On April 1, 2026, a U.S. District Court Judge in Massachusetts blocked a series of federal agency actions that complicated solar and wind development nationwide, potentially re-establishing key development opportunities. The ruling addressed challenges that emerged throughout 2025, including tax credit restrictions, memoranda, and other agency actions.
The ruling came as a result of a suit filed in December 2025 by a coalition of regional clean energy trade associations against five federal agencies in response to a series of Executive Orders and presidential memoranda beginning in January 2025.
What Caused The Solar & Wind Permitting Complications?
Most solar and wind projects have been, or will be, affected by the following actions taken by federal agencies in 2025:
- Department of the Interior (DOI) Review Procedures Memo – On July 15, 2025, the DOI issued a memorandum establishing a three-level review process for wind and solar decisions, culminating in review by the Secretary of the Interior.
- Wind & Solar Information for Planning and Consultation (IPaC) Ban – The July 2025 memo also prohibited solar and wind projects from using the U.S. Fish & Wildlife Service (USFWS) IPaC system. The IPaC system is a planning tool used to streamline USFWS review for projects that include threatened or endangered species. The memo also included an additional final review by the Office of the Secretary.
- DOI Land Order – On Aug. 1, 2025, the DOI Secretary issued an order that required the department to review “reasonable project alternatives with higher capacity densities” for proposed energy projects.
- U.S. Army Corps of Engineers (USACE) Memo – On Sept, 18, 2025, the USACE issued a memo announcing it was directed to consider energy density when processing permit applications for energy projects.
- Zerzen Memorandum-Opinion – On May 1, 2025, DOI Solicitor Gregory Zerzan published a memorandum-opinion that allowed the current Administration to form new interpretations of existing legislation on issues ranging from migratory bird protections to mineral rights ownership on publicly owned lands.
- Tax Credits – The One Big Beautiful Bill Act (OBBA), signed July 4, 2025, changed project eligibility for tax credits on solar and wind projects. To qualify for tax credits, a project must start construction by July 4, 2026, and be placed into service by Dec. 31, 2030. Projects starting after July 4, 2026, must be in service before Dec. 31, 2027, or they are no longer eligible for tax credits.
- 5 Percent Safe Harbor – Since Sept. 2, 2025, solar and wind projects over 1.5 MW AC are no longer eligible for the 5 Percent Safe Harbor and must meet a new Physical Work Test. This Physical Work Test required actual construction, such as excavation, setting anchor bolts, or manufacturing project-specific components, to lock in credit eligibility. Paperwork, permits, and standard inventory orders are no longer eligible.
What Happens Now?
The court decided that the plaintiffs had a legal right to sue, and it ruled that four out of the five government actions were likely "arbitrary and capricious," meaning they weren't properly explained or justified. The court agreed that these government actions would cause the plaintiffs permanent harm and rejected the government's argument that financial losses alone were insufficient to prove serious harm, noting that the plaintiffs cannot recover money from the government in this type of case.
While the Massachusetts decision has temporarily blocked the agencies from enforcing the 2025 actions nationwide, it remains unclear whether this will help developers whose projects are currently stalled, as federal agencies still have significant control over the application process.
Additionally, the government has appealed a similar case in Massachusetts, and that decision could change the outcome for this case. This decision might also affect other lawsuits involving offshore wind projects, including a case involving the New England Wind project, where the government is reconsidering its stance due to this court order. Other similar efforts to review or delay wind projects are now in question as well.
Navigating Permitting Complexities
Navigating these regulatory shifts required precise project management and exhaustive documentation to preserve financial viability
In this rapidly evolving landscape, Davey Resource Group (DRG) provides the critical expertise needed to navigate these regulatory hurdles. DRG’s experts can assist with comprehensive environmental consulting, site assessments, and the rigorous construction documentation required to meet the new federal standards, ensuring that solar and wind projects remain on track and eligible for vital tax incentives. Contact your local DRG office to learn more.
Article Contributors:
Heather Bobich, Market Manager, Davey Resource Group, Great Lakes/Midwest
