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The tension between the two GOP energy philosophies — one admitting renewables, the other firmly rejecting — could tank a permitting reform deal.

The fate of a House GOP permitting deal stands on a knife’s edge.
During a dramatic vote on the House floor Tuesday, far-right Republicans and opponents of the offshore wind industry joined with Democrats in a nearly-successful attempt to defeat a procedural vote on the SPEED Act, a bill to streamline implementation of the National Environmental Policy Act.
Speaking with reporters off the House floor, GOP lawmakers said that the bill — which has the backing of both the oil and gas sector and some large trade groups that represent renewables companies — faced opposition from a handful of Republicans over language that would block the federal government from rescinding previously-issued permits for energy projects. The tactic is one Trump has used repeatedly to stymie offshore wind projects. Republican hardliners feared that a future version of the deal would take that language further, restricting the president’s power to stall solar and wind permit applications through extralegal bureaucratic delays.
The vote to consider SPEED ultimately passed with a margin of 215 to 209 votes, with two Republicans — Representatives Anna Paulina Luna and Christopher Smith — voting no. Though the bill is alive for now, the outcome casts a pall over the prospects for any permitting deal this Congress because, as Heatmap’s reporting has made clear, there is little shot of a grand deal on NEPA reform without exactly the sort of executive power restrictions Republican objectors feared.
That the bill nearly came up short also illustrates a shift in the GOP’s thinking on energy policy that has gone largely unnoticed. Vestiges of the party remain committed to the philosophy of “all of the above,” but the new generation of lawmakers is more likely to be anti-renewables at all costs. Combined with today’s hyper-partisan environment and narrow majorities in both chambers, that tension makes legislating on energy almost impossible.
Republicans used to approach energy policy in a laissez faire, let-a-thousand-flowers bloom fashion. This fuel-type agnosticism characterized Republicans’ approach to energy policy under the first Trump administration, as well as during the Biden era. Former House Speaker Kevin McCarthy repeated the “all of the above” mantra to nudge his party closer to anything resembling a climate policy, and subscribed to the idea that any permitting deal would have to benefit all types of energy projects.
The SPEED Act closely resembles a McCarthy-era approach to energy policy: just make everything go faster.
It is true that the bill would bind the hands of the executive in some ways, requiring them to get consent from the project developer in order to voluntarily vacate a previously-issued NEPA approval. If someone sued the government because they believed a NEPA approval was invalid and got a federal court to agree, the judge overseeing the case would be barred from immediately vacating the approval or issuing an injunction on construction. This is a big reason why the oil and gas industry supports the bill, as it’s a way to shield the sector from environmentalists filing lawsuits against fossil-based extraction and fuel transportation projects (e.g. pipelines).
But there’s a small irony in the SPEED Act spinning out over offshore wind concerns, which is that if it were enacted today, not even its supporters think it would actually stop the administration from messing with wind projects. As pro-fossil pundit Alex Epstein noted on X, the bill would only limit the president’s authority to revoke approvals under NEPA. It would do nothing to erode presidential power under any other statute, including another one of the administration’s favorite tools against offshore wind, the Outer Continental Shelf Lands Act.
I spoke with two separate energy industry attorneys who confirmed this interpretation. “It would be welcome for whatever the next administration would look like,” Peter Whitfield, a partner at Sidley Austin who works on energy projects, told me of the SPEED Act. “It might not be helpful now.” The bill’s clean energy backers are looking at the legislation as a “long range” play, he said: “They’re not looking at year one, two, three — they’re looking at years eight and after. I think that’s why there is so much enthusiasm in the renewable energy space for reform.”
Another attorney, who requested anonymity because they did not have permission from their firm, confirmed that the bill would stop the Trump administration from exploiting NEPA in the future, but said that nothing in the legislation requires agencies to move forward on energy projects.
It’s that eight-years-from-now future that seems to have the anti-renewables conservative wing in Congress worried. The House is expected to vote on the SPEED Act as soon as tomorrow, but lawmakers will first consider amendments offered by the Republicans who nearly killed the bill, including one that would explicitly bar offshore wind projects from benefiting under any of its NEPA changes.
If those amendments fail, the odds of final House passage are uncertain, although some Democrats who voted against the procedural motion may wind up voting for the final bill. If they succeed and the bill moves to the Senate, Democrats aim to add new ideas on transmission and the renewables permitting freeze that may upset frazzled Republicans even more.
“We would expect that senators wouldn’t endorse a House product,” Frank Macchiarola, chief advocacy officer for American Clean Power, told me in an interview last week. Macchiarola said the language in the House bill “goes a long way towards addressing the problem” of Trump’s war on renewables permits, but that it is “not a perfect product,” though he declined to speak on the record about what would get it closer to ideal. If I had to guess, I’d say that senators will try to provide new avenues for companies to compel an end to the review process, whether through legal challenges or other means of protest.
In other words, grab your popcorn — more drama is coming.
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A third judge rejected a stop work order, allowing the Coastal Virginia offshore wind project to proceed.
Offshore wind developers are now three for three in legal battles against Trump’s stop work orders now that Dominion Energy has defeated the administration in federal court.
District Judge Jamar Walker issued a preliminary injunction Friday blocking the stop work order on Dominion’s Coastal Virginia offshore wind project after the energy company argued it was issued arbitrarily and without proper basis. Dominion received amicus briefs supporting its case from unlikely allies, including from representatives of PJM Interconnection and David Belote, a former top Pentagon official who oversaw a military clearinghouse for offshore wind approval. This comes after Trump’s Department of Justice lost similar cases challenging the stop work orders against Orsted’s Revolution Wind off the coast of New England and Equinor’s Empire Wind off New York’s shoreline.
As for what comes next in the offshore wind legal saga, I see three potential flashpoints:
It’s important to remember the stakes of these cases. Orsted and Equinor have both said that even a week or two more of delays on one of these projects could jeopardize their projects and lead to cancellation due to narrow timelines for specialized ships, and Dominion stated in the challenge to its stop work order that halting construction may cost the company billions.
It’s aware of the problem. That doesn’t make it easier to solve.
The data center backlash has metastasized into a full-blown PR crisis, one the tech sector is trying to get out in front of. But it is unclear whether companies are responding effectively enough to avoid a cascading series of local bans and restrictions nationwide.
Our numbers don’t lie: At least 25 data center projects were canceled last year, and nearly 100 projects faced at least some form of opposition, according to Heatmap Pro data. We’ve also recorded more than 60 towns, cities and counties that have enacted some form of moratorium or restrictive ordinance against data center development. We expect these numbers to rise throughout the year, and it won’t be long before the data on data center opposition is rivaling the figures on total wind or solar projects fought in the United States.
I spent this week reviewing the primary motivations for conflict in these numerous data center fights and speaking with representatives of the data center sector and relevant connected enterprises, like electrical manufacturing. I am now convinced that the industry knows it has a profound challenge on its hands. Folks are doing a lot to address it, from good-neighbor promises to lobbying efforts at the state and federal level. But much more work will need to be done to avoid repeating mistakes that have bedeviled other industries that face similar land use backlash cycles, such as fossil fuel extraction, mining, and renewable energy infrastructure development.
Two primary issues undergird the data center mega-backlash we’re seeing today: energy use fears and water consumption confusion.
Starting with energy, it’s important to say that data center development currently correlates with higher electricity rates in areas where projects are being built, but the industry challenges the presumption that it is solely responsible for that phenomenon. In the eyes of opponents, utilities are scrambling to construct new power supplies to meet projected increases in energy demand, and this in turn is sending bills higher.
That’s because, as I’ve previously explained, data centers are getting power in two ways: off the existing regional electric grid or from on-site generation, either from larger new facilities (like new gas plants or solar farms) or diesel generators for baseload, backup purposes. But building new power infrastructure on site takes time, and speed is the name of the game right now in the AI race, so many simply attach to the existing grid.
Areas with rising electricity bills are more likely to ban or restrict data center development. Let’s just take one example: Aurora, Illinois, a suburb of Chicago and the second most-populous city in the state. Aurora instituted a 180-day moratorium on data center development last fall after receiving numerous complaints about data centers from residents, including a litany related to electricity bills. More than 1.5 gigawatts of data center capacity already operate in the surrounding Kane County, where residential electricity rates are at a three-year high and expected to increase over the near term – contributing to a high risk of opposition against new projects.
The second trouble spot is water, which data centers need to cool down their servers. Project developers have face a huge hurdle in the form of viral stories of households near data centers who suddenly lack a drop to drink. Prominent examples activists bring up include this tale of a family living next to a Meta facility in Newton County, Georgia, and this narrative of people living around an Amazon Web Services center in St. Joseph County, Indiana. Unsurprisingly, the St. Joseph County Council rejected a new data center in response to, among other things, very vocal water concerns. (It’s worth noting that the actual harm caused to water systems by data centers is at times both over- and under-stated, depending on the facility and location.)
“I think it’s very important for the industry as a whole to be honest that living next to [a data center] is not an ideal situation,” said Caleb Max, CEO of the National Artificial Intelligence Association, a new D.C.-based trade group launched last year that represents Oracle and myriad AI companies.
Polling shows that data centers are less popular than the use of artificial intelligence overall, Max told me, so more needs to be done to communicate the benefits that come from their development – including empowering AI. “The best thing the industry could start to do is, for the people in these zip codes with the data centers, those people need to more tangibly feel the benefits of it.”
Many in the data center development space are responding quickly to these concerns. Companies are clearly trying to get out ahead on energy, with the biggest example arriving this week from Microsoft, which pledged to pay more for the electricity it uses to power its data centers. “It’s about balancing that demand and market with these concerns. That’s why you're seeing the industry lean in on these issues and more proactively communicating with communities,” said Dan Diorio, state policy director for the Data Center Coalition.
There’s also an effort underway to develop national guidance for data centers led by the National Electrical Manufacturers Association, the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, and the Pacific Northwest National Laboratory, expected to surface publicly by this summer. Some of the guidance has already been published, such as this document on energy storage best practices, which is intended to help data centers know how to properly use solutions that can avoid diesel generators, an environmental concern in communities. But the guidance will ultimately include discussions of cooling, too, which can be a water-intensive practice.
“It’s a great example of an instance where industry is coming together and realizing there’s a need for guidance. There’s a very rapidly developing sector here that uses electricity in a fundamentally different way, that’s almost unprecedented,” Patrick Hughes, senior vice president of strategy, technical, and industry affairs for NEMA, told me in an interview Monday.
Personally, I’m unsure whether these voluntary efforts will be enough to assuage the concerns of local officials. It certainly isn’t convincing folks like Jon Green, a member of the Board of Supervisors in Johnson County, Iowa. Johnson County is a populous area, home to the University of Iowa campus, and Green told me that to date it hasn’t really gotten any interest from data center developers. But that didn’t stop the county from instituting a one-year moratorium in 2025 to block projects and give time for them to develop regulations.
I asked Green if there’s a form of responsible data center development. “I don’t know if there is, at least where they’re going to be economically feasible,” he told me. “If we say they’ve got to erect 40 wind turbines and 160 acres of solar in order to power a data center, I don’t know if when they do their cost analysis that it’ll pencil out.”
Plus a storage success near Springfield, Massachusetts, and more of the week’s biggest renewables fights.
1. Sacramento County, California – A large solar farm might go belly-up thanks to a fickle utility and fears of damage to old growth trees.
2. Hampden County, Massachusetts – The small Commonwealth city of Agawam, just outside of Springfield, is the latest site of a Massachusetts uproar over battery storage…
3. Washtenaw County, Michigan – The city of Saline southwest of Detroit is now banning data centers for at least a year – and also drafting regulations around renewable energy.
4. Dane County, Wisconsin – Another city with a fresh data center moratorium this week: Madison, home of the Wisconsin Badgers.
5. Hood County, Texas – Last but not least, I bring you one final stop on the apparent data center damnation tour: Hood County, south of the Texas city of Fort Worth.