Butterfly Nets and Business Bets: How Proposed Protections for Monarchs Could Snare Agribusiness, Renewables and Development

At a Glance

• The Fish and Wildlife Service has proposed seven critical habitat units for the Monarch Butterfly in coastal California, totaling approximately 4,395 acres. Developers may face restrictions on land use within these areas, potentially causing the need to modify or relocate projects.
• Impacts could be most acute within the agribusiness sector, which potentially could face new requirements for pesticide application and approval in all lower-48 states.
• The land use required by renewable energy projects, particularly wind and solar farms, may add to the burden of project developers to conduct thorough environmental impact assessments and implement mitigation measures to avoid or minimize adverse effects on the Monarch Butterfly during migratory periods or its habitat.

On December 12, 2024, the U.S. Fish and Wildlife Service (USFWS) published its proposal in the Federal Register to list the Monarch Butterfly (Danaus plexippus) as a threatened species under the Endangered Species Act (ESA). According to USFWS, this action responds to significant declines in the Monarch Butterfly population due to habitat loss, pesticide use and climate change. Unless adequate exceptions allowed under the ESA are incorporated into the final rule, this listing could impact development and approvals nationwide.

Designation of Critical Habitat in Coastal California

The USFWS has proposed seven critical habitat units for the Monarch Butterfly in coastal California, totaling approximately 4,395 acres. Development projects within these areas will be subject to more stringent environmental reviews to ensure they do not adversely affect the Monarch Butterfly or its habitat. Developers may face restrictions on land use within these areas, potentially causing the need to modify or relocate projects. Additionally, they may be required to implement mitigation measures, such as creating buffer zones, restoring habitats or funding conservation initiatives.

Nationwide Implications for Agribusiness

The nationwide migratory pattern of the Monarch Butterfly means that this proposed listing will also have nationwide implications. These impacts could be most acute within the agribusiness sector, potentially facing new requirements for pesticide application and approval. The USFWS may impose new restrictions on the application of pesticides harmful to the Monarch Butterfly, such as neonicotinoids. Implementation of buffer zones around critical habitats where pesticide use is restricted may also be required. Additionally, there may be encouragement or requirements for integrated pest management (IPM) practices that reduce reliance on chemical pesticides by incorporating biological controls and sustainable farming practices.

Pesticides that could harm Monarch Butterfly populations may undergo a more rigorous review by the EPA. Additional mitigation measures, such as restrictions on application rates, timing and methods to minimize species exposure may be required. There will need to be consultation with USFWS during the pesticide approval process to ensure new pesticides do not jeopardize the Monarch Butterfly or its habitat. These changes could require adjustments in crop management strategies and may increase operational costs.

Renewable Energy Projects Could Face Additional Hurdles

The land use required by renewable energy projects, particularly wind and solar farms, may add to the burden of project developers to conduct thorough environmental impact assessments and implement mitigation measures to avoid or minimize adverse effects on the Monarch Butterfly or its habitat. This could increase project costs and extend timelines for obtaining necessary permits. Some alternative energy projects may not be permitted if adverse impacts on the Monarch Butterfly or its habitat areas are identified and cannot be adequately mitigated. This listing could also provide more ammunition for local opposition to these projects, making it a target for litigation.

Public Comment Sought on Exceptions

The USFWS is seeking public comments on the proposed listing of the Monarch Butterfly as a threatened species. Interested parties, including industry stakeholders, have until March 12, 2025, to submit their comments. The USFWS has scheduled two public informational meetings followed by public hearings on January 14 and 15, 2025.

The USFWS seeks public comments on several aspects of the proposed listing and critical habitat designation, particularly regarding pesticide use. They are requesting input on which pesticide uses and application methods result in exposure and adverse effects to Monarch Butterflies, and whether to take from those uses in a 4(d) rule. Additionally, they seek comments on whether exceptions for those uses should include measures to mitigate the effects of pesticides on Monarch Butterflies, and whether those measures should be tailored according to the areas and times of the year when Monarch Butterflies are present.

The agency is also considering how habitat restoration and other compensatory mitigation may address unavoidable pesticide impacts to listed species and whether habitat restoration or creation should be considered as an offset for unavoidable pesticide impacts to the Monarch Butterfly under a 4(d) rule.

Possible Trump Administration and Congressional Actions?

It is yet to be seen what steps, if any, the Trump administration will take to finalize listing the Monarch Butterfly and if Congress will act due to the significant potential impacts. We will continue monitoring the matter.

For More Information

Please contact the authors for further information or questions about submitting comments.