... Cimarron Link will receive $306M for use of its line over a period of up to 40 years, but DOE won't actually *use* the project.  It's paying for a contract it won't use so that Cimarron Link doesn't have to actually provide any service at all.  It's getting federal welfare paid for by all of us to construct a project that has no customers.  So, if Cimarron Link's NIETC has also been cancelled, does that mean it takes the capacity contract with it?  Someone needs to demand some answers!

The DOE is a corrupt political agency that has no business messing around in the reliable delivery of electricity.  We have plenty of regulators already whose actions actually do make sure the lights come on when we flip the switch.  DOE is a politically motivated chef, using our tax dollars to serve up a buffet of free Monopoly money to favored energy corporations.  And DOE isn't even very good at it... it makes up the rules as it goes, wastes an incredible amount of tax money, and in the end has nothing to show for it.  I dare you to name just one DOE transmission program that has successfully produced some benefit for the American people over the last four years.  Can't do it, can you?

DOE is engaged in the business of giving your money to energy corporations, it's not engaged in doing anything that actually helps you.
0 Comments

NIETCs Cancelled

12/17/2024

4 Comments

 
Yesterday, the U.S. Department of Energy cancelled 7 out of 10 proposed National Interest Electric Transmission Corridors.  Millions of landowners who would have been affected by the corridors are celebrating today.

The DOE's proposed NIETC map went from this:
Picture
To this:
Picture
I don't know any groups fighting against the corridors that are left, but I know plenty of folks who fought the ones that were eliminated.  So, what's left?  Lake Erie connector, which is created for a transmission line to connect the U.S. to Canada.  This project has been bumping around for years and will be routed underwater and underground.  Buried transmission that doesn't need new easements generally doesn't create opposition.  There's a Tribal Energy project in the Dakotas and Nebraska that will supposedly help the tribes develop their assets.  And there's the Southwestern corridor that begins in Kiowa County, Colorado and comes to an abrupt end at the border of White Sands in New Mexico.  On its way, it crosses over into the Oklahoma panhandle and is supposedly for benefit of NextEra's Heartland Spirit Connector transmission line, although that project begins in the panhandle and heads east, not west.

Although the DOE kept millions of landowners in suspense for months, the idea of building new transmission is what really took a beating during that time.  Don't get me wrong, I'm thrilled these corridors have been scrapped, but it almost seemed like it was too easy, or predictable, sort of like the conclusion of a Hallmark Christmas movie.  Why were those other 7 corridors even suggested in the first place?  Was the DOE so captive to the submissions of greedy transmission developers that they just couldn't say no?  Was it because DOE took it upon itself to tie designation of a NIETC to receiving government handouts in the form of loans and contracts, even though there was no statutory reason to do so?  Has DOE changed its mind about NIETCs "unlocking" the vat of taxpayer money at DOE HQ?

Were they scrapped because DOE finally realized the truth of what I'd been telling them for the past several years at every comment opportunity?  NIETCs and the other transmission facilitation tools are actually going to HARM transmission and draw greater opposition than the transmission project could ever draw on its own.  What's worse than a greedy corporation taking your property by eminent domain?  A greedy corporation being joined by the federal government while trying to take your land by eminent domain, that's what!  Dang, DOE, it took you long enough to buy a clue!

So, what's the real story?  Couple of things leaking out...

DOE was quoted saying that the NIETCs can "disrupt" transmission planning or on going development.  Right... just like I've been telling you, DOE, NIETCs were like a magnet for more transmission opposition.

DOE also said there appeared to be little NIETCs could do to facilitate transmission in the near term.  In other words, don't try to apply corridors to projects that are already underway.  If you need to know why, see previous paragraph.

DOE turned out to be wrong about everything from the very beginning.  In fact, the Infrastructure Investment and Jobs Act that revived the NIETCs to put them into practice was wrong, too.  That's because it was concocted by "clean energy" proponents who don't have a clue in the world how landowners feel about eminent domain.  Oh, sure, these same environmental and special interest groups showed up for all the rulemakings that came out of their bespoke legislation for the purpose of building more transmission (for wind and solar).  And when they showed up in rulemakings they always pretended they were representing the interests of landowners and that they had experience working with landowners.  Nothing could be further from the truth.  It was all a giant lie.  The real landowners have spoken.  NIETCs were about as popular as catching herpes in the hot tub of a cheap motel.

Now that the majority of the NIETCs are off the table, we can take a moment to relish the victory.  However, keep in mind that the NIETC process is a continual and revolving 3-year long process.  Every three years, DOE must make another transmission study, accept new ideas for NIETCs, and then go through the designation process all over again.  We could be right back here at the end of 2026 if Congress doesn't end NIETCs for good through amendment of Sec. 216 of the Energy Policy Act. 

We'll be working towards that goal while we're all back to work opposing the particular transmission proposals in our own community.  Landowner groups are coming together to fight transmission on a united front more than ever before.

Here in my neck of the woods, we'll be putting our effort into opposing two new transmission proposals from PJM Interconnection to build transmission extension cords from West Virginia's coal-fired power stations to new data centers in Loudoun County, Va.  Virginia can't build any new power generation because it's too "dirty", but they also can't stop building new power load in the form of data centers.  Data center taxes cover a large chunk of Loudoun County's budget.  How do you think Loudoun got to be the wealthiest county in the nation?  Through parasitic sucking of all the energy and wealth out of surrounding states.

There's still much work to do, but having a victory now and again is as invigorating as a polar plunge.  Happy Holidays, everyone!
4 Comments

U.S. DOE Cancels Oklahoma NIETC

12/15/2024

0 Comments

 
Picture
Oh, what a tangled web we weave when first we practice to deceive!  Last week, the U.S. Department of Energy cancelled the Delta-Plains National Interest Electric Transmission Corridor.  DOE said it was due to overwhelming opposition, but let's be real.  The transmission companies who would benefit from it begged to have it cancelled because it was creating overwhelming opposition to one of their projects, the Cimarron Link merchant transmission project.  And we all know who controls the DOE's NIETC designations, don't we?  Its being run by the private interests that the DOE abdicated to when it set up the program.  Our Department of Energy is being run by private companies with financial interest in building transmission.

While cancellation of the NIETC is good news for Oklahoma, it still doesn't do a thing about Cimarron Link.  Project owner Invenergy put out a statement saying nothing has changed for its project.  It still wants to build a transmission line from the panhandle to Jenks.  Invenergy even went so far as to claim that it was advocating for landowners to have the NIETC cancelled.  But Invenergy is still suing landowners in Oklahoma to gain access for surveys to build the project.  If it is successful there, the eminent domain suits are not far behind.

And don't forget about NextEra's Heartland Spirit project, which was also sited in the cancelled NIETC.  That project is also still moving forward.

In the wake of the cancellation, a whole bunch of Oklahoma politicians claimed credit and said they stood with landowners.  This is not their victory... this is the people's victory!  One politician even went to far as to claim that NIETCs were bad because they take property, but inexplicably Cimarron Link is good (because it takes property?).  

There's a whole lot that Oklahoma politicians and the local media don't understand about NIETCs.  The NIETC was never a transmission project, despite the many news stories saying a federal transmission project across Oklahoma was cancelled.  The media's ignorance has done nothing but confuse people into thinking that all the transmission projects have been cancelled.  That confusion is quickly being replaced by reality.

A NIETC is nothing more than a land use designation.  Once designated, it makes land in the corridor the first place to site new transmission projects.  If a state does not approve the transmission project, then the developer can petition the Federal Energy Regulatory Commission to permit it.  If FERC issues a permit, then the developer could use federal eminent domain.  It's as simple as that.  The NIETC is not and never was a transmission project.  Therefore its cancellation simply means that Oklahoma law will be used to decide the issues, such as whether Cimarron Link is a utility furnishing power in Oklahoma.  Without knowing who Cimarron's customers will be, it is impossible to say that it is delivering electricity to Oklahoma.  Cimarron Link is what's known as a merchant transmission project.  It is a speculative, supplemental transmission line that is proposed purely for profit.  It is not needed by Oklahomans to keep the lights on.  Cimarron Link wants to sell its capacity through private contracts with utilities that actually serve Oklahomans, or maybe even to utilities or buyers in other states.  The electricity shipped on the line is not for Oklahoma, but to make a profit for Invenergy, who also owns the beginnings of the country's biggest wind farm under development in the panhandle.  It's Invenergy's private driveway to get its generation to a strong point in the transmission system (Jenks) where it can sell it to companies in other states.  Cimarron Link is a integral part of Invenergy's wind farm.  It's a transmission line only made necessary by that wind farm.  Without the wind farm, Cimarron Link wouldn't exist.  Cimarron Link isn't to provide needed reliability to the transmission system and it's not even for use by Oklahomans.

The NIETC was only cancelled because it was mucking up Invenergy's clandestine approach to securing easements with landowners.  Before the NIETC enraged the Oklahoma people, landowners may have felt isolated, ignored and vulnerable and therefore were easier to manipulate.  However, once the NIETC created a firestorm of opposition, landowners began to fight back.  The DOE and Invenergy hope that the huge opposition group will now disband and everything will go back to normal.  But you can't put toothpaste back in the tube, and you can't put the opposition genie back in the bottle.  The opposition Cimarron Link sees today is the opposition it's going to have to its project going forward.  The same opposition will also coalesce around NextEra's Heartland Spirit (another merchant project seeking to take advantage of Oklahomans).  And the opposition is also taking a hard look at Transource's Sooner-Wekiwa, a transmission project planned and ordered by regional grid operator Southwest Power Pool to provide needed reliability to Oklahoma's grid.  Transmission is never going to be the same in Oklahoma!  Power to the people!

Congratulations to the DOE for creating new and overwhelming opposition to new transmission lines!  What sounded like a good idea to the politicians in Washington DC and the clean energy interests that run the DOE is a complete dud when put into practice.  No, NIETCs won't help new transmission get built.  NIETCs will actually make it impossible to build anything because they reached too far and the American people are having none of it!  This week, DOE plans to roll out the other NIETCs it is still trying to plan and the same thing is going to happen on each and every one of them.  NIETCs are going to create a huge firestorm of opposition to new transmission lines and make it impossible to build them.  The sooner new leadership kills this stupid idea, the better off we'll all be.
0 Comments

Hawley Demands Reversal of DOE Loan for Grain Belt Express

12/14/2024

2 Comments

 
Picture
Missouri Senator Josh Hawley, who has long expressed concern about the U.S. Department of Energy's Loan Program, has sent a letter to Secretary Jennifer Granholm demanding that DOE's "eleventh-hour funding" of Grain Belt Express be reversed.

The letter says that the project is doomed to failure and cannot survive without government intervention.  Senator Hawley tells the DOE that the project has no customers.  A decade after first advertising its project to secure contracts with customers, GBE is still batting zero.  If the project was actually needed, there would be voluntary customers.

He also says that the conditional approval issued by DOE's Loan Program office on November 25 is jumping the gun because none of the financial or environmental studies that would be the basis of a decision have been completed and won't be completed for more than a year, at best.  

How can the DOE know that GBE meets all the criteria for a loan when it hasn't yet completed studying it?  It's an approval based on politics and a "hurry up" knee jerk reaction to the re-election of President Trump.  Is this how $7B of taxpayer money should be spent?  On a project that has no commercial viability?  I hope this boondoggle is one of DOGE's first cuts.

Hawley also pans DOE's National Interest Electric Transmission Corridor process, which proposed creating a corridor across the Midwest that would give the federal government backstop siting authority in the event that GBE could not get state approvals.  It is DOE that tied its loan to the designation of a NIETC, requiring a much longer process for loan approval.  Even though Invenergy is now running away from NIETCs as fast as possible, it can't run away from this one.

Who remembers what happened to the Clean Line Plains and Eastern project, tied up at the DOE when President Trump was elected the first time?  Apparently DOE needs its memory refreshed... that project also could not find customers and its approval to participate in a different DOE program was quickly cancelled.  The writing is on the wall for GBE.  The sooner Invenergy realizes the impossibility of getting this project built within the next 4 years, the less money they'll lose overall.  

Read Senator Hawley's full letter here.  Bravo, Senator, for being a desperately needed agent of change in Washington DC.  We hope you can work with the new President and Secretary of Energy to clean house!
2 Comments

NIETCs Are A Gigantic Failure

12/10/2024

0 Comments

 
When industry lobbyists originally dreamed up National Interest Electric Transmission Corridors (NIETCs) back in 2005, they thought it would be easy to make sweeping land use designations and whip states into place to approve new transmission projects under threat of federal eminent domain.  It didn't quite work out that way though, when two separate courts nullified that plan.  NIETCs sat unused for a decade, a paper statue to stupid ideas that don't work in practice.

It hasn't worked out so swell for the industry lobbyists and their environmental NGO pets this time around either.  Although no corridors have officially been designated yet, transmission developers are running away from NIETCs as fast as they can.

In 2021, policy wonks thrilled with their new control of Big Government were looking for a way to shut down fossil fuels once and for all.  One of the wonky ideas to prop up 100% use of wind and solar was to build a whole bunch of new transmission lines to connect projects in remote locations to big cities and to also connect the projects to each other.  They thought they could ride out the performance problems of intermittent renewables if they could send more power around on new wires.  That's pure fantasy, but that didn't stop them from coming up with some really horrible ideas meant to get a whole bunch of new transmission built in record time.  One such terrible idea was to dust off the NIETCs and add a provision that allows the federal government to override a transmission denial by a state utility commission.

Once the policy wonks had their federal pre-emption set up through the Infrastructure Investment and Jobs Act, the U.S. Department of Energy set to work devising a "guidance" for the process of designating NIETCs.  DOE really should have done a rulemaking, but that would have required them to actually follow rules, not make them up as they went along.

One of DOE's great ideas was to let profit-seeking utilities decide where they needed new transmission lines and request narrow NIETCs for them.  Harsh criticism through public comment caused DOE to simply hide its gift to the industry by pretending that any "interested party" could suggest where a corridor was needed and then DOE could designate the desired corridor.  The only difference was that the suggestions for corridors were no longer limited to transmission developers, however who would want or request a corridor except a developer that was going to make money from building a transmission project?  Greed of corporations has no correlation at all with where transmission is needed and where corridors should be designated.  If DOE had actually followed the statute, it would have come up with preliminary corridor designations on its own based on the results of its transmission needs study, and then those corridors were supposed to encourage transmission developers to propose projects where DOE said they were needed. Instead, DOE has allowed developers to decide where transmission is needed, and surprise, surprise, it totally aligns with where they want to build profitable transmission.  Need has been shut out.

So, DOE began its four "phase" process by opening itself up for suggestions for new corridors.  Many transmission developers who had been struggling to build unneeded projects for years, along with transmission developers who were looking at building new projects at such an opportune moment, submitted their project ideas to the DOE to be regurgitated as proposed NIETCs.

And so began DOE's Phase 2, where DOE released the preliminary corridor ideas it had received from greedy developers, but stopped short of doing any notification of the hundreds of millions of people located in the 10 proposed NIETCs.  DOE also limited its involvement with the press, preferring to only provide information to trade press with the hope that those impacted people wouldn't find out about it until it was too late to comment and become an interested party with rights to challenge any subsequent designation.  

It kinda worked.  Only a few people submitted comments.  Despite grassroots information sharing, many people simply couldn't believe such an audacious plan to conscript 100 million acres of land, or just could not be reached in time for DOE's artificially shortened 45-day comment period (which many persons had asked to be extended).

However, DOE and it's little wonky friends made two extremely critical errors in the rollout of NIETCs.

First, DOE created an information vacuum.  Although I tried to get accurate information to people (because the truth is horrible enough by itself) nature abhors a vacuum.  People began creating their own narrative around NIETCs to fill in the blank spaces that the DOE chose to create by not engaging in public notification.  He who creates the narrative controls it.  Many people did not understand that a NIETC is a land use designation, and not a transmission line project.  Many people cannot understand the varying widths of NIETCs and how they correlate with corridors requested from the DOE by transmission developers.  Misinformation filled the void, with many believing that the federal government is engaged in a land grab to create toxic energy zones miles wide across rural America.  Congratulations, DOE, you did this!  Purposeful lack of information has released the tin foil hat narrative genie from his bottle, and he's never going back in.  People have created such a fearful narrative based on distrust of the federal government that there's no way to change it now.

The NIETC horror is slowly spreading through the Midwest and West, with Oklahoma currently on fire and holding public meetings.  A couple months ago, it was Kansas, and before that it was Missouri.  These ultra wide corridors without any reason for their width and without any detailed maps has created a huge wave of fearful, suspicious and pissed off people.  This leads to...

Second, DOE's NIETCs are actually harming transmission project proposals, not helping them.  Those NIETCs that the developers thought they wanted last year are now an albatross they can't get rid of.  Because the corridors are so much wider than the actual transmission project and because of the government involvement, they are creating much more opposition than a quiet transmission project could have ever created on its own.  Isn't that right Invenergy?  NextEra?  Both of you were trying to build your own little undercover transmission projects across Oklahoma and had been doing so for several years.  Both had been having some measure of success acquiring easements and neither project had yet attracted much citizen opposition.  Well, the NIETCs blew the doors off that.  Now the transmission projects are facing a huge wave of staunch opposition that's going to make it nearly impossible to complete the project because Oklahoma law doesn't really give eminent domain authority to merchant transmission.

Because of the blowback, transmission developers are actually running away from the NIETCs as fast as possible and trying to claim they have nothing to do with them.
Invenergy is aware of some confusion between its Cimarron Link project and the Department of Energy’s National Interest Electric Transmission Corridor program. However, Invenergy has communicated to DOE that the NIETC designation is unnecessary and is not a priority for its Cimarron Link project.
Oh, c'mon now.  Of course Invenergy asked for the Delta Plains corridor, along with NextEra, whose Heartland Spirit transmission line makes up it southern border (and the part that continues into Arkansas).  Anyone who has been paying attention to transmission in Oklahoma would instantly recognize the northern border of Delta-Plains as AEP/PSO's failed WindCatcher proposal, now reincarnated by Invenergy's Cimarron Link.  The southern border of the Delta-Plains is Clean Line Energy Partners' failed Plains and Eastern Clean Line, now reincarnated at NextEra's Heartland Spirit.  I've been writing about this for years.  Instead of making two separate NIETCs, the DOE simply combined these two relatively close transmission projects into one NIETC and all the folks in between the two projects got thrown to the wolves.  After all, they weren't supposed to find out about it.
Picture
And in Kansas and Missouri, Invenergy has submitted comments to the DOE asking that it narrow its proposed Midwest-Plains corridor to half a mile, just wide enough for its Grain Belt Express project.  Grain Belt was already approved in those states, but announcement of the NIETC was getting people fired up all over again, and attracting the ire of elected officials.

That's right... Congressional representatives are gearing up to thwart NIETCs. Nobody thinks these corridors are a good idea, not even the developers that thought they wanted them in the first place.  NIETCs are making it more difficult to build new transmission because they are creating a larger pool of opposition and those opponents control the narrative because DOE failed to provide any public information, creating an information vacuum.

Those people at the DOE who are running the NIETC program ought to be fired.  They have thoroughly mismanaged it and made it not only useless, but something to be actively shunned.  That's okay though... I'm pretty sure those folks will soon be in the unemployment line come January.  I hope they've managed to give away enough of your tax money to "clean energy" think tanks and NGOs to secure new employment where they can wait out the next 4 years.

We were promised that DOE would be beginning Phase 3 of its NIETC designation process "Fall 2024."  Fall's over.  Nothing yet.  We were also told that DOE would be releasing its updated list of proposed NIETCs and detailed maps "in November, after the election."  That also didn't happen.

And what about NIETCs when there's nobody left in Washington to run the program?  Most likely not happening, at least not for the next 4 years.  But unless Congress cleans that mess up, it's like a deadly seed just waiting to be watered to spring back to life under a future administration.
0 Comments
<<Previous

    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


    Need help opposing unneeded transmission?
    Email me


    Search This Site

    Got something to say?  Submit your own opinion for publication.

    RSS Feed

    Archives

    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories

    All
    $$$$$$
    2023 PJM Transmission
    Aep Vs Firstenergy
    Arkansas
    Best Practices
    Best Practices
    Big Winds Big Lie
    Can Of Worms
    Carolinas
    Citizen Action
    Colorado
    Corporate Propaganda
    Data Centers
    Democracy Failures
    DOE Failure
    Emf
    Eminent Domain
    Events
    Ferc Action
    FERC Incentives Part Deux
    Ferc Transmission Noi
    Firstenergy Failure
    Good Ideas
    Illinois
    Iowa
    Kansas
    Land Agents
    Legislative Action
    Marketing To Mayberry
    MARL
    Missouri
    Mtstorm Doubs Rebuild
    Mtstormdoubs Rebuild
    New Jersey
    New Mexico
    Newslinks
    NIETC
    Opinion
    Path Alternatives
    Path Failures
    Path Intimidation Attempts
    Pay To Play
    Potomac Edison Investigation
    Power Company Propaganda
    Psc Failure
    Rates
    Regulatory Capture
    Skelly Fail
    The Pjm Cartel
    Top Ten Clean Line Mistakes
    Transource
    Washington
    West Virginia
    Wind Catcher
    Wisconsin

Copyright 2010 StopPATH WV, Inc.