Interior Secretary Doug Burgum issued a secretarial order late Friday that mandates federal agencies consider "capacity density" when evaluating new onshore solar and wind, as well as offshore wind, project proposals. This directive, which assesses the land and water area projects cover relative to their energy output, has prompted significant concern among renewable energy developers and industry observers regarding the future of clean energy under the current administration.

Burgum stated that commercial-scale solar and wind projects, by their nature, require more expansive land and water footprints compared to fossil fuel or nuclear facilities. He asserted that such projects represent "highly inefficient uses of Federal lands" and may "unnecessarily and unduly degrade Federal lands" if alternatives exist that generate equivalent or greater energy on less federal acreage. This interpretation could conflict with the Bureau of Land Management’s (BLM) multiple-use mandate for federal lands.

The order immediately casts doubt on an estimated 35 solar projects and three wind projects currently awaiting permitting action on federal lands. It follows a series of actions by the Interior Department aimed at restricting renewable development, including a requirement for personal secretarial approval for each project. On Monday, the Bureau of Ocean Energy Management (BOEM), an Interior agency, further reinforced this stance by rescinding requirements for a five-year schedule of anticipated offshore renewable energy lease sales, citing the Secretary's discretion.

Industry stakeholders have voiced strong opposition. Justin Meuse, government relations director for climate and energy at the Wilderness Society, characterized the order as "yet another attempt by the administration to kneecap the clean energy transition." He added that it is "clearly designed to drive wind and solar developers off public lands while further rigging the system in favor of oil, gas, and coal leasing and speculation." An Interior spokesperson declined further comment.

Even projects already approved, such as the Rough Hat Clark Solar Project in southern Nevada, which could power approximately 120,000 homes, face uncertainty. Candela Renewables, the San Francisco-based developer, is currently assessing the order's implications for construction. Joshua Axelrod, senior advocate for the Natural Resources Defense Council’s nature program, suggested that the industry may need to pursue legal action, given the significant investments already made in permitting and surveys.

Sean Gallagher, senior vice president of policy at the Solar Energy Industries Association, criticized the administration's actions, stating, "It’s clear that this administration cares more about promoting their favorite energy sources than winning the AI race and powering America’s future." He dismissed the 'inefficient use' argument as a pretext for "heavy-handed, bureaucratic red tape."

Former Deputy Solicitor Travis Annatoyn, now an attorney at Arnold & Porter, highlighted that coal, natural gas, and nuclear plants are rarely built on federal lands, suggesting the 'either/or' approach is misplaced. Michael Gerrard, director of Columbia Law School’s Sabin Center, echoed this, noting that the federal lands targeted for solar development typically lack fossil fuel resources, meaning there is no direct competition for acreage. Both experts contend that the "capacity density" formula serves as an "objective-looking veneer" to suppress renewables and bolster fossil fuel extraction, rather than addressing genuine land-use conflicts.