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Hotspots

A Hail Mary Kansas Lawsuit Against the IRA

And more of the week’s top conflicts around renewable energy.

A Hail Mary Kansas Lawsuit Against the IRA
  1. Jackson County, Kansas — We’ve been covering anti-renewable lawsuits in the Trump 2.0 era closely at The Fight. But we now have a champion for the most aggressive lawsuit yet: a case filed against a single solar project intended to somehow kill … the entire Inflation Reduction Act?
    1. Three Kansas residents have gotten the support of five seasoned attorneys — including two Federalist Society alums — to sue the federal government claiming that projects benefiting from IRA tax credits should have to be reviewed under the National Environmental Policy Act, and that implementation of the IRA violated the Administrative Procedures Act.
    2. Their lawsuit, which was filed days before Trump took office, cites a single NextEra project in Kansas to make its claims of tangible damages.
    3. We asked the attorneys to comment on the lawsuit, as we’re wondering if this is an opening salvo before a broader legal effort to challenge IRA implementation.
    4. It’s worth saying this is obviously a huge ask of the administration, even in the Trump era. Not to mention it’s unclear how this legal complaint will fare with Trump’s decision to knock down NEPA implementing regulations (more on that in our Policy Watch section). But at a minimum, this is a noteworthy and novel attempt at what some may argue is a nuisance lawsuit — and indicates how conservative legal experts are finding common cause with disgruntled neighbors of renewables projects.
  2. St. James Parish, Louisiana — A state judge ruled this week that St. James Parish lawfully rejected what is believed to be one of the state’s largest solar projects.
    1. The Parish Council last year denied D.E. Shaw Renewables’ St. James Solar Energy Center which was supposed to connect to an Entergy substation as part of that utility’s solar and wind project pipeline.
    2. The rejection however came after years of local resistance to the project. D.E. Shaw took them to court after the most recent denial. But now they’ve lost, with a state judge ruling this week that they’ve failed to prove the council had good reason to say no.
    3. It’s a potential bad omen for Entergy’s efforts to complete the largest renewables expansion in state history.
  3. Alaska — We’ve never talked about Alaska here at The Fight but it’s time to do so, because renewables projects are having trouble up North.
    1. Renewable IPP is pulling the plug on a large solar project in Nikiski, a village southwest of Anchorage, citing uncertainty around federal funding and tax credits.
    2. The remote city of Kotzebue is trying to develop wind turbines to move its grid off of fossil fuels. But its money is tied up in the Trump funding freeze.
    3. Why am I watching this so closely? Alaska Governor Mike Dunleavy is quietly pro renewables. Its broader effort to use “all of the above” to market his state’s relevance in energy markets and its minerals tied to the energy transition.

Here’s what else I’m watching …

In Massachusetts, anti-wind activist Mary Chalke is running for a seat on the select board for the town of Nantucket. She’s well known for wearing a whale costume to protests.

In North Carolina, local pro-wind advocates hope Duke Energy’s land-based wind projects will be safe from the Trump administration.

In Washington State, Whitman County has imposed a wind moratorium.

In Virginia, Apex Clean Energy’s Rocky Forge solar project has survived a legal challenge.

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Q&A

How to Talk to Climate-Minded Investors About Data Centers

A chat with Colette Lamontagne, senior director for electric power at Ceres.

Colette Lamontagne.
Heatmap Illustration

This week’s conversation is with Colette Lamontagne, senior director for electric power at the sustainability finance advocacy group Ceres. Her team just released a shareholder engagement guide for the utility space around data center development. I’ve been wondering when the ESG crowd would enter into the AI infrastructure fray, so I asked if I could chat with Colette about what the guide could teach my lovely readers and whether the data center backlash portends a new wave of boardroom fights between electric companies and institutional investors.

Our conversation was lightly edited for clarity.

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Hotspots

The Most Important Data Center Vote You Haven’t Heard About

Plus more on this week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

1. Washtenaw County, Michigan — The Mitten State made itself the center of the data center backlash this week, as multiple AI skeptics won key Democratic congressional primaries. Yet the most significant election result wasn’t a primary vote, but rather a quiet referendum in a small town outside Ann Arbor.

  • On Tuesday, the town of Augusta voted by a nearly 9-1 margin to overturn a land use ordinance enacted by the township government the previous year allowing a data center on agricultural land. This means developer Thor Equities will either have to find a way around clear local rejection or abandon Augusta for its proposed data center.
  • Augusta sits on the border of Michigan’s 7th congressional district, where Sunrise Movement cofounder Will Lawrence pulled off a surprise upset against a moderate establishment-backed candidate. Lawrence’s victorious primary campaign was rooted almost entirely in advertising against data center development and tying his opposition to supporting the industry.
  • I believe the Augusta result proves the case made by Lawrence’s candidacy — voters will resoundingly back ways to fight data centers. A Lawrence campaign memo published by Politico after the primary makes the argument he will defeat incumbent Republican Tom Barrett almost entirely on this issue, too, calling it “the hyperscale elephant in the room.” The memo also claims there are “data center voters” who have “not traditionally been available to Democrats [but] have been highly motivated by hyperscale development in mid-Michigan.”
  • “Will’s strong stance on this issue and his consistency in showing up and standing alongside residents in data center fights expands his potential voter base in the general,” the memo states.

2. Travis County, Texas — I’ve been getting a lot of texts from sources about Texas Governor Greg Abbott issuing a stop to data center permitting. Let’s get into what really is happening here.

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Spotlight

How the National Park Service Wound Up in a Data Center Deal

The agency is reportedly considering a land swap that would allow AI infrastructure in one of northern Virginia’s largest green spaces.

The Prince William Forest Park entrance.
Heatmap Illustration/Getty Images

A national park site and Civil War conflict area in Virginia is now a battleground in the fight over data center development on federal real estate — and Congress is starting to get involved.

On July 23, the Prince William Times reported that Trump’s National Park Service is “considering a land swap” to allow “at least four data centers” on land within the boundaries of Prince William Forest Park in northern Virginia, one of the largest green spaces in the Washington D.C. metro area and a flashpoint during the Civil War. Since then, my colleagues and I have confirmed based on interviews with sources familiar with the plan, public lobbying disclosures, and previously unreported correspondence from Congress to the Park Service that, indeed, there has been a concerted behind-the-scenes effort to make this swap happen, going back more than a year. Many of those concerned about the idea of this exchange told me they’ve been unable to get clear answers from the Park Service on the likelihood of the swap.

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