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Spotlight

A Wave of Anti-Renewables Bills Hits State Legislatures

It’s not just Trump.

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

People Who Hate Renewables Hate Data Centers, Too

And more thoughts on the week’s most notable fights around project development.

The United States.
Heatmap Illustration/Getty Images

1. Pinal County, Arizona – If you can’t build a solar or a wind farm somewhere, it’s really hard to get a data center built there too.

  • That’s the lesson readers should take away from the situation in Pinal County, where historically speaking at least 5 solar projects have been withdrawn over the years after facing local opposition, according to Heatmap Pro data. You should expect some data centers to potentially wind up in the same graveyard.
  • On Wednesday, the Pinal County Board of Supervisors rejected the La Osa Energy Center, a large proposed data center and gas-fired power complex. The board in this deep red rural desert community is rock-ribbed Republican. Only one supervisor on the board dissented, citing private property rights concerns.
  • The county currently has a restrictive ordinance against data center development unless they are in industrial areas, but has not yet approved a project since the ordinance was crafted, making this now a de facto no-go zone for developers. This went against the requests of the county zoning board, which recommended making the project site as industrial. If that pattern sounds familiar to you, that’s because you recognize it from the many cases we’ve seen in solar and wind development where political officials similarly override zoning staff.

2. St. Joseph County, Indiana – Thousands of miles away from Arizona, a similar division is dominating the fight over whether to enact a 2-year moratorium on data centers in the county home of South Bend.

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Q&A

What Nevada’s Democratic Candidate for Governor Would Do About Data Centers

A conversation with Nevada attorney general Aaron Ford

Aaron Ford.
Heatmap Illustration

This week’s conversation is with Nevada attorney general Aaron Ford, the Democratic candidate for governor in the state. His campaign reached out recently asking if I wanted to chat about what he’d want to do on data center and energy policy, which is essentially catnip for a reporter like me. So we hopped on the phone and chatted about his approach to regulation as he seeks to oust the sitting GOP governor Joe Lombardo.

The following conversation was lightly edited and abridged for clarity.

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Spotlight

The Top Five States to Watch for Clean Energy Policy

What’s the matter with Wisconsin?

The Texas statehouse and clean energy.
Heatmap Illustration/Getty Images

The most important states to watch for the future of renewable energy policy sit at the nexus of the data center backlash.

Over the last week, I’ve pored over what I believe to be the top five most important spaces to watch for all things utility-scale solar, battery storage and transmission development: Texas, California, Arizona, Alabama and Wisconsin. I selected these five states because they either have some of the largest generation capacity (Texas, California, Arizona) or crucial statewide elections that could decide not only the future of renewable energy in the state but elsewhere across the country (Alabama, Wisconsin).

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