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Spotlight

Anatomy of a Texas NIMBY

Inside a solar fight in the “cowboy capital of the world.”

Texas flag.
WikiCommons / Ricardo Gomez-Angel / Heatmap

An hour northwest of San Antonio, Texas, the small town of Bandera is home to fewer than 1,000 people. Complete with old-timey heritage buildings from the Old West, the town markets itself as a ranching tourism destination and the “cowboy capital of the world.”

And some residents really don’t want the solar farm coming to town: Pine Gate Renewables’ Rio Lago solar project, which would produce 132 megawatts of power. That’s enough renewable electricity to fuel almost 23,000 homes.

When the project first appeared on homeowners’ doorsteps, citizens concerned about building anything at industrial scale in their bucolic community rejected a local tax abatement and began speaking to local media. Eventually, roughly a dozen people living near the proposed Rio Lago site filed a lawsuit in state court seeking damages for alleged sediment runoff, along with a laundry list of other complaints. The state court judge was sympathetic to the individuals in Bandera, ordered construction to stop and sanctioned Pine Gate when residents said the company appeared to continue work on the project. The case is now pending in federal court.

Taken together this outcry, lawsuit, and all of the resulting local news coverage coverage add up to a crucial test: Can a handful of people block carbon-free power to so many homes?

In this circumstance, probably not. Last week, the federal judge now overseeing the case – Richard Farrer, who was appointed under Trump in 2017 – told the aggrieved homeowners and their lawyer that while the allegations of damages may still proceed to trial, there was “not sufficient evidence of imminent irreparable harm to support” an order to stop construction, according to a transcript of the hearing.

But still, this case still fascinates. That’s because despite Texas’ conservative political leaning the Lone Star state is a panacea for renewables development. It produces 16% of the nation’s total renewable energy but accounts for only 2.5% of the contested projects, restrictive ordinances, and moratoriums in Heatmap Pro’s database. Part of the reason Texas is so receptive is that energy production overall is pretty welcome – when you’re so used to oil rigs, a solar farm isn’t that big of a deal. For its part, Pine Gate clearly thinks it’s a great place to build as the company claims to have forty projects at various stages in the state.

The case of Bandera and the Rio Lago solar project ultimately illustrates NIMBYism – historically understood as more of an issue amongst liberals – can occur in even the most staunchly conservative parts of the country: the town is represented in Congress by Rep. Chip Roy, who has a 96% lifetime score from the Heritage Foundation’s political arm and a month ago called to fully defund the Energy Department’s Office of Energy Efficiency and Renewable Energy.

Ultimately, while renewable energy and decarbonization capital is pouring into culturally red areas across the U.S., this conflict demonstrates how a backlash can really rear its ugly head.

Jennifer Rosenblatt, a lawyer representing the homeowners opposed to the solar farm, told me her litigation isn’t “anti-solar” and “simply a construction issue.” But she acknowledged the residents are motivated by a simple and familiar adage: “Nobody wants it in their backyard.”

“All things being equal, they don’t want it there,” Rosenblatt said. “Everybody wants to say it’s a lawsuit about ‘not in my backyard,’ but in Texas you can’t control what somebody does on their property next door. There’s no lawsuit about that.”

We’ll keep you updated on the status of this lawsuit in future editions of The Fight.

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Q&A

How to Talk to Climate-Minded Investors About Data Centers

A chat with Colette Lamontagne, senior director for electric power at Ceres.

Colette Lamontagne.
Heatmap Illustration

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.

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Hotspots

The Most Important Data Center Vote You Haven’t Heard About

Plus more on this week’s biggest development fights.

The United States.
Heatmap Illustration/Getty Images

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.

  • On Tuesday, the town of Augusta voted by a nearly 9-1 margin to overturn a land use ordinance enacted by the township government the previous year allowing a data center on agricultural land. This means developer Thor Equities will either have to find a way around clear local rejection or abandon Augusta for its proposed data center.
  • Augusta sits on the border of Michigan’s 7th congressional district, where Sunrise Movement cofounder Will Lawrence pulled off a surprise upset against a moderate establishment-backed candidate. Lawrence’s victorious primary campaign was rooted almost entirely in advertising against data center development and tying his opposition to supporting the industry.
  • I believe the Augusta result proves the case made by Lawrence’s candidacy — voters will resoundingly back ways to fight data centers. A Lawrence campaign memo published by Politico after the primary makes the argument he will defeat incumbent Republican Tom Barrett almost entirely on this issue, too, calling it “the hyperscale elephant in the room.” The memo also claims there are “data center voters” who have “not traditionally been available to Democrats [but] have been highly motivated by hyperscale development in mid-Michigan.”
  • “Will’s strong stance on this issue and his consistency in showing up and standing alongside residents in data center fights expands his potential voter base in the general,” the memo states.

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.

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Spotlight

How the National Park Service Wound Up in a Data Center Deal

The agency is reportedly considering a land swap that would allow AI infrastructure in one of northern Virginia’s largest green spaces.

The Prince William Forest Park entrance.
Heatmap Illustration/Getty Images

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.

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