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The American Clean Power Association wrote to its members about federal guidance that has been “widely variable and changing quickly.”

Chaos within the Trump administration has all but paralyzed environmental permitting decisions on solar and wind projects in crucial government offices, including sign-offs needed for projects on private lands.
According to an internal memo issued by the American Clean Power Association, the renewables trade association that represents the largest U.S. solar and wind developers, Trump’s Day One executive order putting a 60-day freeze on final decisions for renewable energy projects on federal lands has also ground key pre-decisional work in government offices responsible for wetlands and species protection to a halt. Renewables developers and their representatives in Washington have pressed the government for answers, yet received inconsistent information on its approach to renewables permitting that varies between lower level regional offices.
In other words, despite years of the Republican Party inching slowly toward “all of the above” energy and climate rhetoric that seemed to leave room for renewables, solar and wind developers have so far found themselves at times shut out of the second Trump administration.
ACP’s memo, which is dated February 3 and was sent to its members, states that companies are facing major challenges getting specific sign-offs and guidance from the Army Corps of Engineers, which handles wetlands permits, as well as the Fish and Wildlife Service, our nation’s primary office for endangered species and migratory bird regulation.
Federal environmental protection laws require that large construction projects — even those on state and private lands — seek direction from these agencies before building can commence. Wetlands permitting has long been the job of the Army Corps, which determines whether particularly wet areas are protected under the Clean Water Act. Wetlands have historically been a vector for opponents of large pipelines and mines, as such areas are often co-located with sensitive ecosystems that activists want to preserve.
Fish and Wildlife, meanwhile, often must weigh in on development far from federal acreage because, according to the agency, two-thirds of federally listed species have at least some habitat on private land. FWS also handles the conservation of bird species that migrate between the U.S. and Canada, which are protected under the Migratory Bird Treaty Act. Any changes to federal bird consultation could impact wind developers because turbine blades can kill birds.
Now, apparently, all those important decision-makers are getting harder to read — or even reach. Army Corps district activity has become “widely variable” and is “changing quickly,” per the memo, with at least two districts indicating that for “wind or solar projects” they “will not be issuing any JDs,” meaning jurisdictional determinations for federally protected wetlands — that is, they won’t even say whether federal wetlands are present at a construction site or not. According to the Army Corps, receiving a JD is optional, but it is nevertheless an essential tool for developers trying to avoid future legal problems in the permitting process.
In addition, emails from staff in FWS’ migratory birds protection office now apparently include a “boilerplate notice” that says the office “is unable to communicate with wind facilities regarding permitting at this time.”
Usually, renewables developers just get a simple go-ahead from the government saying that they don’t have wetlands or bird nests present and that therefore work can begin. Or maybe they do have one of those features at the construction site, so guardrails need to be put in place. Either way, this is supposed to be routine stuff unless a project is controversial, like the Keystone XL pipeline or Pebble Mine in Alaska.
It’s not immediately clear how solar and wind developers move forward in this situation if they are building in areas where wetlands or protected species even may be present. Violating wetlands and species protection laws carries legal penalties, and with the Trump administration arranging itself in such an openly hostile fashion against renewables developers, it’s probably not a good idea to break those laws.
Unfortunately for industry, the ACP memo describes a confusing state of affairs. “Written guidance from ACOE [Army Corps of Engineers] to industry has been expected but members have not seen it yet. Actions and communications from regional districts appear to be guided by internal ACOE emails,” the document states. Staffing within the Army Corps is “uncertain” due to questions over whether money from the Inflation Reduction Act — which provided funds to hire permitting personnel — will be “available to continue funding staff positions in some offices,” or whether permitting staff will take the administration’s voluntary resignation offer, which the memo claims “is apparently still actively being pushed on staff with emails.”
Meanwhile, at Fish and Wildlife, ACP’s members “have indicated some staff are still taking phone calls and responding to emails to answer questions, while others are not.”
As with a lot happening in the early era of Trump 2.0, much of the permitting mess is still unclear. We don’t know who is behind these difficulties because there have been no public policy or guidance changes from the Army Corps or Fish and Wildlife. Trump did order agencies to stop issuing “new or renewed approvals” for wind projects shortly after entering office, but the ACP memo describes something altogether different: agency staff potentially refusing to declare whether an approval is even necessary to build on state or private lands.
Another example of how confusing this is? Interior had issued a 60-day pause on final decisions for solar projects, but the Army Corps isn’t under Interior’s control — it’s part of the Defense Department.
It’s also unclear if the contagion of permitting confusion has spread to other agencies, such as the Federal Aviation Administration, which we previously reported must regularly weigh in on wind turbines for aviation safety purposes. As I reported before Inauguration Day, anti-wind activists urged the Trump administration to essentially weaponize environmental laws against wind energy projects.
ACP didn’t respond to a request for comment. I also reached out to the Army Corps of Engineers and Fish and Wildlife Service, so I’ll let you know if and when I hear back from any of them.
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A chat with Colette Lamontagne, senior director for electric power at Ceres.
This week’s conversation is with Colette Lamontagne, senior director for electric power at the sustainability finance advocacy group Ceres. Her team just released a shareholder engagement guide for the utility space around data center development. I’ve been wondering when the ESG crowd would enter into the AI infrastructure fray, so I asked if I could chat with Colette about what the guide could teach my lovely readers and whether the data center backlash portends a new wave of boardroom fights between electric companies and institutional investors.
Our conversation was lightly edited for clarity.
What is the big message of this guide? If you were to talk about this over a coffee, what would be the topline takeaway?
These data centers are coming, but they can be done right. They don’t have to be done in a way that negatively impacts energy, water, and communities, and we need to slow down just enough to be able to do it right.
It’s not a guide about what data centers should do — it's a guide on the risks to the electric power sector. The biggest risk is the magnitude of power needed and the timing — how quickly it’s needed. Because of that, the traditional process for electric utilities can’t keep pace. It’s all regulated. There’s a lot of steps they have to go through to build new transmission infrastructure and new generation. If the grid connected companies can’t keep up the pace, data centers will just build their own generation. And the biggest problem with that? You have all these resources not shared by the users.
Do you think data centers are going to create a new wave of ESG-based investor advocacy?
I haven’t thought about it as a new age for ESG, but that’s a good point. We are moving beyond asking companies about targets and to create transition plans. Now we’re looking at how to accelerate solutions for climate impacts. I do think there’s a new age related to that.
When it comes to data centers, the questions aren't about utilities and their targets, but instead how they’ll meet this need so they don’t go back to old coal plants or [build] new [behind the meter] plants not used by the grid.
Should we anticipate some kind of new shareholder advocacy wave around how integrated utilities and power companies address or mitigate the impacts of the data center boom on meeting their resource plans, especially decisions made as a result of shareholder advocacy on climate?
If a data center comes to a utility and says they need 100 megawatts of power and the utility chooses to serve that with coal or gas instead of new renewables, it will impact their clean energy goals. If they say they signed a power purchase agreement and give all these renewable resources to a data center, that’s not new — you’re still impacting your clean energy goals because then you’re taking the renewables away from other customers. You have to build something else for those other customers. What are you building instead?
How they think about their long-term resource plans is really important. These generation sources will be around for a very long time. In most cases, renewable energy is cheaper to build. Gas plants require a four- or five-year wait for turbines. So not only is it better for the environment but better for business to get these renewables built.
I’ve written a lot about data center water use. The guide goes into the energy sector’s water use impacts from this increased power demand from data centers; specifically, it says investors should consider asking utilities to conduct new comprehensive water risk assessments around it. Can you help my readers and I better understand what this kind of assessment is and why companies should consider doing this?
Different types of electric generation facilities use different amounts of water. Some of it is withdrawn and put back. Some of it is withdrawn and consumed. Those matter. In cases when water is drawn and put back, the temperature goes up — that’s impacting the environment.
It’s an interesting dichotomy. The new technologies that use air cooling use less water, but they use more energy. Then you have to think about what electricity you’re using and how much water that electricity is using. It’s the life-cycle impacts.
Is there any kind of risk for investors or energy companies associated with the data center sector, given its political challenges?
Well, utilities usually get the short end of the straw. They always get blamed for everything. I say that with a laugh because I used to work for a utility.
Some of these companies have an obligation to serve. If someone comes to them and says they need power, they are required to provide it. However, they can protect themselves and other ratepayers. If the utility builds a whole generation plant and all this transmission infrastructure to serve one data center, and then the data center gets canceled, yeah that’s a risk — not to the bottom line of the utility but to their reputation.
Plus more on this week’s biggest development fights.
1. Washtenaw County, Michigan — The Mitten State made itself the center of the data center backlash this week, as multiple AI skeptics won key Democratic congressional primaries. Yet the most significant election result wasn’t a primary vote, but rather a quiet referendum in a small town outside Ann Arbor.
2. Travis County, Texas — I’ve been getting a lot of texts from sources about Texas Governor Greg Abbott issuing a stop to data center permitting. Let’s get into what really is happening here.
3. Jefferson County, Missouri — Data center opposition can win a Republican political primary, too, as demonstrated this week in this rural pocket of the Show-Me State.
4. Santa Clara County, California — We conclude this week’s Hotspots with a warning about the dire political straits of battery storage technology.
The agency is reportedly considering a land swap that would allow AI infrastructure in one of northern Virginia’s largest green spaces.
A national park site and Civil War conflict area in Virginia is now a battleground in the fight over data center development on federal real estate — and Congress is starting to get involved.
On July 23, the Prince William Times reported that Trump’s National Park Service is “considering a land swap” to allow “at least four data centers” on land within the boundaries of Prince William Forest Park in northern Virginia, one of the largest green spaces in the Washington D.C. metro area and a flashpoint during the Civil War. Since then, my colleagues and I have confirmed based on interviews with sources familiar with the plan, public lobbying disclosures, and previously unreported correspondence from Congress to the Park Service that, indeed, there has been a concerted behind-the-scenes effort to make this swap happen, going back more than a year. Many of those concerned about the idea of this exchange told me they’ve been unable to get clear answers from the Park Service on the likelihood of the swap.
Here’s what we do know: A data center development company, Highland Digital, under an LLC registered by their legal counsel, has sought permission from Prince William County to build a large tech infrastructure complex next to the park, at a site other companies have sought to rezone for that purpose since at least 2022. Though the land is within the park’s boundaries, it is not actually owned by the park; it was held by a private entity before the site was established, enabling it to be used for development through a quirk in public land use law colloquially known as “inholding.”
Meanwhile, the data center backlash has made siting new projects in Northern Virginia increasingly difficult. In Prince William County specifically, supervisors rejected a large data center project near Dulles Airport last month. The sort of land Highland Digital has access to would be challenging to develop in this political environment, given that county planning office staff said it also included wetlands and streams that made permitting difficult.
So as Highland Digital struggled to get permission, it came up with a Plan B, according to two local park conservation advocates familiar with the project’s progress: It could swap some of the land in the park with other parcels close by owned by the Park Service without as much ecological sensitivity. The company retained a lobbyist, Jeff Small, who was a senior adviser to the Interior Department under the first Trump administration and last year publicly boasted of close ties to the White House (which distanced itself from him in response). Small lobbied the National Park Service and Interior Department for a land exchange on Highland Digital’s behalf starting in May 2025 through the first quarter of this year, according to federal lobbying disclosures.
Around this time, Ashley Studholme, executive director of the Prince William Conservation Alliance, first learned about the land swap proposal. Studholme told me Highland Digital CEO Peter Batten proposed the idea to the park’s superintendent George Liffert in a meeting the three had that month with Small in attendance. Highland Digital provided Studholme and Liffert with a map she shared with me outlining different parcels that would be involved. Studholme said that afterwards, nearly identical parcel delineations were then added to an official National Park Service GIS map online. This meeting and map change assertion were first reported by the Prince William Times.
Kyle Hart, a senior program manager for the National Parks Conservation Association, told me his organization has had “loose discussions” with Park Service staff about the land swap, which he described as “a newer thing” that “we know has been proposed.”
In response to my request for comment, NPS sent the following statement attributed to an unnamed spokesperson: “The National Park Service preserves the historic, cultural and natural integrity of national parks, including Prince William Forest Park. The NPS does not regulate private land use outside park boundaries or comment on speculative uses.”
On paper, Hart told me, the swap has some upsides for NPS. The Park Service would get more land in the deal than Highland Digital would acquire. It could also permanently protect sensitive resources. But the cumulative impact of the exchange, he said, is unambiguously in Highland Digital’s favor.
“The developer comes out ahead,” he told me. “You combine that with another 100 or so acres [they hold] that is direct road frontage, and you have land primed for development without any of the hiccups of pesky streams and so forth. And they’d be doing this to expedite a data center within their borders directly adjacent to the land they’re protecting.”
In mid-July, before the Prince William Times story published, staff for Representative Eugene Vindman — the Democratic congressman whose district includes the park — contacted the Park Service requesting “reports of a potential exchange or transfer of land within Prince William Forest Park. The inquiry asked for information on deed ownership as well as any legal authority for the Park Service to exchange land with a private corporation for development without congressional approval.
Vindman’s staff provided their request to me this week, informing me they never heard back.
“I’m very concerned about the proposed data center development in and near Prince William Forest Park,” Vindman said in a statement his office provided. “I have been clear that data centers should not be built near parks, schools, or residential communities, and I’ll continue to fight for our community on this issue.”
Very little about Highland Digital or its data center plans is available online, while Data Center Dynamics, a trade publication, has reported that details about the data center are “sparse.” A public meeting to discuss the project planned for the parcel the company currently owns was scheduled for May, but was then canceled after the developer rescinded a permitting application with Prince William County without a stated reason.
Highland Digital did not respond to requests for comment. Neither did representatives from Jeff Small’s firm, 76 Group, who was registered to lobby for the developer on behalf of EIS Solutions, the firm’s name before it rebranded in 2021. Small’s contact information is not public and I was unable to reach him for this story.
With reporting by Matthew Zeitlin.