What Developers Need to Know About 2025’s Biggest Environmental Policy Shifts

Regulatory Shake-Up: What Renewable Energy Developers Need to Know About 2025’s Biggest Environmental Policy Shifts

The energy development landscape in the United States is undergoing some seismic regulatory changes. In early 2025, President Trump signed Executive Order 14154, "Unleashing American Energy," launching a sweeping effort to roll back federal rules deemed to "unduly burden" domestic energy production. While aimed at streamlining development, the move has triggered significant controversy and confusion.

Here’s a breakdown of three major regulatory shifts now affecting renewable energy developers.

Endangered Species Act: Redefining “Harm” 

What Changed?

The U.S. Fish and Wildlife Service and the National Marine Fisheries Service proposed a redefinition of “harm” under the Endangered Species Act (ESA). The new rule would eliminate habitat damage from the definition of harm, narrowing it only to actions that directly injure or kill listed species.

Why It Matters:

This change revokes protections that have long been used to block or modify projects based on habitat impacts, even if no animals were physically harmed. For developers, this could mean fewer official reviews, shorter timelines, and lower costs unless animals could be directly impacted. But for conservationists, it’s a dangerous weakening of species protection.

Takeaways:

For now, the old rules still apply. A final rule could appear in late 2025. If finalized, developers may no longer need ESA permits unless their projects directly harm a listed species. It’s critical to monitor how courts respond and whether lawsuits delay or reshape the final rule. In the meantime, developers should connect early with environmental specialists and legal teams to manage risk and build flexibility into schedules in case of lawsuits or policy shifts.

Migratory Bird Treaty Act: Incidental Take No Longer Punishable

What Changed?

The Interior Department reinstated the first Trump administration’s interpretation of the Migratory Bird Treaty Act (MBTA), which was revoked under the Biden administration in 2021. As of April 11, 2025, only intentional actions—such as illegal hunting or purposeful nest destruction—are punishable under the MBTA. Accidental bird deaths from striking a wind turbine no longer count as violations.

Why It Matters:

This removes legal liability for accidental bird deaths from wind turbines. It’s a major shift for wind developers, who may now legally sidestep costly mitigation measures. Federal appeals courts are still split. Some courts (the Second and Tenth Circuits) hold that the MBTA covers incidental take, while others (the Fifth, Eighth, and Ninth Circuits) disagree, so geography matters. 

Takeaways:

Developers should still consider voluntary best practices. Investors, insurers, and state agencies may still expect bird-safe designs, especially with potential regulatory reversals on the horizon. And state, local, or other federal rules (e.g., ESA and Bald and Golden Eagle Protection Act) may still require protection and mitigation measures.

Wind Permitting Pause: Wetlands Projects in Limbo 

What Changed?

Executive Order 14154, issued on January 20, 2025, imposed a moratorium on new or renewed federal approvals, permits, leases, and loans for both onshore and offshore wind projects, pending a comprehensive review of federal wind leasing and permitting practices. This directive, along with the Department of the Interior's Secretarial Order 3415, effectively halted wind energy permitting activities across federal agencies.

The result was a patchwork response from the U.S. Army Corps of Engineers (USACE). While some USACE districts have paused finalizing wind permits, others continue processing applications, resulting in confusion among developers and stakeholders. Some districts (like New England, New York, and Philadelphia) have confirmed a permitting freeze. Others (like Fort Worth) have resumed issuing permits. Many are in limbo, offering inconsistent or unclear guidance.

Why It Matters:

This regulatory uncertainty has injected confusion and delay into wind development nationwide.  Other federal agencies like the Department of the Interior have placed a temporary pause on both offshore and onshore wind projects (although Empire Wind was recently greenlit following a separate state-level agreement).

Takeaways:

Until federal agencies complete their review, expect continued inconsistencies. Developers should maintain close contact with these agencies and prepare for sudden policy shifts.

Final Thoughts: Stay Informed, Stay Flexible 

2025 has already proven to be a year of regulatory upheaval. The best approach right now is proactive risk management:

• Engage early with environmental and legal experts
  
  
• Track changes to permitting guidance closely.
  
  
• Build flexibility into project timelines.

Above all, remember that these policies are subject to legal challenges and political change. A future administration could undo or revise these rules, meaning today’s flexibility is tomorrow’s lifeline.

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