The Shifting Winds in Federal Energy Policy: Department of the Interior Implements Sweeping New Review Requirements for Wind and Solar Energy Projects

On July 15, 2025, the U.S. Department of the Interior (DOI) issued a memorandum establishing significantly heightened review procedures for federal decisions, actions, consultations, and other undertakings related to wind and solar energy projects. The memorandum, titled Departmental Review Procedures for Decisions, Actions, Consultations, and Other Undertakings Related to Wind and Solar Energy Facilities, reflects the shifting winds in federal policy under Executive Order 14315, “Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources” (the “DOI Wind and Solar Memo”).

The policy, effective immediately and with no expiration date, requires nearly all federal actions related to wind and solar energy facilities to undergo centralized, multi-tiered review culminating in approval by the Secretary of the Interior.  Federal bureaus within DOI’s purview include the U.S. Fish and Wildlife Service (FWS), the Bureau of Indian Affairs (BIA), the National Park Service, and the Bureau of Land Management (BLM), among others.  

This client alert summarizes the key provisions of the DOI Wind and Solar Memo, its potential impact on permitting and development timelines, and how it may affect state-level proceedings.

What Projects and Actions Are Covered?

The DOI Wind and Solar Memo applies broadly to:

• Projects sited on federal lands managed by DOI agencies. 
• Projects on private or state lands that require any authorization, consultation with, or approval by, or a permit from, a DOI agency (e.g., U.S. FWS incidental take permits under the Endangered Species Act).

There are 68 specified categories of action relating to wind and solar projects that trigger the multi-tiered internal review process, including: 

• NEPA documents (EAs, EISs, FONSIs, RODs);
• Right-of-way grants, leases, and temporary use permits;
• Biological assessments, biological opinions, and species consultations;
• Permits under the Endangered Species Act, Migratory Bird Treaty Act, and the Bald and Golden Eagle Protection Act; 
• Section 106 compliance under the National Historic Preservation Act; 
• Cultural and tribal resource consultations;
• Notices and authorizations published in the Federal Register;
• Funding grants and discretionary awards;
• Any other federal agency action or decision facilitating wind or solar development.

A catch-all provision further extends the policy to “any other undertaking that in whole or in part facilitates the development, construction, or operation of wind or solar energy facilities.”

New Review Process

Under the DOI Wind and Solar Memo, all covered actions must be submitted for centralized review by the DOI Office of Executive Secretariat and Regulatory Affairs, with subsequent review by the Deputy Secretary of the Interior, and with final approval by the Secretary of the Interior.

Routine decisions that were once handled regionally or by field offices must now undergo top-level scrutiny, regardless of complexity or urgency.

Implications for Developers

1. Project Delays: The new process is already causing significant delays, with some U.S. FWS field offices reportedly pausing processing of wind and solar-related consultations pending further guidance.  Agency tools aimed at speeding up the consultation process also have been scaled back: For example, the U.S. FWS’s Information for Planning and Consultation (IPaC) tool is routinely used by wind and solar developers as a screening tool for the potential presence of listed species and critical habitat.  However, as of this writing, the IPaC website states that solar and wind products are not eligible to use this tool, citing the DOI Wind and Solar Memo.  

2. Uncertainty for Privately Sited Projects: Projects located on private land are not insulated from the new requirements if they involve any federal permits or consultations under DOI authority. This includes siting of transmission lines and access roads that may need to cross federal lands, as well as species impacts.

3. Tax Credit Risks: The timing of the release of the DOI Wind and Solar Memo coincides with the July 4, 2025 signing of the One Big Beautiful Bill Act, which phases out clean energy tax credits for wind and solar projects after December 31, 2027, unless construction begins beforehand. The additional reviews required by the DOI Wind and Solar Memo may jeopardize lengthen project timelines and hinder efforts to meet those deadlines.

4.  Impacts to Project Financing.  The added uncertainty and potential delays introduced by the DOI Wind and Solar Memo may pose risks to project financing.  Lenders and tax equity investors typically require reasonably clear permitting timelines and demonstrated eligibility for critical tax incentives as conditions precedent to closing.  The memorandum’s requirement for Secretary-level review of even routine federal actions may disrupt those timelines, increasing the risk of missed commercial operation milestones, delayed disbursements, or failure to qualify under “begin construction” rules for the Investment Tax Credit (ITC) and Production Tax Credit (PTC). Projects in late-stage development or approaching financing deadlines may need to reassess their permitting risk allocation, revise project schedules, or negotiate extensions with financial partners. 

5. Risk to State-Level Proceedings: While the DOI Wind and Solar Memo governs federal agency actions, its impact may ripple into state-level permitting processes. For example:

• States that condition approvals on receipt of federal consultations (e.g., ESA Section 7, eagle permits) may see delayed timelines.
• State public utility commissions (PUCs) may need to reevaluate project schedules if federally related milestones are uncertain.
• In jurisdictions with coordinated permitting regimes, delays in a single federal component may stall broader approvals.

Recommendations

• Conduct an immediate audit of pending and planned actions to determine whether any aspect of a project may require approvals that fall within the scope of the Memorandum.
• Avoid a federal nexus where feasible (e.g., by siting projects to avoid impacts to federal lands or listed species).
• Coordinate early with counsel and consultants to identify mitigation strategies and document efforts to meet tax credit deadlines.
• Engage with DOI and congressional representatives to advocate for practical implementation policies and timely guidance.

Please contact either of the authors for assistance evaluating how the DOI’s new policy may affect your projects or with any questions about compliance, permitting, or risk management strategies.