President Donald Trump has halted all leasing for new offshore wind farms in federal waters as one of his first acts in office, a move that could complicate state-level renewable energy targets.
Trump on Monday withdrew all areas on the US outer continental shelf from consideration in offshore wind leasing through an executive order that takes effect today and lasts indefinitely.
The directive protects rights granted to owners of "existing leases in the withdrawn areas", theoretically giving a pass to projects that have already received permits from the federal government. But the order also directs the US Department of the Interior to review "the ecological, economic and environmental necessity" of potentially terminating or otherwise modifying those leases. Interior will make recommendations on the path forward based on its findings.
In addition, Trump ordered a "temporary cessation" of all federal onshore and offshore wind leasing and permitting pending a review of those practices in light of "various alleged legal deficiencies" that include disruptions to transportation, national security, commercial interests and marine mammals. The evaluation, led by Interior, will look into impacts on wildlife, the economic costs of intermittent generation and "the effect of subsidies on the viability of the wind industry."
The directive could complicate plans along the US east coast, where New England and mid-Atlantic states expect offshore wind to provide an increasing amount of generation and renewable energy certificates (RECs) as regional clean energy mandates escalate. Industry advocates have touted ocean-based wind as a necessity for New England, which has little room onshore for new utility-scale projects, and New York, where transmission constraints mean the heavily populated downstate area receives most of its electricity from fossil fuels. Unlike onshore wind farms — which often reside on private property, putting them beyond the federal government's oversight — offshore projects depend on federally controlled waters.
New Jersey governor Phil Murphy (D), whose state is pursuing 11,000MW of offshore wind by 2040, said he remains committed to the state's environmental and clean energy priorities.
"New Jersey will explore all available options to protect the health of our environment and residents while bolstering energy independence," Murphy said.
New York regulators are taking a wait-and-see approach to the situation for now.
The New York State Public Service Commission "will carefully review federal actions regarding offshore wind development," the agency said. "It is too soon in the process to determine what impact, if any, federal actions might have on New York reaching its ambitious renewable energy targets", which include 9,500MW of offshore wind by 2035.
Renewable energy groups came out strongly against the order. Offshore wind trade group the Oceantic Network called the decision "baffling" in light of forecasts that energy demand will rise considerably over the next five years and estimated the move could potentially strand $25bn in supply chain investments.
Excluding resources based on the idea that they have "partisan character" undercuts Trump's pursuit of "energy dominance", running counter to other executive actions from Monday aimed at accelerating permitting for domestic energy production, American Clean Power Association chief executive Jason Grumet said.
"While on one hand the administration seeks to reduce bureaucracy and unleash energy production, on the other it increases bureaucratic barriers, undermining domestic energy development," he said.
In addition, Trump paused activities around the Lava Ridge Wind Project, a potentially 1,000MW system on public lands in Idaho, calling the Bureau of Land Management's approval in December "allegedly contrary to the public interest" and subject to "legal deficiencies". Interior will evaluate the project's record of decision and possibly conduct new analysis on the system.
