The National Environmental Policy Act (NEPA) is often identified as a major obstacle to renewable energy projects locating on federal public lands or seeking federal funding. Once NEPA permits have been issued, a project may face additional delays if a federal agency’s decision is challenged in court. The delays associated with NEPA permitting for renewable generation projects have been explored by Fraas et al., but the effect of environmental court challenges to renewables projects has received less attention. This paper “Taking Green Energy Projects to Court: NEPA Review and Court Challenges to Renewable Energy” by Resources for the Future highlights that nearly a third of solar projects and half of wind projects completing NEPA environmental impact statement reviews faced court challenges.
Almost all cases were filed after the government agencies had issued their permitting decisions. Although the courts typically ruled in the government agencies’ and project developers’ favor, the majority of cases were appealed. Court challenges in both federal and state courts caused or contributed to the termination of three projects, and six additional projects experienced significant delays as developers awaited court appeal decisions. It was found that wind and solar projects that faced court challenges took an average of about 15 months longer to reach operational status than projects without court challenges.
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