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Rockland Solar accuses East Fairfield, Pennsylvania, of “municipal extortion.”
A solar developer is accusing a Pennsylvania town of requesting a $150 million bribe to get its permits, calling it “municipal extortion.”
Rockland Solar – a subsidiary of utility-scale solar developer Birch Creek – filed a federal lawsuit last week accusing officials in the northern Pennsylvania township of East Fairfield of intentionally moving the goalposts for getting permits to build over the span of multiple years. Rockland’s attorneys in the litigation describe the four officials controlling the township’s board of supervisors as engaging in “corrupt” behavior to deny the project, “ultimately culminating in the solicitation of a bride of more than $150,000,000” in exchange for approval of its application to develop land in the township.
The federal complaint scans as a horror story in solar development. Applications for Rockland Solar’s project were first filed in 2021 and granted approval from the township’s zoning officials in 2022, per the company’s legal complaint. But things seem to have gone south when Rockland Solar sought approval of its first land use application from the town, as replies to emails from town officials became scattershot and sporadic.
In August 2024, per the lawsuit, East Fairfield officials scheduled a crucial public meeting to decide whether to approve the application without notifying Rockland Solar itself, which the company claims was an intentional move “in corrupt and underhanded bad faith” meant “to consider, and then deny” the application “without providing due process.” According to the lawsuit, one of the reasons for the denial was that the project was located within the township – despite it already being approved by zoning officials.
Rockland Solar then took the town to Pennsylvania claims court over the decision because it was reached after a statutory deadline, according to the lawsuit. Amidst this legal fight, the company submitted a second application to build the project – making what the company says were many size and setback changes intended to address the reasons for the apparent denial. East Fairfield ultimately denied the project again. But the developer kept trying, negotiating in apparent good faith with the town’s lawyers to try and reach an agreement.
Then came the alleged request for a bribe. Per a letter cited in the legal complaint, officials asked the developer to pay the town annual payments every year the project was operating – starting at $5,000 and then increasing 25% “every year for the life of the facility,” and that land owners bordering the property would also need to be “compensated 10% of their current property value.” Rockland Solar’s attorneys calculated the annual payments alone to total at least $3 million in the thirtieth year of the project and $30 million a decade later.
Altogether, Rockland Solar’s attorneys landed on the whopping $150 million figure, stipulating that this figure doesn’t include the payments to neighboring property owners. The company argues that this “solicitation of money by a township commissioner to a developer” in exchange for “favorable treatment of a land use application” violated the state bribery statute.
I’ve seen a lot of conflict writing The Fight – including lots of lawsuits filed by developers and residents alike – but I’d never seen an escalation this profound. Normally, suing the town you’re building a project in is a bad idea because it can spoil the well of public trust. I can’t help but think this maneuver was a last resort for Rockland Solar.
It’s also quite rare to get an inside look at the negotiations between a developer and a town. We’re used to seeing community benefit agreements and compacts come and go and I’ve told you how those deals have mixed results. Rockland Solar is now a case study in perhaps one of the worst ways those talks can end up.
I reached out to Rockland Solar’s attorneys, as well as Birch Creek, but failed to hear back. I also tried to reach officials in East Fairfield to hear their take on these extraordinary claims, but no dice. Here’s hoping that writing this leads to them reaching out as well, because this is fascinating and I want to learn more for all of you!
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A conversation with Mike Hall of Anza.
This week’s conversation is with Mike Hall, CEO of the solar and battery storage data company Anza. I rang him because, in my book, the more insights into the ways renewables companies are responding to the war on the Inflation Reduction Act, the better.
The following chat was lightly edited for clarity. Let’s jump in!
How much do we know about developers’ reactions to the anti-IRA bill that was passed out of the House last week?
So it’s only been a few days. What I can tell you is there’s a lot of surprise about what came out of the House. Industries mobilized in trying to improve the bill from here and I think a lot of the industry is hopeful because, for many reasons, the bill doesn’t seem to make sense for the country. Not just the renewable energy industry. There’s hope that the voices in Congress — House members and senators — who already understand the impact of this on the economy will in the coming weeks understand how bad this is.
I spoke to a tax attorney last week that her clients had been preparing for a worst case scenario like this and preparing contingency plans of some kind. Have you seen anything so far to indicate people have been preparing for a worst case scenario?
Yeah. There’s a subset of the market that has prepared and already executed plans.
In Q4 [of 2024] and Q1 [of this year] with a number of companies to procure material from projects in order to safe harbor those projects. What that means is, typically if you commence construction by a certain date, the date on which you commence construction is the date you lock in tax credit eligibility, and we worked with companies to help them meet that criteria. It hedged them on a number of fronts. I don’t think most of them thought we’d get what came out of the House but there were a lot of concerns about stepdowns for the credit.
After Trump was elected, there were also companies who wanted to hedge against tariffs so they bought equipment ahead of that, too. We were helping companies do deals the night before Liberation Day. There was a lot of activity.
We saw less after April 2nd because the trade landscape has been changing so quickly that it’s been hard for people to act but now we’re seeing people act again to try and hit that commencement milestone.
It’s not lost on me that there’s an irony here – the attempts to erode these credits might lead to a rush of projects moving faster, actually. Is that your sense?
There’s a slug of projects that would get accelerated and in fact just having this bill come out of the House is already going to accelerate a number of projects. But there’s limits to what you can do there. The bill also has a placed-in-service criteria and really problematic language with regard to the “foreign entity of concern” provisions.
Are you seeing any increase in opposition against solar projects? And is that the biggest hurdle you see to meeting that “placed-in-service” requirement?
What I have here is qualitative, not quantitative, but I was in the development business for 20 years, and what I have seen qualitatively is that it is increasingly harder to develop projects. Local opposition is one of the headwinds. Interconnection is another really big one and that’s the biggest concern I have with regards to the “placed-in-service” requirement. Most of these large projects, even if you overcome the NIMBY issues, and you get your permitting, and you do everything else you need to do, you get your permits and construction… In the end if you’re talking about projects at scale, there is a requirement that utilities do work. And there’s no requirement that utilities do that work on time [to meet that deadline]. This is a risk they need to manage.
And more of the week’s top news in renewable energy conflicts.
1. Columbia County, New York – A Hecate Energy solar project in upstate New York blessed by Governor Kathy Hochul is now getting local blowback.
2. Sussex County, Delaware – The battle between a Bethany Beach landowner and a major offshore wind project came to a head earlier this week after Delaware regulators decided to comply with a massive government records request.
3. Fayette County, Pennsylvania – A Bollinger Solar project in rural Pennsylvania that was approved last year now faces fresh local opposition.
4. Cleveland County, North Carolina – Brookcliff Solar has settled with a county that was legally challenging the developer over the validity of its permits, reaching what by all appearances is an amicable resolution.
5. Adams County, Illinois – The solar project in Quincy, Illinois, we told you about last week has been rejected by the city’s planning commission.
6. Pierce County, Wisconsin – AES’ Isabelle Creek solar project is facing new issues as the developer seeks to actually talk more to residents on the ground.
7. Austin County, Texas – We have a couple of fresh battery storage wars to report this week, including a danger alert in this rural Texas county west of Houston.
8. Esmeralda County, Nevada – The Trump administration this week approved the final proposed plan for NV Energy’s Greenlink North, a massive transmission line that will help the state expand its renewable energy capacity.
9. Merced County, California – The Moss Landing battery fire is having aftershocks in Merced County as residents seek to undo progress made on Longroad’s Zeta battery project south of Los Banos.
Anti-solar activists in agricultural areas get a powerful new ally.
The Trump administration is joining the war against solar projects on farmland, offering anti-solar activists on the ground a powerful ally against developers across the country.
In a report released last week, President Trump’s Agriculture Department took aim at solar and stated competition with “solar development on productive farmland” was creating a “considerable barrier” for farmers trying to acquire land. The USDA also stated it would disincentivize “the use of federal funding” for solar “through prioritization points and regulatory action,” which a spokesperson – Emily Cannon – later clarified in an email to me this week will include reconfiguring the agency’s Rural Energy for America loan and grant program. Cannon declined to give a time-table for the new regulation, stating that the agency “will have more information when the updates are ready to be published.”
“Farmland should be for agricultural production, not solar production,” Cannon wrote – a statement also made in the USDA report.
REAP is a program created in 2008 that exists to help fund renewable energy and sustainability projects at the level of individual farms and has been seen as a potential tool for not only building more solar but also more trust in agriculturally-focused communities. It’s without question that retooling REAP to actively disincentivize awardees from building solar on farmland could have a chilling effect, at least amongst those who receive money from the program or wish to in the future. This comes after Trump officials temporarily froze money promised to farmers, too.
As we’ve previously written in The Fight, agricultural interests can at times present as much a threat to the future of solar energy as any oil-funded dark money group, if not more so. Conflicts over solar production on farmland make up a large portion of the total projects I cover in The Fight every week, and it is one of the most frequently cited reasons for opposition against individual renewables projects. (Agricultural workforces are one of the most important signals for renewable energy opposition in Heatmap Pro’s modeling data as well.) I wrote shortly after Trump’s inauguration that I wondered when – not if – he would adopt this position.
It’s unclear what exactly led USDA to dive headlong into the “No Solar on Farmland” campaign, aside from its growing popularity in conservative political circles, but there is reason to believe farming interests may have played a role. USDA has stated the report was the product of discussions with farming groups and an industry roundtable. In addition, per lobbying disclosures, at least one agricultural group – the Pennsylvania Farm Bureau – advocated earlier this year for “congressional action and/or executive orders” to “balance renewable and conventional sources of energy” through “limit[ing] solar on productive farmland.” (The Pennsylvania Farm Bureau denied this in an email to me earlier this week.)
There’s also reason to believe some key stakeholders were caught off-guard or weren’t looped in on the matter.
American Farmland Trust has been trying to cultivate common ground between farmers, solar companies, and various agencies at all levels of government over the future of development. But when asked about this report, the nonprofit told me it couldn’t speak on the matter because it was still trying to suss out what was going on.
“AFT is meeting with the Trump administration to learn more about what they are planning in terms of policy and programs to implement this concept,” AFT media relations associate Michael Shulman told me.