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Spotlight

Trump’s Wind Order Could Hit ‘More Than Half’ of New Projects

The American wind industry faces a potentially existential threat.

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Trump and wind turbines.
Heatmap Illustration/Getty Images

President Trump’s executive order halting permits and leases for wind projects is starting to look like a potential existential threat to the industry’s future. Just don’t expect everyone to say it out loud.

On Monday, Trump issued an order pausing new federal approvals for wind projects, pending a “comprehensive assessment” of permitting practices, while opening the door to a review of existing leases and previously-issued permits subject to litigation. In the days following the order, lawyers, industry trade representatives, and professionals who work for renewable energy developers explained to me how this could impact essentially any wind project, even ones not sited on federal lands. Wind projects are just so large and impactful that it’s hard to avoid a federal permit.

Jason Grumet, CEO of the American Clean Power Association, told me Wednesday afternoon that a pause on federal permits would impact “probably more than half” of all wind projects under development in the U.S.

“If in fact the federal government stops issuing approvals, a significant amount of the pipeline would be interrupted,” Grumet said.

Given the high costs associated with building a wind project, and the likelihood of tariffs making that situation worse, the uncertainty produced by a potential halt to permits may also be enough to cause developers to pull the plug on projects – because even if the order itself winds up tossed out in court, that could take years.

As one renewable energy professional told me anonymously, for fear of reprisal, “If we say, well we probably have the right to do this but we have to sue the government to enforce that right, it’s probably only going to get the [project] deal done 40% of the time now.” He concluded: “It’s definitely going to chill investment.”

It’s early days, and Grumet of ACP says he’s holding out hope that the new president can be walked back from the brink. He’s focusing on the possibility that people in the administration including Trump’s picks to run the Interior and Energy Departments – Doug Burgum and Chris Wright – are willing to listen and potentially help walk back a complete and total permitting shutdown.

When asked however if suing the administration may be required, Grumet said it’s a hypothetical that could come true in the worst case scenarios.

“We’re taking it seriously. But the idea that you would have a pro-business administration trying to stop private companies from taking economically appropriate action on private land is just so out of step with the role of government that we’re expecting they’re going to clarify their intent.”

Fear of a federal nexus

Trump’s executive order is so far-reaching because wind projects regularly need federal permits and other authorizations, even if they’re sited on private or state lands.

A commonly cited federal nexus is endangered species. Opponents of wind energy have long criticized turbines for being a potential threat to birds, but it is the case that many wind projects are collocated within or near areas for rare bird migration. Cultural heritage impacts can often also be a difficulty.

One major threat I’ve been hearing about from many in the industry flew out of left field: the Federal Aviation Administration often must clear wind projects for construction. Matt Eisenson, an expert in renewables permitting at the Columbia University Sabin Center for Climate Change Law, told me FAA approvals are required “very frequently” for wind projects because any land structure more than 200 feet tall must be approved to not be a hazard for commercial planes. And while the order didn’t cite the FAA specifically, it instructed all “relevant agencies” to wind permitting stop giving approvals related to projects, opening the door to aviation-related clearances idling on a procedural tarmac.

“It’s hard to avoid it if you’ve got anything sizable,” an attorney who works in the renewable energy industry told me, adding the total scope of impact is still unknown: “There’s nobody you could talk to who could have nearly all the answers [about Trump’s order]. And that includes developers and companies, because they don’t know either.” (It’s worth noting no industry attorney would be willing to go on the record with me because of ongoing impacts to clients.)

Then there’s the existing leases and permits. It’s easy to assume that a permit issued is a permit safe, and the Biden administration quickly rushed approvals for many wind projects, onshore and offshore, in the final days before Trump’s inauguration.

But the order left open a process to challenge existing approvals through litigation. In the offshore wind space, we’re already seeing public requests for Trump to review the leases for the MarWin project off the coast of Maryland and Delaware, and Atlantic Shores off the coast of New Jersey.

Paul Kamenar, a lawyer involved in a suit challenging Dominion Energy’s Coastal Virginia offshore wind project, says we can expect the same in his case. Kamenar is with the National Legal and Policy Center, which joined with the Heartland Institute and anti-wind group CFACT to sue the government for approving Coastal Virginia, claiming it did not consider the cumulative impacts of building the project on endangered whales.

Kamenar told me he believes the order shows Trump’s team is sympathetic to the arguments raised in the case, and he’s planning to file a request for the federal government to reconsider its permits and leasing for the project as soon as next week. Kamenar said the order provides avenues for similar challenges to many other projects.

“I think this affects all the onshore and offshore wind projects,” Kamenar said. “Some more than others. But if I were the energy company, I would be loath to continue going forward until I got clarification.”

Eisenson at Columbia told me the executive order “opened the door” to a massive range of new potential hurdles for wind development. He sees legal vulnerabilities in the executive order because there’s a history in recent case law surrounding Biden’s pauses on federal oil and gas leasing. But that’s cold comfort for an industry with such high capital costs that it describes low interest rates as its “fuel.”

“This could have a major chilling impact,” Eisenson said. “Even if the EO is unlawful, it could take years in court to invalidate an unlawful decision.”

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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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