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Hotspots

A Hail Mary Kansas Lawsuit Against the IRA

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

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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 Channel Voters’ Anxieties About Data Centers

A conversation with the Guardrails Alliance’s Shaunna Thomas.

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Shaunna Thomas of the Democrat-allied super PAC Guardrails Alliance, which describes itself as “not anti-technology” but supportive of AI “rules, accountability, and a government that actually represents the public.” Part of that AI accountability they’re calling for is on data centers.

After the midterms, Guardrails Alliance sent a memorandum to all House and Senate Democratic offices arguing for AI and data center accountability to be a key part of their message and plans heading into the new Congress. Described as a “playbook for how to understand and channel anxieties about AI and data centers,” the document laid out “key narratives” that they said voters who care about these issues want to see reflected and echoed by their politics. They said the push against data centers could help Democrats build more lasting political power.

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Hotspots

Consider the Lobstermen Affected by New York’s Empire Wind

Plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. New York City — We have a new must-watch offshore wind lawsuit with potential implications for the entire sector — and this time, it’s from lobstermen seeking damages.

  • In late October, a family of lobstermen sued Equinor in federal court claiming the company’s compensatory mitigation program is failing to adequately make up for alleged negative impacts to lobster fishing grounds in the New York Bight. According to the lawsuit, the wind project irreparably hurt fishing in previously trafficked waters. The suit also claims that Empire Wind construction destroyed lobster fishing pots and seeks at least $75,000 in damages as well as punitive damages and attorneys’ fees.
  • The lawsuit is the first I have seen involving someone in aquaculture suing for damages over negative impacts of an already-constructed wind project, and it carries outsized implications as the Trump administration remands without vacatur the construction and operations plans for other offshore wind farms. This case is far from being decided, but that doesn’t matter: It is precisely the kind of complaint that Trump officials are likely to consider as they mull revisions to operational plans.
  • An Equinor spokesman declined to comment on the case, telling me they don’t speak on pending litigation.

2. Hinds County, Mississippi — The largest proposed solar farm in Mississippi is moving forward after an appeals court rejected arguments from aggrieved local residents that it had been improperly approved.

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Spotlight

Data Center Developers Can’t Pay People Enough to Accept Them

Trump’s “data center dividend” appears to have backfired. Our latest poll results help explain why.

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Donald Trump and data center protesters.
Heatmap Illustration/Getty Images

This year’s midterm elections called into question the efficacy of a push to pay local residents directly in exchange for building data centers.

Before the elections, I profiled the campaign for politicians to embrace the data center “dividend,” a policy idea modeled off Alaska’s Permanent Fund, which doles out checks to residents from profits off state oil, gas and mineral royalties. The Bitcoin Policy Institute, a tech policy think tank, was one of the first to trumpet the concept, but it was quickly taken up by President Donald Trump, who started raising it in speeches and on social media. “If companies want to make their Data Centers popular, pay the community, and/or individuals within the community, a ‘dividend,’” Trump posted to Truth Social on October 21.

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