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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?

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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“It is important that non-viable projects be terminated or withdrawn so that the queue and any required restudies be updated as quickly as possible,” stated the filing, which was first reported by Utility Dive earlier this week.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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Spotlight

Trump Keeps Wind Farms Waiting Despite Court Ruling

The administration told a federal court that it has a “new analytical methodology,” hence the continued delays.

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Trump measuring wind turbines.
Heatmap Illustration/Getty Images

A federal judge ruled in early August that the Trump administration’s freeze on vertical height clearances for wind turbines was likely illegal. More than a month later nearly all of the wind energy projects remain on pause, as federal officials add new red tape that industry representatives say runs afoul of the court’s edict.

Let’s catch-up quickly on the American wind sector’s existential dilemma: the federal government has control over airspace higher than 200 feet from the ground and wind farm turbines essentially always enter that sphere of control. For at least a year and a half, the Trump administration through the Department of Defense and the Federal Aviation Administration has slowly gummed up what industry and former government officials have said was once a rote, benign bureaucratic process for ensuring turbine rotation didn’t interfere with flight patterns or radar at nearby airports.

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Q&A

Why a Climate Law Expert Sees ‘Small Glimmers of Hope’

Talking about the data center backlash, the midterm elections, and the future of renewables with Columbia Law School’s Romany Webb.

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Romany Webb.
Heatmap Illustration/Getty Images

This week’s conversation is a quick catch-up with our friends at Columbia Law School’s Sabin Center for Climate Change Law. I hopped on the phone with the center’s deputy director Romany Webb to chat about recent updates they published to anti-renewables opposition analysis. I wanted to dig into their research beyond the toplines — what should people care about in the coming election? How have data centers come up in their research? Or the repeal of the Inflation Reduction Act?

The following conversation was lightly edited for clarity.

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Hotspots

All the Data Center News That’s Fit to Print

A developer sues an Arkansas paper, plus more of the week’s biggest development fights.

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The United States.
Heatmap Illustration/Getty Images

1. Pulaski County, Arkansas – A major utility sued the biggest newspaper in Arkansas over reporting on a data center energy deal. It’s a crucial case to follow.

  • The lawsuit Entergy filed last week against the Arkansas Democrat-Gazette centers on whether the newspaper was legally able to publish about an Entergy deal with Google around payments for a large solar farm to power a data center. It claims the information reported was a trade secret accidentally released by the state public services commission.
  • In a statement to a local ABC station, the utility claimed Google’s “electricity contract may be confidential to newspapers,” and that the publication also erroneously reported on the solar farm financing. Entergy is seeking a temporary restraining order blocking the publication from reporting any more information in its possession that would qualify as theirs or Google’s trade secrets, and claims they believe more information is in the publication’s possession that may be reported in the future, according to federal court filings.
  • So far, the utility has been unable to win the stoppage and U.S. District Judge Lee Rudofsky rejected their request on Wednesday. The case is proceeding and I will be checking in regularly for you on this one.
  • Why is this case so important? This is easily the most aggressive communications response to public reporting on a previously-unknown deal related to a data center. At a time when non-disclosure agreements are a profound liability for the sector, I am surprised to see a utility go as far as a federal court challenge.

2. Lackawanna County, Pennsylvania – Speaking of hardcore legal strategies, have you ever heard of a data center developer asking every local official to recuse themselves?

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