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Spotlight

A Wave of Anti-Renewables Bills Hits State Legislatures

It’s not just Trump.

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Texas and Oklahoma
Heatmap Illustration/Getty Images

State legislatures are now a crucial battleground for the future of renewable energy, as Republican lawmakers seek massive restrictions and punitive measures on new solar and wind projects.

Once a hyperlocal affair, the campaign to curtail renewable energy development now includes state-wide setbacks, regulations, and taxes curtailing wind and solar power. As we previously reported, Oklahoma is one of those states – and may as soon as this year enact mandatory setback requirements on wind power facilities, despite getting nearly half its electricity from wind farms. According to a Heatmap Pro analysis, these rules would affect 65 of Oklahoma’s 77 counties.

Oklahoma is far from alone in potentially restricting land use. In Arizona, the State House last month passed legislation that according to one analysis would lock wind developers off more than 90% of all land in the state. Roughly half of the remaining available acreage would be on Native tribal lands and in or near national parks, which are especially tough areas to build wind turbines. The bill is currently pending before the state Senate. There isn’t much wind energy in Arizona but utilities, who’ve been mostly mum on the legislation so far, have been trying to build more wind and solar in order to wean off coal and gas power. Unfortunately, according to the Arizona Republic, this legislation was reportedly prompted by the backlash to a specific new wind project: Lava Run, a 500-megawatt wind project in the state’s White Mountains opposed by nearby residents.

When asked if the project would ultimately be built, Repsol – Lava Run’s developer – simply told me the company “believes that wind energy in Arizona represents an opportunity to benefit local communities and the state as a whole.”

Republican states have passed legislation to restrict renewables development in certain areas before, so this isn’t exactly a novel development. Florida last year banned all offshore wind projects, and in Ohio, a recent law empowering localities to block solar and wind projects has significantly curtailed industry investment in the state. Wisconsin Republicans are trying to enact similar legislation as soon as this year.

But the sweeping quickness of this legislative effort is striking – and transcends land use rules. Elsewhere, development restrictions may come in the form of tax increases, like in Idaho where the chief revenue committee in the state House has unanimously approved legislation that would institute a per-foot excise tax on individual wind turbines taller than 100 feet without local approval. (The average wind turbine is 320-feet tall.) In Missouri, Republican state legislators are advancing legislation that would create additional taxes for building solar projects on agricultural land, a proposal that echoes an effort underway in the U.S. Congress to strip tax benefits from such projects. And Ohio Republicans have introduced plans to axe all existing state subsidies for solar project construction and operation.

Then there’s the situation in Texas, where state Republican lawmakers are expected to revive a bill requiring solar and wind projects to get express approval from the Public Utilities Commission – a process that fossil fuel projects do not have to go through. The state is the nation’s top producer of renewable energy, generating over 169,000 gigawatt-hours last year.

The legislation passed one legislative chamber in the previous session and environmental activists are starting to sound the alarm that it could get even greater traction this go-around. Luke Metzger, executive director of Environment America’s Texas division, told me that if it becomes law, it would likely undermine investor confidence in developing solar and wind in Texas for the foreseeable future. “It’s very unclear if they could get a permit” under the bill, Metzger said. “If some wealthy Texans didn’t want a solar farm near their ranch, they could convince the PUC to reject their permit.”

Metzger said he is also worried that Texas acting to restrict renewables would produce similar regulation in other parts of the country given the state’s legacy role as a conservative policy braintrust.

“You could have this ripple effect that could end the industry,” Metzger said, “at least in several other states.”

The aggressive and rapid approach sweeping state legislatures has yet to get a national spotlight, so I'm curious how the renewables trade groups are handling these bills.

I asked American Clean Power and the Solar Energy Industries Association if they have any data on the rise of anti-renewables legislation and whether they have comments on this trend. Neither organization responded with data on how many states may soon pass renewables restrictions, but they did get back to me quite fast with comments. SEIA provided a statement from Sarah Birmingham, their vice president of state affairs, noting that energy demand “is rising across the country and we need all the electricity we can get, fast.” The group also pointed to polling it commissioned on solar energy popularity in Texas and a report it just happened to release in January touting the benefits solar can provide to the state’s revenue base.

ACP meanwhile provided me with a similar statement to SEIA’s, defending renewables and criticizing state bills restricting solar and wind project development.

“Reducing their growth at state and local levels stifles innovation, raises consumer energy costs, and hinders a cleaner, more reliable grid, leaving communities vulnerable to energy shortages,” said spokesman Jason Ryan.

It’s clear some legislators agree with ACP. In Montana, legislation targeting wind turbine height is stuttering after a large cadre of industry representatives and property owners complained it would kill development entirely and kneecap tax revenue to the sparsely populated state. And in Mississippi, lawmakers appear to have abandoned efforts to enact a one-year moratorium on wind turbines for a study on the industry’s impacts on agriculture.

But it’s only March. I guess we’ll have to wait and see how aggressive – and how public – the fight over these bills this year will become.

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Hotspots

Meta Data Center Federal Pipeline Review Due Early Next Year

And more of the week’s top fights around development.

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The United States.
Heatmap Illustration/Getty Images

1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.

  • On Wednesday, the Federal Energy Regulatory Commission laid out plans for an environmental assessment of the Entergy pipeline for the Meta data center under the National Environmental Policy Act and stated it’ll be issued in early January 2027. Federal agencies have been ordered by the panel to complete any remaining decisions on authorizations by April.
  • The decision to do an environmental assessment under NEPA will be controversial. The Sierra Club filed comments to FERC stating they wanted an environmental impact statement instead that took into account the environmental impacts of the data center being fed by the pipeline, as well as a review of the project’s cumulative impacts, as the activist group said they’re explicitly linked to the data center’s operations. “The power stations and data center are not remote or speculative developments unrelated to the proposed action,” their comments read.
  • This is quite similar to what’s playing out with the Green Chile pipeline in New Mexico for Oracle and OpenAI’s Project Jupiter, which we recently explained could turn into litigation with high stakes for future gas pipelines linked to data centers. But to me, this conflict with Meta feels like it has more at stake for this individual project, as it’s playing out while construction on gas power plants for the data center has been underway for almost a year after earlier being blessed by state regulators.
  • I asked Sierra Club what could happen next. Eric Huber, one of their managing attorneys, told me on Thursday, “I heard the EA is expected in January, but we are in wait and see mode and will decide on further steps when it comes out.” Meta and Entergy did not respond to a request for comment.

2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.

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Plus

Is the Election Really About Data Centers?

Talking with Kevin Gundersen, the head of public affairs for Digital Realty.

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Kevin Gundersen
Heatmap Illustration

This week’s conversation is with Kevin Gundersen, head of public affairs for data center developer Digital Realty. On Wednesday, Digital Realty released a fascinating poll as part of Infrastructure for America, a pro-data center organization that also includes Compass, Vantage Data Centers, and QTS. The poll pushed back on the idea that we’re currently in the middle of a “data center election”; instead, it found most voters are not expected to choose their national elected officials based on a politician’s stance on data centers.

I reached out to folks involved in the poll's release, and they put me in touch with Gundersen, whom I’ve met before and consider to be a straight shooter. He accepted my invitation to do a candid hot-seat chat about the findings, his thoughts on all the data center attack ads, and whether his industry’s actually recovering any ground with the American people.

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Spotlight

Trump Hasn’t Been Advancing New Wind Farms During Permitting Talks

Only upgrades for pre-existing wind projects have been approved.

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Donald Trump.
Heatmap Illustration/Getty Images

In September, the Trump administration told a reporter that the president directed the Pentagon to finally process wind projects through routine airspace approvals as required under a court order. By doing this, it created the appearance of real headway and good faith in talks with Democrats in Congress on energy permitting legislation before the November midterm elections.

But the White House’s assurances are not what they seem.

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