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The Trump administration is now being lobbied to nix offshore wind projects already under construction.
Anti-wind activists have joined with well-connected figures in conservative legal and energy circles to privately lobby the Trump administration to undo permitting decisions by the National Oceanic and Atmospheric Administration, according to documents obtained by Heatmap.
Representatives of conservative think tanks and legal nonprofits — including the Caesar Rodney Institute, the Heartland Institute and Committee for a Constructive Tomorrow, or CFACT — sent a letter to Interior Secretary Doug Burgum dated February 11 requesting that the Trump administration “immediately revoke” letters from NOAA to 11 offshore wind projects authorizing “incidental takes,” a term of regulatory art referencing accidental and permissible harassment, injury, or potential deaths under federal endangered species and mammal protection laws. The letter lays out a number of perceived issues with how those approvals have historically been issued for offshore wind companies and claims the government has improperly analyzed the cumulative effects of adding offshore wind to the ocean’s existing industrialization. NOAA oversees marine species protection.
The letter also requested “an immediate cession of construction” at four offshore wind projects with federal approvals that have begun construction: Dominion Energy’s Coastal Virginia offshore wind project, Copenhagen Infrastructure Partners’ Vineyard Wind 1, and Ørsted’s Revolution Wind and Sunrise Wind projects.
“It is with a sense of real urgency we write you today,” the letter states, referencing Trump’s executive order targeting the offshore wind industry to ask that he go further. “[E]leven projects have already received approvals with four of those under construction. Leasing and permitting will be reviewed for these approved projects but may take time.”
I obtained the letter from Paul Kamenar, a longtime attorney in conservative legal circles currently with the D.C.-based National Legal and Policy Center, who told me the letter had been sent to the department this week. Kamenar is one of multiple attorneys involved in a lawsuit filed last year by Heartland and CFACT challenging permits for Dominion’s Coastal Virginia project over alleged potential impacts to the endangered North Atlantic right whale. We reported earlier this week that the government signaled in proceedings for that case it will review approvals for Coastal Virginia, the first indication that previous permits issued for offshore wind could be vulnerable to the Trump effect.
Kamenar described the request to Burgum as “a coalition letter,” and told me that “the new secretary there is sympathetic” to their complaints about offshore wind permits. “We’re hoping that this letter will basically reverse the letter[s] of authorizations, or have the agency go back,” Kamenar said, adding a message for Dominion and other developers implicated by the letter: “Just because the company has the approval doesn’t mean it’s all systems go.”
The Interior Department does not directly oversee NOAA – that’s the Commerce Department. But it does control the Bureau of Ocean Energy Management, which ultimately regulates all offshore wind development and issues final approvals.
Interior did not immediately respond to a request for comment on the letter.
Some signees of the document are part of a constellation of influential figures in the anti-renewables movement whose voices have been magnified in the new administration.
One of the letter’s two lead signatories is David Stevenson, director of the Center for Energy and Environmental Policy at the Caesar Rodney Institute, an organization involved in legal battles against offshore wind projects under development in the Mid-Atlantic. The Institute says on its website it is a member of the State Policy Network, a broad constellation of think tanks, legal advocacy groups, and nonprofits.
Multiple activists who signed onto the letter work with the Save Right Whales Coalition, a network of local organizations and activists. Coalition members have appeared with Republican lawmakers at field hearings and rallies over the past few years attacking offshore wind. They became especially influential in GOP politics after being featured in a film by outspoken renewables critic and famous liberal-turned-conservative Michael Shellenberger, who is himself involved in the Coalition. His film, Thrown to the Wind, blew up in right-wing media circles because it claimed to correlate whale deaths with offshore wind development.
When asked if the Coalition was formally involved in this request of the administration, Lisa Linowes, a co-founder of the Coalition, replied in an email: “The Coalition was not a signer of the request.”
One cosigner sure to turn heads: John Droz, a pioneer in the anti-wind activist movement who for years has given talks and offered roadmaps on how best to stop renewables projects.
The letter also includes an endorsement from Mandy Davis, who was involved with the draft anti-wind executive order we told you was sent to the Trump transition team before inauguration. CFACT also co-signed that draft order when it was transmitted to the transition team, according to correspondence reviewed by Heatmap.
Most of the signatories to the letter list their locations. Many of the individuals unrelated to bigger organizations list their locations as in Delaware or Maryland. Only a few signatories on the letter have locations in other states dealing with offshore wind projects.
On its face, this letter represents a new stage of Trump’s war on offshore wind.
Yes, he has frozen leasing, along with most permitting activity and even public meetings related to pending projects. But the president’s executive order targeting offshore wind opened the door to rescinding leases and previous permits. Doing so would produce new, costly legal battles for developers and for publicly-regulated utilities, ratepayers. Over the past few weeks, offshore wind developers with projects that got their permits under Biden have sought to reassure investors that at least they’ll be fine.
If this new request is heeded, that calm will subside.
Beyond that, reversing these authorizations could represent a scandal for scientific integrity at NOAA – or at least NOAA’s Fisheries division, the National Marine Fisheries Service. Heeding the letter’s requests would mean revisiting the findings of career scientists for what developers may argue are purely political reasons, or at minimum arbitrary ones.
This wouldn’t be the first time something like this has happened under Trump. In 2020, I used public records to prove that plans by career NOAA Fisheries employees to protect endangered whales from oil and gas exploration in the Atlantic were watered down after a political review. At the time, Democratic Representative Jared Huffman — now the top Democrat on the House Natural Resources Committee — told me that my reporting was evidence of potential scientific integrity issues at NOAA and represented “blatant scientific and environmental malpractice at the highest order.”
It’s worth emphasizing how much this mattered, not just for science but literally in court, as the decision to allow more seismic testing for oil under Trump was challenged at the time on the grounds that it was made arbitrarily.
Peter Corkeron, a former NOAA scientist with expertise researching the North Atlantic right whale, reviewed the letter to Burgum and told me in an email that essentially, the anti-offshore wind movement is exploiting similar arguments made by conservationists about issues with the federal government’s protection of the species to target this sector. The federal regulator has for many years faced the ire of conservation activists, who’ve said it does not go far enough to protect endangered species from more longstanding threats like fishing and vessel strikes.
If NOAA were to bow to this request, Corkeron wrote, he would interpret that as the agency’s failure to fully protect the species in good faith instead becoming “suborned by the hydrocarbon exploitation industry as a way of eliminating a competing form of energy production that should, in time, prove more beneficial for whales than what we’re currently doing.”
“The point on cumulative impacts is, on face value, fair,” he said. “The problem is its lack of context. Cumulative impacts on North Atlantic right whales from offshore wind are possible. However, in the context of the cumulative impacts of the shipping (vessel strike kills, noise pollution), and fishing (death, maiming, failure to breed) industries, they’ll be insignificant. Because NOAA has never clearly set out to address ways to offset other impacts while developing the offshore wind industry, these additive impacts place a burden on this new industry in ways that existing, and more damaging, industries don’t have to address.”
CFACT responded to a request for comment by sending me a press release with the letter attached that was not publicly available, and did not respond to the climate criticisms by press time. David Stevenson of the Caesar Rodney Institute sent me a statement criticizing offshore wind energy and questioning its ability to “lower global emissions.”
“The goal is to pause construction until everything is reviewed,” Stevenson said. When asked if there was an outcome where a review led to projects being built, he said no, calling offshore wind an “environmental wrecking ball.”
Well, we’ll soon find out what the real wrecking ball is.
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A conversation with Scott Cockerham of Latham and Watkins.
This week’s conversation is with Scott Cockerham, a partner with the law firm Latham and Watkins whose expertise I sought to help me best understand the Treasury Department’s recent guidance on the federal solar and wind tax credits. We focused on something you’ve probably been thinking about a lot: how to qualify for the “start construction” part of the new tax regime, which is the primary hurdle for anyone still in the thicket of a fight with local opposition.
The following is our chat lightly edited for clarity. Enjoy.
So can you explain what we’re looking at here with the guidance and its approach to what it considers the beginning of construction?
One of the reasons for the guidance was a distinction in the final version of the bill that treated wind and solar differently for purposes of tax credit phase-outs. They landed on those types of assets being placed in service by the end of 2027, or construction having to begin within 12 months of enactment – by July 4th, 2026. But as part of the final package, the Trump administration promised the House Freedom Caucus members they would tighten up what it means to ‘start construction’ for solar and wind assets in particular.
In terms of changes, probably the biggest difference is that for projects over 1.5 megawatts of output, you can no longer use a “5% safe harbor” to qualify projects. The 5% safe harbor was a construct in prior start of construction guidance saying you could begin construction by incurring 5% of your project cost. That will no longer be available for larger projects. Residential projects and other smaller solar projects will still have that available to them. But that is probably the biggest change.
The other avenue to start construction is called the “physical work test,” which requires the commencement of physical work of a significant nature. The work can either be performed on-site or it can be performed off-site by a vendor. The new guidance largely parrotted those rules from prior guidance and in many cases transferred the concepts word-for-word. So on the physical work side, not much changed.
Significantly, there’s another aspect of these rules that say you have to continue work once you start. It’s like asking if you really ran a race if you didn’t keep going to the finish line. Helpfully, the new guidance retains an old rule saying that you’re assumed to have worked continuously if you place in service within four calendar years after the year work began. So if you begin in 2025 you have until the end of 2029 to place in service without having to prove continuous work. There had been rumors about that four-year window being shortened, so the fact that it was retained is very helpful to project pipelines.
The other major point I’d highlight is that the effective date of the new guidance is September 2. There’s still a limited window between now and then to continue to access the old rules. This also provides greater certainty for developers who attempted to start construction under the old rules after July 4, 2025. They can be confident that what they did still works assuming it was consistent with the prior guidance.
On the construction start – what kinds of projects would’ve maybe opted to use the 5% cost metric before?
Generally speaking it has mostly been distributed generation and residential solar projects. On the utility scale side it had recently tended to be projects buying domestic modules where there might have been an angle to access the domestic content tax credit bonus as well.
For larger projects, the 5% test can be quite expensive. If you’re a 200-megawatt project, 5% of your project is not nothing – that actually can be quite high. I would say probably the majority of utility scale projects in recent years had relied on the manufacturing of transformers as the primary strategy.
So now that option is not available to utility scale projects anymore?
The domestic content bonus is still available, but prior to September 2 you can procure modules for a large project and potentially both begin construction and qualify for the domestic content bonus at the same time. Beginning September 2 the module procurement wouldn’t help that same project begin construction.
Okay, so help me understand what kinds of work will developers need to do in order to pass the physical work test here?
A lot of it is market-driven by preferences from tax equity investors and tax credit buyers and their tax counsel. Over the last 8 years or so transformer manufacturing has become quite popular. I expect that to continue to be an avenue people will pursue. Another avenue we see quite often is on-site physical work, so for a wind project for example that can involve digging foundations for your wind turbines, covering them with concrete slabs, and doing work for something called string roads – roads that go between your turbines primarily for operations and maintenance. On the solar side, it would be similar kinds of on-site work: foundation work, road work, driving piles, putting things up at the site.
One of the things that is more difficult about the physical work test as opposed to the 5% test is that it is subjective. I always tell people that more work is always better. In the first instance it’s likely up to whatever your financing party thinks is enough and that’s going to be a project-specific determination, typically.
Okay, and how much will permitting be a factor in passing the physical work test?
It depends. It can certainly affect on-site work if you don’t have access to the site yet. That is obviously problematic.
But it wouldn’t prevent you from doing an off-site physical work strategy. That would involve procuring a non-inventory item like a transformer for the project. So there are still different things you can do depending on the facts.
What’s your ultimate takeaway on the Treasury guidance overall?
It certainly makes beginning construction on wind and solar more difficult, but I think the overall reaction that I and others in the market have mostly had is that the guidance came out much better than people feared. There were a lot of rumors going around about things that could have been really problematic, but for the most part, other than the 5% test option going away, the sense is that not a whole lot changed. This is a positive result on the development side.
And more of the week’s most important news around renewable energy conflicts.
1. Carroll County, Arkansas – The head of an influential national right-wing advocacy group is now targeting a wind project in Arkansas, seeking federal intervention to block something that looked like it would be built.
2. Suffolk County, New York – EPA Administrator Lee Zeldin this week endorsed efforts by activists on Long Island to oppose energy storage in their neighborhoods.
3. Multiple counties, Indiana – This has been a very bad week for renewables in the Sooner state.
4. Brunswick County, North Carolina – Duke Energy is pouring cold water on anyone still interested in developing offshore wind off the coast of North Carolina.
5. Bell County, Texas – We have a solar transmission stand-off brewing in Texas, of all places.
Is there going to be a flight out of Nevada?
Donald Trump’s renewables permitting freeze is prompting solar companies to find an escape hatch from Nevada.
As I previously reported, the Interior Department has all but halted new approvals for solar and wind projects on federal lands. It was entirely unclear how that would affect transmission out west, including in the solar-friendly Nevada desert where major lines were in progress to help power both communities and a growing number of data centers. Shortly after the pause, I took notice of the fact that regulators quietly delayed the timetable by at least two weeks for a key line – the northern portion of NV Energy’s Greenlink project – that had been expected to connect to a litany of solar facilities. Interior told me it still planned to complete the project in September, but it also confirmed that projects specifically necessary for connecting solar onto the grid would face “enhanced” reviews.
Well, we have the latest update in this saga. It turns out NV Energy has actually been beseeching the Federal Energy Regulatory Commission to let solar projects previously planned for Greenlink bail from the interconnection queue without penalty. And the solar industry is now backing them up.
In a July 28 filing submitted after Interior began politically reviewing all renewables projects, NV Energy requested FERC provide a short-term penalty waiver to companies who may elect to leave the interconnection queue because their projects are no longer viable. Typically, companies are subject to financial penalties for withdrawals from the queue, a policy intended to keep developers from hogging a place in line with a risky project they might never build. Now, at least in the eyes of this key power company, it seems Trump’s pause has made that the case for far too many projects.
“It is important that non-viable projects be terminated or withdrawn so that the queue and any required restudies be updated as quickly as possible,” stated the filing, which was first reported by Utility Dive earlier this week. NV Energy also believes there is concern customers may seek to have their deals for power expected from these projects terminated under “force majeure" clauses, and so “the purpose of this waiver request is thus to both clear the queue to the extent possible and avoid unneeded disputes.”
On Monday, the Solar Energy Industries Association endorsed the request in a filing to the commission made in partnership with regional renewable trade group Interwest Energy Alliance. The support statement referenced both the recent de facto repeal of IRA credits as well as the permitting freeze, stating it now “appears that federal agency review staff are unsure how to proceed on solar projects.” This even includes projects on private lands, a concern first raised by Nevada Gov. Joe Lombardo, a Republican, after the permitting freeze came into effect.
The groups all but stated they anticipate companies will pull the plug on solar projects in Nevada, proclaiming that by granting the waiver, “it will encourage projects facing uncertainty due to recent legislation and federal action to exit the process sooner and without penalty, creating more certainty for the remaining projects.”
How this reads to me: Energy developers are understandably trying to figure out how to skate away from this increasingly risky situation as cleanly as they can. It’s anybody’s guess if FERC is willing to show lenience toward these developers.