On his first day in office, Jan. 20, 2025, President Trump signed an executive order that was a shot across the bow to American wind energy production.
The executive order includes the following directives:
withdrawal from disposition all areas within the Offshore Continental Shelf (OCS) for wind energy leasing;
a halt in consideration of any area in the OCS for new or renewed wind energy leasing;
a temporary halt and immediate review of federal wind leasing and permitting practices;
an Order to assess the environmental impact of “defunct and idle windmills;” and
a moratorium on federal approvals for the Lava Ridge Wind Project in Idaho that is being developed on federal land.
In conjunction with the executive order, the Department of the Interior (DOI) also issued Order No. 3415, which temporarily suspends the agency and its attached offices and bureaus from issuing any “onshore or offshore renewable energy authorization.”
Impact on Wisconsin's Wind Energy Projects
In Wisconsin, the immediate question is how these federal actions may impact wind energy projects that are being planned or developed.
Wes Webendorfer, is a partner with DeWitt LLP, Madison, where he practices in environmental law, renewable energy, and land use.
One impact of the executive order is that, as of this writing, the U.S. Army Corps of Engineers has issued a temporary nationwide stoppage for Clean Water Act (CWA) permitting relating to onshore wind farms. Wind developers often need CWA Section 404 permits for wetland filling. The future status of the Army Corps’ permitting relating to onshore wind farms remains uncertain.
Other immediate impacts will likely be indirect and psychological – primarily because wind energy projects in the state are being developed on private (not federal) land.
In the Great Lakes, the development of wind energy systems is almost nonexistent, and regardless, the federal government lacks jurisdiction between the Wisconsin coastline and the state or international boundaries on Lakes Michigan and Superior.
Indirectly, DOI Order No. 3415 has at least the potential to impact Wisconsin wind energy projects on private land in the following ways:
Wind projects in Wisconsin often need various federal permits or authorizations to proceed. An example of such an authorization is a U.S. Fish and Wildlife Service (a bureau within the DOI) approval that a wind project complies with the Endangered Species Act. Wind energy project developers who do not yet have this kind of federal approval must now face an administration that appears hostile to wind energy. This creates a degree of uncertainty.
The executive actions may also indirectly delay or disrupt timelines for interconnection with the electric grid, project financing, and overall project completion timelines. It may also lead to increased litigation risk.
The imprecise reach of the executive order also creates insecurity for wind energy development. For example, nearly all wind energy projects need a Federal Aviation Administration (FAA) “Determination of No Hazard” authorization. It is unclear how the executive order will impact approvals that are issued by agencies like the FAA that are not directly referenced in the text of the order.
Uncertainty
The executive order may also create a psychological impact on the development of wind energy resources in Wisconsin. Even if the executive order may have relevance for projects in development on private land, it could create uncertainty in the minds of developers about whether necessary approvals for a project will be obtained on schedule (or at all).
A slower pace could impact project viability. It also creates additional market uncertainty for a wind energy sector that in recent years has faced increased costs, rising interest rates, and supply chain disruptions.
Ultimately, only time will tell as to whether these federal executive actions will have a meaningful impact on the development of wind energy in Wisconsin.
This article was originally published on the State Bar of Wisconsin’s Environmental Law Section Blog. Visit the State Bar sections or the Environmental Law Section webpages to learn more about the benefits of section membership.
