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Spotlight

Trump’s Permit Freeze Prompts Some Solar to Eye Exits

Is there going to be a flight out of Nevada?

Solar in Nevada.
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Donald Trump’s renewables permitting freeze is prompting solar companies to find an escape hatch from Nevada.

As I previously reported, the Interior Department has all but halted new approvals for solar and wind projects on federal lands. It was entirely unclear how that would affect transmission out west, including in the solar-friendly Nevada desert where major lines were in progress to help power both communities and a growing number of data centers. Shortly after the pause, I took notice of the fact that regulators quietly delayed the timetable by at least two weeks for a key line – the northern portion of NV Energy’s Greenlink project – that had been expected to connect to a litany of solar facilities. Interior told me it still planned to complete the project in September, but it also confirmed that projects specifically necessary for connecting solar onto the grid would face “enhanced” reviews.

Well, we have the latest update in this saga. It turns out NV Energy has actually been beseeching the Federal Energy Regulatory Commission to let solar projects previously planned for Greenlink bail from the interconnection queue without penalty. And the solar industry is now backing them up.

In a July 28 filing submitted after Interior began politically reviewing all renewables projects, NV Energy requested FERC provide a short-term penalty waiver to companies who may elect to leave the interconnection queue because their projects are no longer viable. Typically, companies are subject to financial penalties for withdrawals from the queue, a policy intended to keep developers from hogging a place in line with a risky project they might never build. Now, at least in the eyes of this key power company, it seems Trump’s pause has made that the case for far too many projects.

“It is important that non-viable projects be terminated or withdrawn so that the queue and any required restudies be updated as quickly as possible,” stated the filing, which was first reported by Utility Dive earlier this week. NV Energy also believes there is concern customers may seek to have their deals for power expected from these projects terminated under “force majeure" clauses, and so “the purpose of this waiver request is thus to both clear the queue to the extent possible and avoid unneeded disputes.”

On Monday, the Solar Energy Industries Association endorsed the request in a filing to the commission made in partnership with regional renewable trade group Interwest Energy Alliance. The support statement referenced both the recent de facto repeal of IRA credits as well as the permitting freeze, stating it now “appears that federal agency review staff are unsure how to proceed on solar projects.” This even includes projects on private lands, a concern first raised by Nevada Gov. Joe Lombardo, a Republican, after the permitting freeze came into effect.

The groups all but stated they anticipate companies will pull the plug on solar projects in Nevada, proclaiming that by granting the waiver, “it will encourage projects facing uncertainty due to recent legislation and federal action to exit the process sooner and without penalty, creating more certainty for the remaining projects.”

How this reads to me: Energy developers are understandably trying to figure out how to skate away from this increasingly risky situation as cleanly as they can. It’s anybody’s guess if FERC is willing to show lenience toward these developers.

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Q&A

How Building Transmission Could Lower Electricity Costs

Talking with National Grid’s Matthew Satterwhite about his new report with S&P Global.

The Q&A subject.
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This week’s conversation is with Matthew Satterwhite, head of U.S. policy for National Grid. This week National Grid released a report in collaboration with S&P Global I found noteworthy amidst the data center backlash, asserting that building new transmission lines can potentially reduce consumer costs. I reached out asking if we could chat about how this argument leans into the fight over hyperscale infrastructure. I found our conversation illuminating and educational.

The following Q&A was lightly edited for clarity.

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Hotspots

The Solar Farm-to-Data Center Switcheroo Hits a Snag

Plus more of the week’s biggest development fights.

The United States.
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1. Clark County, Nevada – The first data center approved on federal lands has hit a legal brick wall.

  • On Monday, the Townsite 2 solar farm-to-data center environmental review swap I’ve previously covered received a stay from the Interior Department’s board of appeals. David Gunter, a Biden appointee, ruled that the Center for Biological Diversity’s appeal of the permit flip was likely to succeed on the merits because a solar farm … is not a data center. Seems logical!
  • As I covered at the time, the Bureau of Land Management approved the environmental review swap claiming that a solar farm and a data center have essentially the same characteristics. It was a bold claim. Both the agency and Townsite said the characteristics would have substantially the same environmental impacts. Gunter shrugged off the claim idea, however, stating that statute requires projects to be both substantially similar and have equally similar impacts under the National Environmental Policy Act.
  • Crucially, Gunter also noted that the federal agency had never done an environmental review of any data centers under NEPA, so there’s not even a proper frame of reference. “BLM has not studied the Townsite data center project, or indeed any other data center project, in any environmental document,” he wrote.

2. Jackson County, Missouri – We have yet another high-profile case of a city councilor losing their job over voting for a data center, and this one’s a doozy.

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Spotlight

These 5 States Are Primed for a Data Center Pause

Where temporary moratoria could happen next.

A data center protest.
Heatmap Illustration/Getty Images

Brace yourself for more statewide data center moratoria.

So far there are only two full state-wide blocks on data center permits, in New York and Texas. At least fifteen states have moratorium legislation in the pipeline, but few if any of those bills stand a chance of becoming law in the short term. Here are five states, however, where a broad development pause may gain momentum in the next year or two — and all of them are crucial to watch this November.

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