Tech giants confronted by officials from 16 US states: 'Questioning the longstanding way we've done things'

Montana Attorney General Austin Knudsen has teamed up with 15 other Republican attorneys general to tackle what they have said, in a press release, are "misleading and deceptive claims" from tech giants about the companies' use of renewable energy, according to Montana Free Press. 

In a letter to Meta (Facebook), Amazon, Google, and Microsoft, the AGs also said the companies have driven up electricity demand while "pushing utilities towards harmful net-zero goals," threatening coal and gas plants they say are crucial to the reliability of the power grid and the Trump administration's aim to "unleash American energy."

Central to the concerns raised by Knudsen are renewable energy certificates, or RECs, which the U.S. Environmental Protection Agency has described as "a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation."

Because of how the energy mix making up the traditional power grid works, customers tapped into it can't know the origins — be they fossil fuels, solar, wind — of all the electricity they consume. RECs represent a certain amount of electricity generated and transmitted to the grid by a renewable source, and they're the "accepted legal instrument through which renewable energy generation and use claims are substantiated in the U.S. renewable electricity market," according to the EPA. 

But in their letter, Knudsen and the other AGs said big tech is participating in a "shell game" with purchases of unbundled RECs, which the EPA has described as "sold, delivered, or purchased separately from electricity."  

"Buying RECs that are unbundled from the actual energy companies 'use' and 'consume' does not result in any operations being 'powered by' renewable energy," the AGs wrote. "A REC merely shows that renewable energy was generated somewhere on the planet."

That's the positioning for why the group says the companies' use of unbundled RECs to substantiate significant use of renewables is "deceptive": Ostensibly, the tech giants' energy-hungry operations, outpacing what solar and wind currently provide, continue to draw also and even largely on fossil fuels.

"As a result of big tech's misleading energy use claims, coal and natural gas plants are being shut down," said Knudsen in a press release from the Montana Department of Justice. "Not only is our electric grid being threatened, but the companies could be in violation of Montana law."

The AGs' letter focused heavily on the reliability of the grid and a sharp increase in usage and electricity bills across the U.S., driven in large part by data centers.

Officials going after allegedly misleading marketing and high utility bills could certainly sound like good news for consumers. But those who want to see clean energy infrastructure grow to cut customers' electricity costs and reduce environmental impacts have their own concerns about the AGs' aim to prioritize coal and gas.

Do you worry about companies having too much of your personal data? Absolutely 👍 Sometimes 🤔 Not really 👎 I'm not sure 🤷 Click your choice to see results and speak your mind.

John Rogers, from the Union of Concerned Scientists, told KUNR Public Radio of Nevada, "Their interest may not be entirely about ensuring the integrity of renewable energy markets and more about propping up fossil fuels."

Rogers also said that the AGs "are questioning the longstanding way we've done things" in their criticism of the use of unbundled RECs. And it's possible that officials should indeed reconsider the system in some form, perhaps looking toward mechanisms that more effectively support renewable energy generation and that manage the disproportionate energy-draw of big data centers on the power grid in order to improve consumer access, cost, and quality of life — some who live near data centers have reported hits to local water supplies, noise pollution, and symptoms such as fatigue and anxiety.

A spokesperson for Amazon told KUNR that the company's use of the RECs is a temporary measure. "Amazon purchases RECs as a temporary bridging mechanism while we wait for renewable energy projects to come online," the company spokesperson wrote.

The public radio outlet also reported that the spokesperson said Amazon had received and reviewed the letter from the AGs. Knudsen has called for a response from the tech companies by October 27.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.