This article is exclusively
for Heatmap Plus subscribers.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Let's dive deep into the campaign against the so-called “high-risk” cables.
One of the biggest threats to American offshore wind is a handful of homeowners on the south Jersey shoreline spouting unproven theories about magnetic fields.
Within a year of forming, the activist group “Stop The High-Risk Cables” has galvanized local politicians against the transmission infrastructure being planned for wind turbines off the coast of New Jersey known as the Larrabee Pre-built Infrastructure. The transmission route, which will run a few miles from the beaches of Sea Girt, New Jersey, to a substation nearby, is expected to be a crucial landing zone for power from major offshore wind projects in south Jersey waters, including Atlantic Shores, a joint venture between EDF Renewables and Shell that received final permits from federal regulators last week.
The only problem: while state regulators have been busy planning the route for the transmission and selecting who will build it, opponents have managed to win the war of public opinion. Activists have clearly turned their neighbors against the plan, pushing the mayors of the four boroughs targeted for Pre-Built Infrastructure to come out against the project. And this weekend Jack Ciattarelli – who narrowly lost the race for the governor’s mansion last year and is running again in 2025 – joined activists rallying against the project and is now campaigning on ending the project and cable landings like it.
Since federal regulators control the waters, what this means is, unless Democrats hit the electoral jackpot over the next year, offshore wind in New Jersey could be screwed – even if Kamala Harris wins the White House.
What makes this more dire is, this isn’t any ol’ transmission. For other offshore wind projects like Empire Wind, states have forced developers to design and construct their own transmission landings, creating a somewhat disorganized situation resembling electrical spaghetti. New Jersey’s offshore wind transmission meanwhile has been studied for years and is supposed to minimize development on the shoreline. This means the combat over this cabling could decide the fates of multiple offshore wind projects – and the first major proactive plan to reduce beach-level environmental impacts that stymie offshore wind in the first place.
So I decided to dive deep into the campaign against the so-called “high-risk” cables. After a series of interviews with organizers and a mayor critical of the state’s processes, I’ve been left feeling this relatively small transmission project represents a true test for democracy’s role in climate action. Could a small band of organized individuals be all it takes to hold back decarbonization at the pace scientists say is necessary, no matter how many climate laws are passed?
Sea Girt resident Kimberly Paterson remembers when she first heard about the cables. Someone had left a postcard on her door about the project. Before that, the professional executive leadership trainer had devoted her activism to preserving maritime forests on the beach. Once made aware of the transmission cables though, she and her small coterie of environmentally-conscious neighbors got active.
Paterson said they also started getting looped in with an existing network of activists concerned about offshore wind infrastructure. Those activists included familiar characters to the fight over New Jersey offshore wind development.
People like Mike Dean of Save the East Coast and Cindy Zipf of Clean Ocean Action, who’ve spread theories without evidence about a spate of whale deaths being tied to pile drivers for offshore wind. She says her group’s work is focused on the cables, not offshore wind, despite the close allyship with these other actors. As she simply put it, “There’s a circle of people that you meet.”
“We do like to work with others, and communicate with others, but we’re not officially tied to any of those other groups.”
The group also started canvassing, making signage for homeowners, and holding public events. As calls for action grew, so too did the political focus on the area, as state legislators and members of Congress took up the issue.
“We have created an absolute firestorm here,” Paterson told me. ‘It is unbelievable what we’ve accomplished.”
The group is focused on what they believe to be the health risks of simply being near high-voltage power lines.
To understand their fears, think of an electric current going through a wire. The more current goes through a wire, the higher likelihood of electrical waves emanating from the current’s pathway. That’s where “electro-magnetic fields” come into play. These fields are all around us and even Earth emits them. It’s the result of an excess of energy.
The World Health Organization classifies even low amounts of electromagnetic fields as a possible carcinogen, citing studies around exposure and childhood leukemia rates. But as many environmental and health experts note, studies to date have not really linked cancer occurrences to prolonged exposure to these fields. The Bureau of Ocean Energy Management says the electro-magnetic fields created by cables for offshore wind “are well below the recommended threshold values for human exposure.” So like whales and wind, it’s something to watch out for, but there’s no evidence to date of a danger here.
Nonetheless, seeking to calm any resident’s fears of magnetic fields, the New Jersey Board of Public Utilities last week convened their first public hearing within the planned development area.
At the event, numerous officials came and spoke to the project’s safety, including the executive director of the Board. They even played a long explanatory video from a consultant they hired to review the electro-magnetic fields that would come from the cables. The full presentation laid out numerous examples of what they said were similar underground and underwater transmission lines with magnetic emissions that had no discernable impact on public health, including lines in the New Jersey-New York region.
One person moved by the presentation’s efforts on magnetic fields was Mike Mangan, mayor of Manasquan, one of the boroughs that may be selected to host some of the transmission infrastructure. Mangan told me he joined with other mayors to press the state for more transparency on the cables at the behest of concerned constituents. But he didn’t know what the state knew about the magnetic fields.
“I’ll just be candid — I was ignorant on a lot of that,” he acknowledged. Mangan said he still has “a few very serious concerns” but “I think they addressed some of the bigger concerns,” including the magnetic fields.
I’ll admit, I felt the same. So far in The Fight, we’ve chronicled examples where there are at least somewhat reasonable concerns about renewable energy development – stuff like batteries sited in wildfire risk areas and solar farms in imperiled tortoise habitat. But in this case, I watched the entire presentation online and left thinking this was essentially a non-issue.
Yet Paterson says she was unconvinced by the presentation. The projects they’re citing aren’t comparable, she claims. And then she has a laundry list of other complaints about the potential cables.
Hearing her talk about the transmission, you’d think she just doesn’t want this built under any circumstances. So I asked her if, given her allies, the goal is to stop offshore wind. An avid wildlife painter, she says no, and that she’s “very strongly in support of alternative energy.”
Well, okay. Maybe it’s political or partisan then? I asked her who she’s voting for in this year’s presidential election. “I don’t like anyone in the election to be quite honest,” she confessed, self-identifying simply as a “libertarian.” She then added: “I love the idea of Robert F. Kennedy [Jr.] revolutionizing our health-care system. That makes me very excited.”
Last week, Heatmap published a risk index of the top 10 renewable energy projects worth watching for potential cancellation or major blowback to the energy transition.
We listed Atlantic Shores in the top five, primarily citing the project’s current role as a focal point for opponents to offshore wind up and down the Atlantic coastline. Hours after the risk index was published, Atlantic Shores received its final approval from the Bureau of Ocean Energy Management.
Despite that win, we’re leaving the project on the index because the cables have to be built too – and that stands to be a more stressful fight.
It wasn’t supposed to be hard. In 2021, New Jersey passed a law granting the Board of Public Utilities the authority to supersede local governments opposing easements and other permits for offshore wind transmission cables. But that law’s permissibility under the state constitution hasn’t been tested yet, thanks to the cancellation of Orsted’s Ocean Wind project, which was set to be the likeliest battleground over cables before Atlantic Shores.
State officials are expected in the coming weeks to lay out who will actually build the transmission infrastructure and the route it’ll take from Sea Girt to the Larrabee substation. Between the day of that announcement and the completion of construction, a lot can go awry. Donald Trump could win the presidency and, as opponents of offshore wind expect, revisit permitting decisions for projects like Atlantic Shores. Or a Republican like Jack Ciattarelli could win the governor’s mansion, and that person could take any number of steps to undermine the cables like leaving the local control law undefended in state court if it’s challenged.
All this risk to the energy transition, started by a handful of actors with unfounded claims about magnetic fields.
I asked Atlantic Shores for comment on the opposition movement. They did not get back to me.
However, I did hear from the New Jersey Offshore Wind Alliance, a consortium of developers trying to build offshore wind off the state coast. “While we are advocates of civil discourse and engagement from communities, we urge residents to be mindful of prevalent misinformation,” said Paulina O’Connor, executive director of the alliance, in a statement sent to me Tuesday evening.
“By following best practices in environmental science and engineering, such as proper siting, minimizing disruption during construction, and adherence to all state and federal regulations, this infrastructure can be safely and responsibly integrated into our communities and local and regional power grids to provide resilient and reliable power to New Jersey homes,” O’Connor continued.
I also heard from Anjuli Ramos-Busot, executive director of Sierra Club’s New Jersey chapter, who contacted me last night after Atlantic Shores and the offshore wind alliance brought my reporting to their attention.
“Let us be clear, the microwave in your kitchen emits more electromagnetic currents than cables buried deep underground covered by insulation and concrete,” Ramos-Busot said in a statement. “This technology is vetted, goes through rigorous permitting standards, and is safe and responsible for both the environment and local communities.”
Candidly, I’m holding my breath on whether Sierra Club’s words will win over these concerned shore residents.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
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.