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Renewables developers may yet be able to start construction before the One Big Beautiful Bill deadlines hit.

The Trump administration issued new rules for the wind and solar tax credits on Friday, closing the loop on a question that has been giving developers anxiety since the One Big Beautiful Bill Act passed in early July.
For decades, developers have been able to lock in tax credit eligibility by establishing that they have officially started construction on a project in one of two ways. They could complete “physical work of a significant nature,” such as excavating the project site or installing foundational equipment, or they could simply spend 5% of the total project budget, for instance by purchasing key components and putting them in a warehouse. After that, they had at least four years to start shipping power to the grid before stricter work requirements kicked in.
Shortly after signing the OBBBA, however, Trump issued an executive order directing the Treasury Department to revise its definition of the “beginning of construction” of a wind or solar project. Under the new law, this definition can make or break a project. OBBBA established new deadlines for wind and solar development, allowing projects that start construction before the end of this year to qualify for the tax credits as they currently stand. But projects that start construction between January 1 and July 4 of 2026 will have to follow stringent new rules limiting the use of materials with ties to China in order to qualify.
The start construction date also affects how long a developer has to complete a project and still qualify for credits. Projects that start before July 4 of next year have at least four years, while those that start after must meet an impossibly short timeline of being up and running in just a year and a half, by the end of 2027.
Some worried the new guidance would narrow that four year timeframe or affect project eligibility retroactively. Neither happened. The only major change the Treasury department made to the existing guidance was to get rid of the 5% safe harbor provision. While this is not nothing, and will certainly disqualify some projects that might otherwise have been able to claim the credits, it is nowhere near as calamitous for renewables as it could have been.
Projects can still establish they have started construction by completing “physical work of a significant nature,” and the definition of physical work still includes off-site work, such as the manufacturing of equipment. That means it’s still possible for a company to simply place an order for a custom piece of equipment, like a transformer, to establish their start date — as long as they have a binding contract in place and can demonstrate that the physical production of the equipment is underway.
The new guidance also contains a carve-out that allows solar projects that are less than 1.5 megawatts to use the 5% rule, which will help rooftop solar and smaller community-scale installations.
Trump’s executive order came after a reported deal he made with House Freedom Caucus Republicans who wanted to axe the tax credits altogether. The order directed the Treasury to prevent “the artificial acceleration or manipulation of eligibility” and restrict “the use of broad safe harbors unless a substantial portion of a subject facility has been built.”
Treasury’s relative restraint, then, comes as something of a relief. “It’s not good, it’s not helpful, but from my perspective, the guidance could have been a lot worse,” David Burton, a partner at Norton Rose Fulbright who specializes in energy tax credits, told me. “Utility-scale solar and wind developers should be able to plan around this and not be that harmed.”
That doesn’t mean clean energy groups are happy about the changes, though. “At a time when we need energy abundance, these rules create new federal red tape,” Heather O’Neill, president and CEO of the industry group Advanced Energy United, said in a statement. “These rules will make it more difficult and expensive to build and finance critical energy projects in the U.S.”
The changes don’t go into effect until September 2, so for the next two weeks, all projects can still utilize the 5% safe harbor.
Even though the rules are not the death-blow for projects that some anticipated, there’s still one big unknown that could squeeze development further: The Treasury department has yet to put out guidance related to the new foreign sourcing rules created by the OBBB. One of the big fears there is that companies will have to prove their lack of ties to China so far up their supply chains that compliance becomes impossible.
We probably won’t be left wondering for long, though. Trump’s executive order asked for those rules within 45 days, putting the due date on Monday.
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The Army Corps of Engineers is out to protect “the beauty of the Nation’s natural landscape.”
A new Trump administration policy is indefinitely delaying necessary water permits for solar and wind projects across the country, including those located entirely on private land.
The Army Corps of Engineers published a brief notice to its website in September stating that Adam Telle, the Assistant Secretary of the Army for Civil Works, had directed the agency to consider whether it should weigh a project’s “energy density” – as in the ratio of acres used for a project compared to its power generation capacity – when issuing permits and approvals. The notice ended on a vague note, stating that the Corps would also consider whether the projects “denigrate the aesthetics of America’s natural landscape.”
Prioritizing the amount of energy generation per acre will naturally benefit fossil fuel projects and diminish renewable energy, which requires larger amounts of land to provide the same level of power. The Department of the Interior used this same tactic earlier in the year to delay permits.
Now we know the full extent of the delays wrought by that notice thanks to a copy of the Army Corps’ formal guidance on issuing permits under the Clean Water Act or approvals related to the Rivers and Harbors Act, a 1899 law governing discharges into navigable waters. That guidance was made public for the first time in a lawsuit filed in December by renewable trade associations against Trump’s actions to delay, pause, or deny renewables permits.
The guidance submitted in court by the trade groups states that the Corps will scrutinize the potential energy generation per acre of any permit request from an energy project developer, as well as whether an “alternative energy generation source can deliver the same amount of generation” while making less of an impact on the “aquatic environment.” The Corps is now also prioritizing permit applications for projects “that would generate the most annual potential energy generation per acre over projects with low potential generation per acre.”
Lastly, the Corps will also scrutinize “whether activities related to the projects denigrate the beauty of the Nation’s natural landscape” when deciding whether to issue these permits. That last factor – aesthetics – is in fact a part of the Army Corps’ permitting regulations, but I have not seen any previous administration halt renewable energy permits because officials think solar farms and wind turbines are an eyesore.
Jennifer Neumann, a former career Justice Department attorney who oversaw the agency’s water-related casework with the Army Corps for a decade, told me she had never seen the Corps cite aesthetics in this way. The issue has “never really been litigated,” she said. “I have never seen a situation where the Corps has applied [this].”
The renewable energy industry’s amended complaint in the lawsuit, which is slowly proceeding in federal court, claims the Corps’ guidance will lead to “many costly project redesigns” and delays, “resulting in contract penalties, cost hikes, and deferred revenue.” Other projects “may never get their Corps individual permits and thus will need to be canceled altogether.”
In addition, executives for the trade associations submitted a sworn declaration laying out how they’re being harmed by the Corps guidance, as well as a host of other federal actions against the renewable energy sector. To illustrate those harms they laid out an example: French energy developer ENGIE, they said, was required to “re-engineer” its Empire Prairie wind and solar farm in Missouri because the guidance “effectively precludes” it from getting a permit from the Army Corps. This cost ENGIE millions of dollars, per the declaration, and extended the construction timeline while ultimately also making the project less efficient.
Notably, Empire Prairie is located entirely on private land. It isn’t entirely clear from the declaration why the project had to be redesigned, and there is scant publicly available information about it aside from a basic website. The area where Empire Prairie is being built, however, is tricky for development; segments of the project are located in counties – DeKalb and Andrew – that have 88 and 99 opposition risk scores, respectively, per Heatmap Pro.
Renewable energy developers require these water permits from the Army Corps when their construction zone includes more than half an acre of federally designated wetlands or bodies of water protected under the Rivers and Harbors Act. Neumann told me that developers with impacts of half an acre or less may skirt the need for a permit application if their project qualifies for what’s known as a “nationwide permit,” which only requires verification from the Corps that a company complies with the requirements.
Even the simple verification process for Corps permits has been short-circuited by other actions from the administration. Developers are currently unable to access a crucial database overseen by the Fish and Wildlife Service to determine whether their projects impacts species protected under the Endangered Species Act, which in turn effectively “prevents wind and solar developers from (among other things) obtaining Corps nationwide permits for their projects,” according to the declaration from trade group executives.
But hey, look on the bright side. At least the Trump administration is in the initial phases of trying to pare back federal wetlands protections. So there’s a chance that eliminating federal environmental protections might benefit some solar and wind companies out there. How many? It’s quite unclear given the ever-changing nature of wetlands designations and opaque data available on how many projects are being built within those areas.
Dane County, Wisconsin – The QTS data center project we’ve been tracking closely is now dead, after town staff in the host community of DeForest declared its plans “unfeasible.”
Marathon County, Wisconsin – Elsewhere in Wisconsin, this county just voted to lobby the state’s association of counties to fight for more local control over renewable energy development.
Huntington County, Indiana – Meanwhile in Indiana, we have yet another loud-and-proud county banning data centers.
DeKalb County, Georgia – This populous Atlanta-adjacent county is also on the precipice of a data center moratorium, but is waiting for pending state legislation before making a move.
New York – Multiple localities in the Empire State are yet again clamping down on battery storage. Let’s go over the damage for the battery bros.
A conversation with Georgia Conservation Voters’ Connie Di Cicco.
This week’s conversation is with Connie Di Cicco, legislative director for Georgia Conservation Voters. I reached out to Connie because I wanted to best understand last November’s Public Service Commission elections which, as I explained at the time, focused almost exclusively on data center development. I’ve been hearing from some of you that you want to hear more about how and why opposition to these projects has become so entrenched so quickly. Connie argues it’s because data centers are a multi-hit combo of issues at the top of voters’ minds right now.
The following conversation has been lightly edited for clarity.
So to start off Connie, how did we get here? What’s the tale of the tape on how data centers became a statewide election issue?
This has been about a year and a half-long evolution to where we are now. I started with GCV in about June of 2024 and I worked both the electoral and political sides. That meant I was working with PSC candidates.
People in other states have been dealing with data centers longer than we have and we’ve been taking our learnings from what they’ve been dealing with. We’ve been fortunate to be able to have them as resources.
There has been a coalition that has developed nationally and we have several groups that have developed within that coalition space who have helped us develop our site fight organizing, policy guidebooks, and legislative resources. It has been a tremendous assist to what we’re doing on the ground, because this is an ever-evolving situation. Almost like dealing with a virus or bacteria because it keeps mutating; as soon as you develop a tactic, the data centers react to that and you have to pivot, think of something else, and come up with a new strategy or tactic.
That’s been the last year and a half from the past summer to now. We worked on the Public Service Commission, flipping two seats this past legislative session. Now we have two more seats on the PSC looming in this next electoral year.
The next question I would ask is related to the role you view data centers will play in the coming election. Why do you think data centers are coming up? Help me understand what it is about data centers that has turned it into a potent political subject?
Georgia was in a really unique position in 2025 to have data centers at the forefront of the election. They were the only thing state-wide on the ballot because the PSC election was the only thing on the ballot. For the most part, Georgia has set up what is unique to Georgia: districted seats that the entire state can vote on. You have to live in the district to run for it but the entire state votes on it. And that meant we could message to the entire state what the PSC was, why it was important, and how it was going to affect people. Once you did that you were inevitably talking about data centers because that messaging became focused on affordability.
Once people understand what a PSC commissioner is, they know they regulate what you pay on your utility bill. If your bills are too high now, because the current PSC commissioners raised your rates six times in the past two years, there are more rate hikes looming in the future because of data centers. This is what’s coming.
Those were dots that were very easy for voters to connect.
We also had in the background and then the foreground data centers coming to people’s communities. Suddenly, random people were educated. They knew about closed-loop versus open-loop systems. They were asking questions suddenly about where water was coming from and why they didn’t know about these projects before they’re at the next local commission meeting. They’re telling me its only 50 decibels of noise. Are they going to cause cancer? The number of questions were tremendous and extremely sophisticated. People had been hearing about them, reading about them, and were knowledgeable until they connected all the dots.
You’re bringing up a really important phenomenon that, I’ll say, I’ve noticed when it comes to renewable energy projects and the opposition to projects: the populism I’ve seen in communities I’ve covered for the last year and a half here at Heatmap. So as someone who is trying to communicate against data center development but still trying to promote renewable energy, how do you walk that tightrope from a canvassing standpoint?
It’s a good question. Data centers are already coming. How we talk about data centers is, if they’re going to be here they need to be good neighbors.
We have made it open season here in Georgia. We left our credit card on the counter and said don’t do anything stupid only for us to come home and see there’s nothing left. What did you expect? There’s tax incentives for the data centers, there are no ordinances, they’ve allowed them to use our resources. They’ve come here because of our resources and our land and our access to fiber optics. Until we wrap our arms around it and put up some safeguards, and create rules for our teenagers when we go on Spring Break, then we can’t get a handle on how many of these are even going to be here and how much energy will be needed to power them.
We need to make limits. If you want incentives, okay – 30% of it needs to be green. If you want to build in a community, then okay – part of a CBA means you have to put up solar. They can be clean but we have to get a handle on protecting our resources, protecting the land and protecting our communities.
Do you see a change in the near-term when it comes to bringing data center development towards what you’d like to see, as opposed to just outright moratoria? Where is this opposition movement heading in Georgia?
We are just in the beginning phases of this. We see a lot of local opposition to data centers – 900 people coming out to county commissions. Like, we’re seeing unprecedented numbers.
What’s important is that power still rests with the elected officials. Unless they’re scared of losing power, it’s hard to actually change the rules. I think this state legislative session is going to be really important–
So how involved do you get at the local level on these data center fights?
So, those elected officials are on different schedules but people are showing up to meetings. We’re currently helping them organize and showing them best practices.
Now, I can’t dictate their messaging for them, because that’s county by county and the best people to do that are the people who live there, but we help coach them, tell them to pick a personal story, say how to show up, and wear bright-colored shirts. We have an entire tool kit that shows them the ABCs and 123s of organizing. What has worked in the past from other groups around the country for other groups to fight back.
But each county is different. Some counties may need the tax revenue. There’s a chance you may need one. So we say Georgians need to value Georgia and their resources need to be protected. We say, you need a solid community benefits agreement, this is what you should ask for and you need a lawyer.
Our position here is to help them get the resources and get connected. We pull from a lot of different sources and places who have been in this fight a lot longer.