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Spotlight

Offshore Wind’s Existential Crisis at Climate Week

Can the industry ever recover?

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A wind turbine and Chris Wright.
Heatmap Illustration/Getty Images, Luke Liu

American offshore wind’s existential crisis was laid bare at this year’s Climate Week.

California and New York officials gathered on Tuesday at the New York Bar Association in Manhattan to tell attendees of the annual climate action mega-event about their efforts to hold the Trump administration to account. After Trump regulators upended wind projects off the East Coast and struck buyout trades with energy developers to ditch ocean wind leases, both states filed fresh legal action against the administration, targeting what they said were egregious abuses of taxpayer dollars that canceled once-promising projects that would’ve given gigawatts of power to grids expecting energy demand to spike.

“Every megawatt in offshore wind power is not a megawatt of fossil fuel generated power. That’s really important. That means fewer emissions that contribute to respiratory and cardiac disease,” Lem Srolovic, bureau chief of the New York attorney general’s environmental protection bureau, said at the event, as he and California attorney general Rob Bonta laid out the view that Trump’s actions against offshore wind were illegal.

The federal courts have concurred thus far, and it’s possible more judges will agree. But later in the event, Doreen Harris – CEO and President of the New York State Energy Research and Development Authority – said the quiet part out loud.

“Ultimately, the challenge we have in litigation is that even if successful, we deal with realities of what a commercial entity would do in response to these risks. That remains unresolved,” Harris confessed. “How do we move to an investable future for energy infrastructure if this is the way energy infrastructure has to be advanced?”

Indeed, more litigation clearly isn’t going to help the offshore wind sector’s prospects. As we’ve reported on time and again, the Trump administration has not only used every regulatory lever imaginable – and some once unimaginable – to delay wind farms, both on and offshore. But it has gone beyond the legal, now stalling onshore wind in ways industry says stretches the boundaries of court remedy. If that’s the case on solid ground, what future could possibly exist in the U.S. for an industry that must build entirely in federal waters? And even if Trump leaves office providing for a more industry-friendly president, couldn’t a future successor undo whatever they do as well?

“There may be some hesitancy to reinvest in offshore wind in the U.S. given what has happened in the Trump administration,” Kevin Beicke, vice president of project finance at Morningstar DBRS, told me in a phone interview. This week Morningstar, a leading market analysis firm, agreed with Harris’ assessment and reaffirmed a negative outlook for the entire American offshore wind industry through at least 2028 – adding the future beyond that horizon is essentially unknown.

“It’s my view these companies would need to see some kind of substantial support for their industry if they were to try and get back into it under a future administration. And public support would be needed to support a future administration providing regulatory and financial support to the U.S. offshore wind industry.”

So this begs the question: why are states bothering with litigation they probably know won’t improve the offshore wind sector’s fortunes in the near term?

Harris told me after the event that part of the litigation is to provide a signal to the business community that they shouldn’t abandon the U.S. offshore wind industry in the future.

“Very much so. It’s a move intended not only to preserve the processes and systems that are supposed to apply but also to say, ‘We are here because we are committed to the resource, and we’re committed to the companies developing it, and they can consider a state a partner to realize those outcomes.’ That’s what we want them to understand,” she told me.

Harris’ indignation didn’t surprise me, but it was especially prescient, as New York City’s annual Climate Week chaos became embroiled in a “will they or won’t they” news cycle around Trump’s freeze on wind energy permits. During the offshore wind event, news broke in Politico that President Trump told Interior Secretary Doug Burgum and Energy Secretary Chris Wright that he agreed to “green-light wind energy projects to strike [a] permitting deal” and that they’d “lift” the “blockade of renewable energy projects to get Senate Democrats moving on permitting.” The next day, at Heatmap House, Wright himself declined to speak declaratively on that report, instead signalling the issue was still a live ball. But he said a permitting deal would address concerns about “easier to build everything in America.”

Wright also suggested the administration had actively debated the de facto freeze on height clearances for wind turbines, which has essentially snagged the entire sector. “Wind has been very controversial and there have been spirited dialogues in the administration about this,” Wright told my colleague Robinson Meyer. “I do believe a successful permitting reform thing changes the playing field for anything you want to build in this country, including wind.”

When I asked Harris about the Politico report, she told me she’d rather focus on the courts. The same goes for California Energy Commission chair David Hochschild, who told me he doesn’t believe anonymous reports about a president “who also promised no new endless wars.”

“We want to make it crystal clear we’re going to fight for this and our support [for offshore wind] is going to continue,” Hochschild said. “The legal fight we’re engaged in now is necessary but not sufficient. We have a lot more work to do to build the ecosystem that’s necessary for this to come to fruition. For research and development. For permitting. For infrastructure. It’s a lot of work but we’ve done this before. All these barriers existed when we started with solar in the early days when there was skepticism.”

Yellow

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Q&A

Why the Wilderness Society Backs a Data Center Moratorium

Talking with Dan Hartinger, the land conservation group’s senior policy director.

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The Q&A subject.
Heatmap Illustration

This week’s Q&A is with Dan Hartinger, senior policy director for The Wilderness Society, a prominent land conservation organization in D.C. that this week called for a moratorium on data center development on public land. The public statement was relatively scant on details about the group’s stance, and a decade of reporting on policy in Washington has taught me that its positions are quite influential, especially in more traditional outdoor recreation and conservationist circles that are also often bipartisan. So I reached out and asked if someone could further explain the society’s position, and Dan obliged.

The following chat was lightly edited for clarity.

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Hotspots

Data Center Outrage Catches Up to Renewables Outrage in Michigan

Plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. Central Michigan – I regret to inform you of this back-and-forth between candidates running for Congress and a would-be constituent because it’s a warning sign for the renewable energy sector (and sort of broke my brain).

  • This week brought the first and likely only debate between Rep. Tom Barrett and Sunrise Movement cofounder Will Lawrence, who are locked in a tight contest over the Michigan 7th congressional district. As I’ve written, their race is a must-watch not only for control of the U.S. House but also the political fortunes of the data center sector.
  • The debate contained a remarkable exchange: Moderators played taped remarks from Paula Caltrider, identified as “a local resident” in the city of Mason to ask the candidates a question about data centers. Instead, she offered a comment. “You know, you can’t be a part of this no data center movement without renouncing the large solar farms and dangerous battery storage facilities that power these data centers.” (Quick TL;DR on Caltrider: She’s been quoted in national media coverage of the data center backlash and last year won a legal settlement after allegedly being fired for refusing a vaccine mandate.)
  • Barrett then ran with Caltrider’s baton. “I appreciate Paula linking these together, the stripping away of local control that took place in pursuit of this Green New Deal agenda in Lansing that took away control from communities” – a reference to the state’s primacy law that other Michigan Republican candidates have opposed.
  • Lawrence, whose support for a federal data center moratorium made him a national political test case, did not take the bait, nor did he criticize renewable energy. Instead, this part of the debate became a tit-for-tat about whether the sitting congressman once backed tax breaks for data centers. “He stuck his finger up into the wind, saw which way it was blowing, did a complete 180 on this issue,” Lawrence said. Then Barrett and Lawrence got into a confusing back-and-forth about whether the Inflation Reduction Act was a giveaway to data centers.
  • To the best of my knowledge, this is the first time the Data Center Trojan Horse has reared its ugly head on any kind of prominent debate stage, but it won’t be the last. For example: The Wisconsin gubernatorial debate is Oct. 21, and we’ve warned you about that one.

2. Doña Ana County, New Mexico – I suggest you pay closer attention to the federal permitting fight playing out over Oracle’s Project Jupiter.

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Spotlight

The Data Center Backlash Is Coming for Permitting Reform

The Senate’s compromise bill enters the chat at a moment when federal land and anti-pipeline advocates are already quite activated.

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The Capitol and a data center.
Heatmap Illustration/Getty Images

The AI data center backlash is getting louder in D.C. ahead of the midterms – and it’s poised to collide head-on with the new permitting reform deal being negotiated in Congress.

This week, major environmental advocacy organizations are taking large public steps to lean in on the data center fight. The League of Conservation Voters and Natural Resources Defense Council, I’ve been told, are imminently announcing a $250,000 ad buy in the Washington, D.C. market focused entirely on decrying fossil fuel-powered data centers and Trump administration policies to speed up their construction. The Wilderness Society, a prominent land conservation organization, announced it now supports a moratorium against data centers on “public lands” focused on the roughly half billion acres under the Interior Department’s stewardship. And Earthjustice on Thursday did a detailed report claiming that 80% of the data centers under development “bringing their own power” are going to rely on gas generation.

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