Legal challenges provide the US wind sector with renewed confidence
The latest figures from the American Clean Power Association (ACP) show that the USA’s installed utility-scale clean power capacity exceeded 370GW during the first quarter of 2026 following the addition of 6.4GW of new solar, wind and energy storage capacity. The growth was driven mainly by solar and battery storage, while wind energy continues to face more difficult conditions. The onshore wind pipeline remained largely unchanged, while the offshore wind pipeline declined by 35%, with permitting delays, regulatory uncertainty, and challenges in securing federal approvals all contributing to the slowdown.
I attended ACP’s annual conference in Houston, Texas, from 1 to 4 June. Around 8,000 people participated and, compared with 2025, I was surprised by the noticeably more positive mood. Although the current administration has introduced several laws and measures that have been damaging for the industry, there was a stronger sense that the sector is pushing back. Increasingly, the industry is challenging these measures through the courts, and recent developments suggest that these efforts are starting to gain ground.
One example is action taken by California Attorney General Rob Bonta and California Energy Commission Chair David Hochschild, who issued a notice of intent to sue over an agreement between the US Department of the Interior and Golden State Wind. California argues that the agreement violates the Outer Continental Shelf Lands Act, which governs the offshore wind leasing programme. The notice gives the parties 60 days to address the alleged violations before legal proceedings begin.
Another development is the dismissal by the United States Court of Appeals for the First Circuit of the Trump Administration’s appeal concerning the federal pause on wind energy permitting. The dispute originated from a presidential memorandum issued on 20 January 2025 directing federal agencies to suspend approvals for wind energy projects while a review was carried out. A coalition of attorneys general challenged the policy, arguing that it was unlawful and lacked a reasoned explanation. A federal court agreed, finding the permitting freeze arbitrary, capricious and contrary to law. The federal government initially appealed but later withdrew, leaving the lower court ruling in place.
Further legal action has been launched by Renewable Northwest and other clean energy organisations against the US Department of Defense. The lawsuit alleges that the department has halted or delayed mandatory national security reviews required for wind energy developments on private land. Because approvals by the Federal Aviation Administration depend on completion of these reviews, the plaintiffs argue that the delays have created a de facto block on new wind projects. The coalition is asking the court to require the Department of Defense to resume standard review procedures and restore normal permitting timelines.
A further ruling has also favoured the industry. A federal court overturned an Internal Revenue Service (IRS) notice that restricted access to clean energy tax credits for wind and solar projects. The court found that the agency failed to justify the removal of the long-established Five Percent Safe Harbor provision, which developers had relied on for more than a decade to secure tax credit eligibility. It also ruled that the IRS had not adequately considered the impacts on developers and investors or explained why wind and large-scale solar were treated differently from other clean energy technologies. The notice was set aside and returned to the IRS for further review.
Taken individually, these cases do not resolve all the challenges facing the US wind industry. Permitting delays, policy uncertainty, and regulatory changes continue to affect onshore and offshore development. Nevertheless, they show that the industry is actively defending its position and that courts are willing to scrutinise government decisions. While the road ahead remains challenging, there are growing signs that the sector is finding ways to respond and that the balance may gradually be shifting in its favour.
Enjoy reading,
Floris Siteur
