August 07, 2025
👋 Happy Thursday, Pros. The Capitol is quiet, but things are heating up outside D.C.
📥 A reminder: I'll send newsletters once a week, every Thursday at 2pm ET, during recess. But keep your eyes peeled for breaking news alerts.
🎶 Today's last song comes from Brent Scott, Republican communications director for Senate Environment and Public Works: "Cue Country Roads" by Charles Wesley Godwin.
1 big thing: Key Republican pushes back on IRA and offshore wind
A swing-district Republican is pressing the Trump administration to allow wind and solar to access IRA tax credits and protect offshore wind projects.
Why it matters: Rep. Jen Kiggans is part of a growing chorus of GOP lawmakers who are speaking out against their party's widening attacks on renewable energy projects.
- Sen. Chuck Grassley this week put holds on three Treasury nominees to protest any move by the agency to restrict wind and solar projects from claiming the credit over the next year.
What she's saying: Kiggans — a U.S. Navy veteran whose southeast Virginia district is home to an offshore wind farm under construction — equated energy with national security.
- Kiggans sought to protect the IRA energy credits from total repeal in the GOP reconciliation bill through letters and phone calls until the very end.
- Though deficit hawks overran the moderates, Kiggans said she's "content" with where things landed, mostly thanks to the Senate's softening of the House's cuts.
- "It really should have been an easier issue," Kiggans told me in a phone interview from her Virginia district. "It got a little frustrating that we saw some of the restraints being placed."
"We want to make sure that these guys have a runway," she said. If a developer's project is in the works, it should have "fair amount of time to commence construction, just like [the law] says, to take advantage of the tax credits."
- The Dominion Energy project in Kiggans' district is about 60% complete and includes grid upgrades for a nearby Navy base.
- "To impede that project in any way at this point is not in the best interest of national security and of our local economy," she said. "That's why I've been protective of that."
Yes, but: The battle is far from over, as the administration has clamped down on wind and solar projects since the reconciliation bill became law July 4.
- Treasury is expected to release guidance Aug. 18 detailing how it may change "commence construction" timelines — part of Trump's eleventh-hour deal with House Freedom Caucus members to win their support for the reconciliation bill last month.
- Kiggans said her staff has been communicating with the Treasury Department and that the "ball is in their court."
Between the lines: Offshore wind has been among the biggest punching bags for the Trump White House as it seeks to promote fossil fuels, nuclear and geothermal.
- Trump blocked further offshore wind development on day one, and the Interior Department withdrew offshore wind energy leasing areas just last week.
My thought bubble: Soaring power demand from AI data centers and military bases could thaw opposition to offshore wind, particularly as prices begin to rise and create political headaches in places like Virginia.
- CRES Forum, the conservative energy group, has also been talking up offshore wind's economic benefits with Hill Republicans after the election, part of a larger attempt by the group to dispel anti-wind narratives.
- Offshore wind could gain in Senate bipartisan permitting talks. Sen. Sheldon Whitehouse is pressing for an offshore wind bill with significant leverage: At least seven Democrats would be needed to pass any permitting legislation.
2. Catch me up: Nuclear energy deals, net-zero troubles
- ☢️ Big Tech ❤️ nuclear energy: Microsoft, Meta and Amazon have been making deals with aging U.S. nuclear plants to meet soaring AI-driven data center demand, leading to warnings of a weaker power grid and consumer rate hikes, the Washington Post reports.
- 🤷♂️ What Green New Deal? Democrats aren't explicitly disavowing the Green New Deal, but they've abruptly stopped talking about it as they scramble to find new ways to talk about climate change, per Axios' Alex Thompson and Ben Geman.
- 🤖 AI vs. climate change: Tech companies' net-zero goals are in trouble as their emissions skyrocket amid the AI boom, the New York Times reports.
- 💨 Trump vs. wind power: The administration is expanding its crackdown on wind power and could start targeting wind facilities that are under construction and possibly some that are already operational, Heatmap's Jael Holzman reports.
- 🏎️ Full speed ahead: Voters won't have the chance to comment on two new Bureau of Land Management rules that will give oil and gas companies more flexibility to drill on public lands, as authorized by the reconciliation bill, per Inside Climate News.
- 🛑 Hitting the brakes: A Trump administration order has effectively killed offshore wind leasing by making vast areas of federal waters ineligible for the projects, Canary Media reports.
✅ Thank you for reading Axios Pro Policy, and thanks to editor David Nather and copy editor Brad Bonhall.
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