The federal government has abruptly changed from being a strong ally to a fierce foe for states that are pursuing plans to construct additional wind and solar projects.
President Donald Trump’s whirlwind of executive orders, funding freezes, agency instructions, and vocal threats about clean energy have left state officials still trying to make sense of it. The teammate who gave the ball to them now appears to be attempting to block their shot.
The Brakeson offshore wind project, which depends on having access to federal seas, has drawn criticism from Trump. Permitting for certain renewable energy projects was blocked by him. Grants and loans for anything from home weatherization aid to rooftop solar systems have been halted by him. Additionally, he has cast doubt on the tax credits, which are arguably the biggest force behind the growth of sustainable energy.
Senator Bob Smith, a Democrat from New Jersey who serves as the chair of his state’s Senate Environment and Energy Committee, stated, “Yeah, we’re in trouble.” We’re going to suffer a serious whipsawing. Does Trump pose a threat to [New Jersey’s] electricity upgrades? Of course.
Trump has consistently referred to climate change as a hoax and has long opposed the growth of wind power. He has propagated myths that wind farms are more costly than alternative energy sources and cause cancer. His main focus has been on encouraging the production of fossil fuels. Former President Joe Biden, who made investments in renewable energy a defining issue, has drastically reversed his priorities with his orders.
Shortly after taking office on January 20, Trump declared at a rally for supporters, “We’re not going to do the wind thing.”
Many of Trump’s measures, according to officials who seek to reduce greenhouse gas emissions, are illegal. They anticipate that courts would reject his attempts to halt Congress-approved funding under Biden. However, they worry that the bigger risk is that renewable energy developers and investors would decide not to support projects as a result of the federal unpredictability.
Yes, we are in danger. We’re going to suffer a serious whipsawing.
Democratic state senator Bob Smith of New Jersey
According to Patrick Drupp, director of climate policy for the Sierra Club, a nationwide environmental advocacy organization, these activities are causing a great deal of disruption. Projects have a greater chance of disappearing the longer that continues. For several of these states, reaching [clean energy] goals may be significantly impacted if developers begin to withdraw from huge projects.
Blue state leaders declare their dedication to defeating Trump’s resistance. They are certain that it will be difficult to impede progress due to basic market dynamics. Wind and solar are two of the least expensive ways to generate electricity, yet the nation’s energy needs are rapidly expanding. Citing the employment and cash generated in their districts, over a dozen Republicans in the US House have called for the preservation of the clean energy tax credits.
Is what we’re hearing from D.C. confusing us? “Yes,” replied Senator Nick Frentz of Minnesota, a Democrat who wrote the state’s clean power law and serves as the chair of the Senate Energy, Utilities, Environment, and Climate Committee. However, I have a good feeling that renewable energy will continue to be a part of Minnesota’s energy mix due to its affordability and dependability.
The growth of offshore wind is the most obvious energy victim of Trump’s second term. When Biden was in the White House, the federal government strongly supported the efforts of many Atlantic states that rely heavily on offshore turbines to supply their electricity. However, a new landlord has taken over those federal waters.
Offshore wind leases, which are governed by the Bureau of Ocean Energy Management, were immediately suspended by Trump’s executive order. Additionally, the directive encourages assessments of projects that are subject to litigation by threatening to void current leases.
Timothy Fox, managing director of the independent research firm ClearView Energy Partners LLC, indicated in an email that the Trump Administration is not likely to fiercely defend offshore wind project permits obtained by the Biden Administration. Offshore wind opponents may be encouraged to submit more legal challenges as a result of the order.
A few previously authorized projects are still in progress, such as a wind farm being built in Virginia. But under Trump, the prospects for the several other unfinished projects are bleak. New Jersey, which has made offshore wind the cornerstone of its climate efforts, is already reducing public funding for projects.
Smith, the legislator from New Jersey, stated in an interview that it’s a HUGE barrier, and to put it in capital letters. It’s a serious issue that will likely affect both the short and long term.
Smith said state policymakers could need to consider other possibilities, such tiny modular nuclear reactors, to support their energy ambitions. Technology, however, is ten to fifteen years away, he said.
States can still work to upgrade their ports and transmission infrastructure, according to clean energy officials, to provide the offshore sector with a solid foundation for a relaunch under a future government. However, developers and governments might now be reluctant to put money into an industry that could be completely upended following any election.
According to Alissa Weinman, manager of the ocean program for the National Caucus of Environmental Legislators, a cooperative, nonpartisan forum for state legislators, it doesn’t appear promising. Large developers have shifted their focus to projects in other nations. Given that offshore wind [in the U.S.] is still in its infancy, that volatility is a serious worry.
Trump’s directive also prohibited turbine leases on federal lands, targeting onshore wind. Even though the great majority of onshore wind projects are located on private property, the government may nevertheless threaten those projects. For instance, the U.S. Army Corps of Engineers last week blocked outstanding licenses for 168 renewable energy projects on private lands in reaction to another Trump order centered on the development of fossil fuels.
The pause has subsequently been lifted, according to the government, but not for wind power projects, according to The New York Times.
Climate activists point out that Trump may also impede development by requiring permits from the Federal Aviation Administration for many wind projects.
No matter what kind of land the enterprise is on, it would be a problem if the administration were to simply reject all of those licenses, according to Ava Gallo, climate and energy program manager with the environmental legislative organization. Even if that is the worst-case scenario, it is quite plausible. If wind takes that big of a hit, it throws [states clean energy targets] into jeopardy.
Proponents of clean energy point out that wind energy is supported by both parties and that red states depend on it.
Wind energy is incredibly popular and a bipartisan thing that s brought huge amounts of money to a lot of red states, said Drupp, with the Sierra Club.
The top four states in the country for wind power generation are Texas, Iowa, Oklahoma, and Kansas. Texas Republican Gov. Greg Abbott hasboastedabout his state s nation-leading wind production, while alsoclaimingTexas needs to invest heavily in reliable gas-fired plants to stabilize the grid.
State leaders say it s still unclear whether Trump s aim is to uphold a blanket federal ban on permits for wind and solar projects. Such a move, they say, would be a clear overstep of his authority.
We re going to challenge every illegal and out-of-order action by this administration and continue to work towards our goals, said New York state Sen. Kevin Parker, a Democrat who chairs the Senate Committee on Energy and Telecommunications. We re trying to identify the things we can do despite federal interference, or things that we can do on our own.
Trump has also moved to freeze funding from the Inflation Reduction Act, the climate law passed under Biden that created major grants, loans and tax credits for clean energy.
The investments have been a significant catalyst for renewable development, and a large portion of the wind and solar projects in the works are supported by its programs. Industry leaders say the law is expected to produce550 gigawattsof wind, solar and battery storage by 2030 more than doubling the nation s current clean energy supply.
Climate advocates say Trump s moves overstep his authority and that only Congress can revoke funding it has previously approved. They note that the federal government has already issued contracts for many of the grants blocked by Trump.
Judges have issued orders halting Trump s attempt to pause federal spending; a federal judge ruled this week that agencies have violated his previous order by failing to restore access to the funds.
They [Trump officials] are creating a lot of confusion, likely on purpose, said Rachel Jacobson, lead researcher of state climate policy at the Center on Budget and Policy Priorities, a liberal think tank.
So far, Trump has not yet explicitly targeted the law s clean energy tax credits for developers and consumers, which have proven popular in both red and blue states. Analysts say those credits have been a key driver in making renewable projects attractive for financiers and developers.
However, climate advocates say Trump could revise regulations from the Internal Revenue Service to limit access to the credits, or slash agency staff to delay credit approvals. Some fear he could work with Republican allies in Congress to repeal the tax credits altogether.
Even the threat of tax credit repeal will cool the market and make it harder for project financing, Jacobson said.
State leaders say they re still working to understand the extent of Trump s orders and how their plans will be affected. But they point to the investments they ve made at the state level and the rapid growth of renewables as an affordable electricity source.
[Federal funding] would have been immensely helpful, but our program was always built to stand alone, said Parker, the New York lawmaker. Whatever roadblocks the federal government tries to put in our way, we ll try to legally deconstruct them, drive around them or drive on roads that don t have roadblocks.
As a 501c(3) public charity, Stateline is a component of States Newsroom, a nonprofit news network backed by grants and a coalition of donors. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions:[email protected].
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.