Since January 20, 2025, the renewable energy sector has experienced a wave of federal policy shifts reshaping how projects are planned, permitted, and financed. These changes - ranging from executive orders to new federal agency guidance - carry significant implications for solar, wind, and transmission development across the U.S.
Below, we break down the major regulatory and policy updates chronologically, with notes on what they mean for developers, communities, and the future of renewable energy.
National Energy Emergency Declaration
What it does: Expedites Clean Water Act (CWA) and Endangered Species Act (ESA) reviews, convenes the ESA “God Squad” (which can exempt projects from ESA rules), and directs agencies to reshape decision-making frameworks.
Impact: Set the stage for the February permitting pause related to wetland impacts.
Withdrawal of Offshore Wind Leasing
What it does: Withdraws all Outer Continental Shelf (OCS) areas from offshore wind leasing; suspends federal permits, leases, rights-of-way, and loans for onshore/offshore wind.
Impact: Offshore wind development nationwide is effectively frozen. Onshore wind projects requiring federal involvement are also paused, with financing and transmission corridors facing new barriers.
Rescission of Environmental Justice (EJ) Orders
What it does: Revokes Justice40 (which dedicated 40% of climate funds to disadvantaged communities) and a 1994 EJ executive order.
Impact: Developers face fewer federal EJ requirements, though states and localities may continue to enforce their own standards.
What it does: Establishes a council to review FEMA disaster and hazard programs.
Impact: Could reshape floodplain and hazard rules, potentially affecting renewable project siting.
Feb 5 - USACE Renewable Permitting Pauses
What it does: Temporarily paused U.S. Army Corps of Engineers permitting for renewables. The pause was lifted within a week for all but wind projects.
Impact: Ongoing uncertainty for wind project timelines; solar projects largely unaffected.
Feb 14 - National Energy Dominance Council
What it does: Centralizes energy policy under a new council, prioritizing oil and gas.
Impact: While immediate effects are limited, renewables risk losing priority in the federal approval queue.
Feb 25 - CEQ Interim Final Rule on NEPA
What it does: Eliminates uniform NEPA regulations (40 CFR 1500–1508), requiring each agency to craft its own rules.
Impact: Short-term continuity, but long-term risk of inconsistency across agencies.
What it does: EPA and USACE narrowed wetlands jurisdiction to align with the 2023 Sackett v. EPA ruling.
Impact: Streamlines permitting for solar/wind on sites with isolated wetlands, reducing federal review triggers.
Apr 8 - Protecting American Energy from State Overreach
What it does: Directs DOJ to challenge restrictive state/local energy laws.
Impact: Could weaken state climate protections, creating legal uncertainty.
Apr 11 - MBTA Incidental Take Removed
What it does: Limits violations to intentional bird kills; incidental takes (e.g., turbine strikes) no longer penalized.
Impact: Major reliability relief for wind projects now, but creates future uncertainty if rules are reversed under a different administration; minimal impact on solar.
Apr 17 - ESA “Harm” Redefinition Proposed
What it does: Proposes limiting ESA “harm” to direct injury/killing, excluding habitat damage.
Impact: Could shorten ESA reviews for renewables, though lawsuits are likely.
July 15 - DOI Memo: Elevated Review & IPaC Restriction
What it does: Centralizes review of 69 categories of DOI-related actions and cuts off use of the IPaC tool for renewables projects.
Impact: Adds significant delays and uncertainty, particularly for projects that trigger a DOI-nexus, such as USFWS consultation.
July 29 - USDOT/FHWA Highway Buffer Guidance
What it does: Recommends siting wind turbines at least 1.2 miles from interstate highways or railroads.
Impact: Shrinks siting options for wind near transport corridors; possible spillover to some state highways.
What it does: Stops new USDA REAP grants/loans for solar/wind and bans solar panels sourced from “foreign adversaries” in USDA-funded projects.
Impact: Removes a major financing source for farm-based renewables, tightening project economics.
The first eight months of 2025 have brought a turbulent policy landscape for renewable energy developers. Federal actions have generally tilted toward slowing or complicating renewable permitting, financing, and siting - while prioritizing fossil fuel development.
For developers, the key themes are:
Uncertainty - shifting rules across agencies create new risks for project timelines.
Constraints - siting buffers, funding limits, and permitting pauses are narrowing viable pathways.
Opportunities - some policies, such as reduced EJ or ESA obligations, may streamline approvals in select cases.
Going forward, renewable developers will need to adapt strategies, strengthen state/local relationships, and anticipate potential litigation to navigate this evolving environment.
Looking for help navigating the complex world of permitting? Download our free Environmental Permitting Checklist to learn how to best avoid any development pitfalls and keep your project on time and on budget.