Strong Headwinds: The Impact in Wisconsin of the President’s Executive Order Regarding Federal Approvals of Wind Energy Projects

On his first day in office, January 20, 2025, President Trump signed an executive order that significantly alters policy toward wind energy production. The order includes the following key directives:

• Withdrawal of all areas within the Offshore Continental Shelf (OCS) from wind energy leasing;
• A halt on consideration of new or renewed wind energy leases in the OCS;
• A temporary suspension and review of federal wind leasing and permitting practices;
• An environmental assessment of “defunct and idle windmills”; and
• A moratorium on federal approvals for the Lava Ridge Wind Project in Idaho is being developed on federal land.

Additionally, the Department of the Interior (DOI) issued Order No. 3415, temporarily suspending its attached agencies and bureaus from issuing any “onshore or offshore renewable energy authorization.” These executive actions raise important questions for wind energy projects nationwide, including Wisconsin.

Potential Impacts on Wisconsin Wind Energy Projects

Federal Permitting Challenges

While Wisconsin's wind projects are primarily developed on private land, many still require federal permits. For example, wind projects often need U.S. Fish and Wildlife Service (a bureau within the DOI) approval to ensure compliance with the Endangered Species Act. The executive order introduces uncertainty about whether these approvals will be delayed or more difficult to obtain under an administration that appears skeptical of wind energy development.

Similarly, nearly all wind projects require a Federal Aviation Administration (“FAA”) Determination of No Hazard authorization. Although the executive order does not explicitly reference the FAA, the broader federal stance on wind energy could indirectly affect the approval process. The full extent of these potential delays remains unclear.

Clean Water Act Permitting Halt

A more immediate impact of the executive order is the U.S. Army Corps of Engineers' temporary nationwide stoppage of Clean Water Act (“CWA”) permitting for onshore wind farms. Wind developers often require CWA Section 404 permits for wetland filling, and without clarity on when the Army Corps will resume these approvals, project timelines could encounter setbacks.

Indirect Effects on Development Timelines and Financing

Beyond direct permitting issues, the executive order may disrupt wind project timelines by:

• Increasing uncertainty around interconnection approvals with the electric grid;
• Creating financing risks as investors may hesitate in an unpredictable regulatory environment; and
• Potentially heightening litigation risks.

Even though Wisconsin wind projects do not involve offshore federal leases and typically are not sited on federal land, the regulatory uncertainty precipitated by the executive order and other federal actions could deter investment and slow project development in the state.

Market Uncertainty

Beyond regulatory hurdles, the executive order may cause developers to hesitate in pursuing projects due to concerns over shifting federal policies. This uncertainty compounds existing challenges in the industry, including rising costs, higher interest rates, and supply chain disruptions.

Future Outlook

The long-term impact of these federal actions remains uncertain. For Wisconsin developers, the key question is whether federal agencies, such as the Army Corps, will resume wind-related permitting processes or if further regulatory roadblocks will emerge. Given these uncertainties, Wisconsin’s wind energy sector stakeholders should closely monitor agency actions and consider legal and strategic options to mitigate risks.

Ultimately, the executive order creates a more complex and uncertain environment that could slow down the industry’s momentum.

If you want further information or need assistance, please contact the author or your DeWitt relationship partner with any questions.