Trump administration challenges offshore wind projects, casting doubt on permitting bill

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The Trump administration is challenging offshore wind projects, citing concerns over environmental and economic assessments. The Justice Department filed lawsuits on three projects in Rhode Island, Maryland, and Massachusetts last month. Critics say the timing risks the Bipartisan American Affordability and Jobs Act, as risk-on assets remain sensitive to policy shifts. White House officials deny bad faith, insisting the lawsuits were filed to meet court deadlines. Meanwhile, CFT regulations have not yet been linked to the dispute.

The Trump administration has renewed opposition to offshore wind by challenging approvals for three projects near Rhode Island, Maryland and Massachusetts. The federal court motions allege that the Biden administration inadequately considered potential effects on marine life, fishing and coastal scenery. The government asked courts to return the project plans to the Department of the Interior.

The Justice Department requested reconsideration of approval for Danish company Ørsted's Revolution Wind on October 9. The department challenged US Wind's Maryland Offshore Wind approval on October 13. The department challenged Avangrid's New England Wind approval on October 20. Revolution Wind is scheduled to reach full commercial operation by the end of 2026. Construction has not started on Maryland Offshore Wind or New England Wind. The filings arose from lawsuits by project opponents, including Rhode Island's Green Oceans, Ocean City in Maryland and Nantucket-based ACK for Whales.

The challenges followed administration signals that opposition to renewable energy projects would ease to attract Democratic support for a permitting bill introduced in late September. The Bipartisan American Affordability and Jobs Act would accelerate project approvals. The bill would also stop future presidents from blocking infrastructure because of ideological opposition. TD Cowen energy transition policy analyst John Miller said the challenges were difficult to view as anything other than harmful to the bill. Miller said Democrats believed Democrats had reached an informal agreement with the administration.

The administration halted construction of Equinor's Empire Wind project off New York in April last year. Governor Kathy Hochul subsequently agreed to let the Constitution natural gas pipeline proceed. The administration later blocked Empire Wind and four other projects on national security grounds, but the administration lost in court. Last year, the Pentagon delayed approvals for hundreds of onshore wind projects, citing national security concerns about radar interference. The administration made slow progress implementing a court order allowing the projects to continue through the approval process. The administration subsequently offered to release dozens of projects and improve treatment of renewable energy to build support for the permitting bill. The administration has stalled about 45 gigawatts of wind energy.

American Clean Power Association chief executive Jason Grumet said the administration needed to respect the legislation's substance and spirit to secure passage. On Thursday morning, the White House said the White House had advanced two onshore wind projects. Later that afternoon, the White House issued a proclamation asserting that wind energy presents distinctive national security risks relative to other energy sources. The proclamation said the Commerce Department should restrict imports of turbines and other components. Senator Martin Heinrich, a co-sponsor of the bill, welcomed progress on the two onshore projects. However, Heinrich said hundreds of wind projects remained unresolved and should advance.

Administration officials rejected accusations that the administration was negotiating in bad faith. National Energy Dominance Council executive director Jarrod Agen wrote earlier this month that the White House continued to support permitting reform. Agen also urged the media to stop trying to undermine an agreement Agen described as beneficial to Americans. Responding to the New England Wind filing, a White House official said the lawsuits originated during the Biden administration. The official said court deadlines governed the government's responses. The official said the filings defended the current administration's litigation position. The official also said the administration had been transparent about the need for permitting reform and with the teams of Senators Whitehouse and Heinrich.

Critics questioned the court-deadline explanation because the government had requested extensions in all three cases, including in September. The government submitted the challenges shortly after the permitting bill was introduced. Tony Irish, a former Interior Department attorney and senior counsel at Public Employees for Environmental Responsibility, called the explanation highly dubious. Irish said the likelihood that deadlines in all the cases enabled the filings was very low. Industry insiders said the administration was using the motions as negotiating leverage. One insider said the administration was increasing the threatened consequences of failing to pass the legislation rather than demonstrating good faith.

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